The market capitalization of South Korea's stock market has reportedly evaporated by approximately 210 trillion won over the past month.
As of 11:40 a.m. on September 14, the combined market capitalization of the KOSPI and KOSDAQ was recorded at 602.2 trillion won, according to the Korea Exchange and Koscom.
Specifically, the KOSPI market capitalization stood at 556.7 trillion won, while the KOSDAQ market capitalization was 45.5 trillion won.
This represents a decrease of 212.5 trillion won (3.41%) compared to the total market capitalization of 623.5 trillion won a month ago on August 14.
Compared to two months ago on July 14, the market capitalization has decreased by 34.9 trillion won (0.58%), and it has plummeted by a staggering 1,971.2 trillion won (24.66%) since the KOSPI reached its all-time high of 9,385.59 on June 22.
The combined market capitalization of the KOSPI and KOSDAQ first surpassed 600 trillion won on April 27 and quickly exceeded 700 trillion won just eight trading days later on May 11. In June, it even surpassed 800 trillion won during trading.
The index has followed a similar trend. The KOSPI started the year at 4,000 points, broke through 5,000 points in January, and exceeded 6,000 points in February.
After a pause due to the impact of the U.S.-Iran conflict, the index rebounded in May, driven by semiconductor stocks, reaching 7,000 points and then 8,000 points. In June, it even surpassed 9,000 points, hitting an all-time high of 9,385.59.
However, the situation changed dramatically in July. The KOSPI index fell by 22.19% during the month, marking a record drop. The index, which had once exceeded 9,000 points, plummeted to 5,262.77.
Currently, the KOSPI is fluctuating between the 6,000 and 7,000 points range, struggling to find direction. The market capitalization is also hovering around 600 trillion won.
Notably, the poor performance of major stocks such as Samsung Electronics and SK Hynix, which have a significant weight in the domestic market capitalization, is evident. Both stocks, which once had market capitalizations exceeding 2,000 trillion won, have now fallen to the 1,000 trillion won range.
As of now, Samsung Electronics has a market capitalization of 1,482.3 trillion won, down 30% from 2,119.3 trillion won on June 18. Similarly, SK Hynix's market capitalization is 1,263.8 trillion won, a 39% decrease from 2,080.4 trillion won on June 22.
This decline is attributed to various factors, including rising international oil prices due to the prolonged conflict in the Middle East, geopolitical uncertainties, a strong won, and the persistence of high domestic interest rates.
Looking ahead, key variables for the stock market will include the alleviation of external uncertainties and foreign investment trends. Analysts generally believe that support for the KOSPI at the 7,000-point level will depend on the resumption of foreign net buying and the continued leadership of semiconductor stocks.
Han Ji-young, a researcher at Kiwoom Securities, stated, "This week, the KOSPI is expected to show volatility from the beginning of the week, influenced by major U.S. indicators, the potential for interest rate hikes by the Federal Open Market Committee (FOMC) this month, international oil prices, and changes in foreign investment trends."
* This article has been translated by AI.
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