Korea's top 10 groups lose $106 bn in market cap since mid-Aug on Kospi free fall

The combined market capitalization of South Korea’s top ten conglomerates shriveled 153 trillion won ($106 billion) over the last seven weeks as the local markets lost ground on heavy foreign selling from faster U.S. tightening roadmap and concerns about the global economy..

According to the Korea Exchange on Monday, Korea’s top ten business groups have seen their market value retreat an average 12.9 percent, or 153 trillion won, since mid August.

The top four – Samsung, LG, SK, and Hyundai Motor in terms of market cap – lost the same 12.9 percent, or 136.88 trillion won, to 922.3 trillion won.

Samsung Group’s market cap declined 12.36 percent to 492.40 trillion won, mainly because Samsung Electronics stock lost 13.77 percent amid sluggish chip demand. Samsung Electro-Mechanics’ market cap contracted 18.84 percent due to price declines in multilayer ceramic capacitors.

LG Group’s combined market value sank to 192.3 trillion won from 216.3 trillion won.

LG Electronics and LG Innotek lost 23.53 percent and 21.65 percent amid doubts about their earnings on softening in demand for smartphones and home appliances.

LG Energy Solution lost just 4.45 percent, helped by its preemptive investment to respond to the U.S. Inflation Reduction Act.

SK Group saw its market cap shrink by 19.72 percent to 127.05 trillion won from 158.26 trillion won during the same period as SK hynix stock fell 16.44 percent and battery materials firm SK ie technology plunged 40.06 percent. SK innovation lost 28.3 percent.

Hyundai Motor Group’s market value sank 9.99 percent to 110 trillion won. It fared the market routs relatively better than others on strong green and premium vehicle sales.

Foreign investors net bought Hyundai Motor worth 447.8 billion won and Kia worth 164 billion won.

Lotte Group’s market cap fell to 18.79 trillion won from 21.36 trillion won during the same period, dragged down by Lotte Chemical’s drop of 21.72 percent. It yielded its market cap rank to Hanwha which lost to 18.80 trillion won from 21.24 trillion won on Hanwha Corp.’s retreat of 18.34 percent. But Hanwha Solution was just 3.1 percent off on expected benefit from U.S. IRA and green demand.

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