LG Group to rank No. 2 in market value upon Kospi listing of LGES

[Photo by Han Joo-hyung]

The combined market value of South Korea’s top 30 business conglomerates would likely top 1,600 trillion won ($1.3 trillion) and LG Group rise to No. 2 rank upon joining of LG Energy Solution.

According to market analysis company Leaders Index, the market cap of 30 top business group names would reach 1,624.5 trillion won when three big-names LG Energy Solution, Hyundai Engineering, and Hyundai Oilbank go public, gaining 44 percent from 1,129.4 trillion won in combined value of 186 public trading companies of top 30 business names in January 2018.

Without the three, 30 business groups added 16 in listed members to 201 over the last four years with market value rising 33 percent to 1,504.5 trillion won.

Samsung Group would remain the bulkiest, with combined value of 16 companies adding 35.5 percent to 646.7 trillion won over the last four-year period. The most valuable company Samsung Electronics contributed 18.1 percent in the market cap increase.

LG Group is expected to edge out SK Group in combined market cap upon listing of its battery making unit whose value is estimated to reach 100 trillion won. LG Group has increased listed members to 13 from 11 in 2018 and bolstered market cap to 125.6 trillion won from 105.2 trillion won.

SK Group holds 21 listed affiliates, the largest number among 30 major groups, upon listing SK Chemicals, SK Bioscience, SK IE Technology, and SK Square over the past four years. The total market cap of SK Group grew from 126.6 trillion in 2018 to 186.6 trillion won. SK Hynix posted 86.6 trillion won in the market cap, contributing about half.

Hyundai Motor Group holds 12 listed affiliates after Hyundai Autoever’s listing in 2019. Hyundai Engineering will be listed next month. Over the last four years, the group’s market cap increased from 93 trillion won to 123.7 trillion won. Kia Corporation’s market cap rose 144.2 percent, the highest of Hyundai’s affiliates, from 13.2 trillion won to 32 trillion won.

Kakao made the fastest ascension, jumping to fifth from 16th in 2018. Its market cap surged 750 percent from 10 trillion won in 2018 to 87 trillion won after the listings of Kakao Games, Kakao Bank, and Kakao Pay.

Lotte Group’s market cap decreased from 28 trillion won in 2018 to 19 trillion this year, losing rank to 12th from eighth. HDC Group lost 49.5 percent in the market cap due to deadly collapse of a high-rise building under construction by its affiliate HDC Hyundai Development Company.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]