$1 Trillion Surge: South Korea’s Top 10 Conglomerates Ride AI Chip Boom, SK and Samsung Lead Gains
South Korea’s leading business groups have experienced a dramatic increase in market value over the past year, primarily propelled by the burgeoning demand for artificial intelligence (AI) chips. The chip-to-energy powerhouse, SK Group, has emerged as the frontrunner, recording the most significant gains among the nation’s top conglomerates.
As of Friday, the combined market capitalization of South Korea’s top 10 conglomerates soared to 3,832.65 trillion won (approximately $2.6 trillion). This represents a remarkable 65 percent increase from 2,315.19 trillion won recorded at the end of the previous year, highlighting a robust market rally.
SK Group spearheaded this impressive growth. The aggregate market cap of its publicly listed affiliates surged to 1,139.76 trillion won, marking an exceptional 89.6 percent jump from 601.12 trillion won at the close of last year.
The semiconductor giant SK Hynix served as the primary catalyst for SK Group’s expansion. Its market valuation alone skyrocketed by 93 percent, climbing from 473.93 trillion won to an impressive 916.54 trillion won, driven by strong performance in the global chip market.
Beyond SK Hynix, other entities within the group also contributed significantly. SK Square, the group’s intermediate holding company, saw its market capitalization leap by 128 percent to 110.98 trillion won, fueled by positive revaluation expectations tied to its substantial stake in SK Hynix. Additionally, shares of SK Eternix, SK Telecom, and SK Innovation registered substantial gains, further bolstering SK Group’s overall valuation and market presence.
Samsung Group secured the second position in terms of market value appreciation among the nation’s largest conglomerates. Its combined market capitalization expanded by 68 percent, rising from 1,002.5 trillion won to 1,684.1 trillion won.
Mirroring SK Group’s trajectory, Samsung’s growth was predominantly driven by its dominant chipmaking arm, Samsung Electronics. The market value of Samsung Electronics surged by 82 percent, escalating from 709.76 trillion won to 1,289.1 trillion won, providing a massive boost to the group’s overall capitalization and reinforcing its leadership in the global technology sector.
The energy and defense conglomerate, Hanwha Group, achieved the third-largest increase. Its total market cap grew by 50 percent, reaching 173.72 trillion won from 115.67 trillion won at the end of the previous year. This growth was largely attributed to a strong rally in defense-related affiliates, including Hanwha Aerospace and Hanwha Systems, following global geopolitical developments.
Posco Group followed with a substantial 46.5 percent rise in market value. Other notable increases were recorded by Hyundai Motor Group at 46 percent, HD Hyundai Group at 44.6 percent, Shinsegae Group at 42.9 percent, Lotte Group at 42.3 percent, GS Group at 39.3 percent, and LG Group at 26.9 percent, showcasing a widespread bullish trend across various sectors.
This broad market rally also pushed the number of listed companies on South Korean exchanges with a market capitalization exceeding 1 trillion won (including preferred shares) to a record 405. This marks the first time this figure has surpassed the 400-company threshold, indicating robust investor confidence and market expansion.
Breaking down these high-value companies by exchange, 267 were listed on the benchmark Kospi, 137 on the secondary Kosdaq, and one on the entry-level Konex. Furthermore, a significant 79 listed firms boasted a market capitalization exceeding 10 trillion won, underscoring the substantial growth and maturity of South Korea’s financial markets.
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