The combined market value of South Korea's 10 largest business groups has fallen by more than 1,100 trillion won ($766 billion) this month as the KOSPI went through a sharp correction. SK Group's market value shrank about 30% in less than a month, led by a plunge in large-cap chip stocks.
As of the 23rd, the 10 groups were worth a combined 3,371.4 trillion won, down roughly 1,101 trillion won from 4,472.5 trillion won at the end of last month, according to the Korea Exchange and FnGuide on the 25th. All 10 groups lost ground as the KOSPI fell 18.83% this month.
SK Group recorded the steepest drop. Its market value fell 30.1% to 1,093 trillion won from about 1,563 trillion won at the end of last month. SK hynix (000660.KS) and SK Square (402340.KS), the two biggest contributors to the group's value, fell together as concerns spread over the profitability of artificial intelligence investments. The two stocks dropped 28.1% and 32.0% this month, cutting their market values by 365 trillion won and 48 trillion won, respectively.
HD Hyundai Group posted the second-largest decline, with its market value down 25.6% to 95 trillion won from about 128 trillion won, on weakness in shipbuilding stocks. Five of the group's eight listed companies are shipbuilding-related, leaving it heavily exposed to a selloff driven by concerns that the industry has passed its peak. The market values of HD Hyundai (267250.KS) and HD Hyundai Heavy Industries (329180.KS) fell 32% and 30%, respectively.
Samsung Group's market value fell 24.3% to 1,636 trillion won from about 2,161 trillion won. Samsung Electronics (005930.KS) accounted for much of the decline, with its market value down 19.6% to 1,260 trillion won from about 1,570 trillion won. Hanwha Group, which relies heavily on exporters in shipbuilding and defense, saw its market value fall 19.3% to 97 trillion won from about 120 trillion won. Hanwha Engine (082740.KS) and Hanwha Ocean (042660.KS) lost 34.2% and 30% of their market value, respectively, while Hanwha Aerospace (012450.KS) fell 21.4%.
LG Group, by contrast, held up better, with its market value down just 5.3% to 180 trillion won from about 190 trillion won. Shares of LG Energy Solution (373220.KS), a key listed unit, rose 7.3% over the same period, offsetting part of the group's decline. Analysts attribute the gain to expectations for growing demand for energy storage systems at U.S. artificial intelligence data centers. POSCO Group also fared relatively well, with its market value down 6.4% to 505 trillion won from about 540 trillion won.
Elsewhere, Hyundai Motor Group's market value fell 15%, GS Group's 13% and Shinsegae Group's 12%. Lotte Group posted the smallest decline among the 10 groups, at 4.3%.
