This year, a so-called 'Chairman Meme' became popular among stock investors. During periods of soaring stock prices, AI-generated images of Samsung Chairman Lee Jae-yong and SK Chairman Chey Tae-won urging, "There's no time, hop on quickly!" circulated. Conversely, during market downturns, images of the group chairmen with anxious expressions saying, "Get off quickly!" were shared. The rising interest in key sectors such as semiconductors, automobiles, and defense, which have driven the K-stock market renaissance, contributed to the creation of the 'Chairman Meme' as group leaders frequently commented on stock prices and performance.
Who emerged as the winner in the 'market capitalization war' among major domestic conglomerates over the past year? Chey Tae-won’s SK Group led in both market capitalization increase and growth rate. Riding the wave of the artificial intelligence (AI) boom, SK Hynix's valuation soared, resulting in the group's market capitalization quadrupling over the year. Although Samsung Group, led by Lee Jae-yong, also saw its market cap increase by over 1,200 trillion won, it fell short of SK Group in both absolute increase and growth rate.
According to a report by Aju Economy on September 21, SK Group's market capitalization rose from 361.7 trillion won on September 18 last year to 1,608.52 trillion won on September 18 this year, an increase of 1,247.45 trillion won, marking a growth rate of 345.5%.
The driving force behind the expansion of SK Group's market cap was SK Hynix. The company's market capitalization surged from 256.98 trillion won on September 18 last year to 1,356.52 trillion won this year, an increase of 1,099.54 trillion won (427.9%). The anticipated demand for AI memory, including high-bandwidth memory (HBM), significantly contributed to this growth, accounting for a substantial portion of SK Group's overall market cap increase.
As a result of SK's rise, the gap with Samsung has narrowed significantly. Last September, SK Group's market cap was 49.8% of Samsung Group's, but it has now increased to 82.3%. On June 22, SK Hynix surpassed Samsung Electronics' common stock market cap, becoming the top company on the KOSPI for the first time in 25 years and 7 months. However, when including Samsung Electronics' preferred shares, Samsung's total market cap remained larger than that of SK Hynix.
Samsung Group also expanded its market cap while maintaining its position as the leader. Its market cap grew from 724.67 trillion won on September 18 last year to 1,954.05 trillion won, an increase of 1,229.39 trillion won (169.6%). This increase was about 18 trillion won less than that of SK Group. Samsung Electronics played a significant role in this growth, with its market cap rising from 476.53 trillion won to 1,525.88 trillion won, an increase of 1,049.35 trillion won (220.2%). The combined market cap increase of just Samsung and SK over the past year reached 2,476.84 trillion won.
The growth of groups ranked below the top two was more limited. Hyundai Motor Group, led by Chairman Chung Eui-sun, saw its market cap increase from 170.12 trillion won to 216.71 trillion won, a rise of 46.6 trillion won (27.4%). LG Group, led by Chairman Koo Kwang-mo, also grew from 158.94 trillion won to 188.27 trillion won, an increase of 29.33 trillion won (18.5%).
The rankings for fifth and sixth place changed, with HD Hyundai Group, led by Chairman Chung Ki-sun, moving up from sixth to fifth place with a market cap increase from 122.31 trillion won to 135.61 trillion won, a rise of 13.29 trillion won (10.9%). In contrast, Hanwha Group, led by Chairman Kim Seung-yeon, fell from fifth to sixth place, with a modest increase from 122.67 trillion won to 124.71 trillion won, an increase of only 2.04 trillion won (1.7%).
Doosan Group, led by Chairman Park Jung-won, maintained its seventh position while showing relatively high growth. Its market cap increased from 61.19 trillion won to 93.1 trillion won, a rise of 31.83 trillion won (52.0%), the third-highest growth rate among the top seven groups after SK and Samsung.
However, recent trends tell a different story. Compared to the all-time high of 9,114.55 recorded on June 22, the market caps of the top groups have all decreased. Samsung Group's market cap fell from 2,623.31 trillion won to 1,954.05 trillion won, a decrease of 669.26 trillion won (25.5%). SK Group's market cap dropped from 2,461.45 trillion won to 1,608.52 trillion won, a decline of 852.92 trillion won (34.7%). In total, the market caps of the two groups have decreased by 1,522.18 trillion won over the past three months. Hyundai Motor Group's market cap also fell from 306.05 trillion won to 216.71 trillion won, a decrease of 29.2%, while LG Group's market cap dropped from 219.32 trillion won to 188.27 trillion won, a decline of 14.2%. HD Hyundai saw a decrease of 19.9%, Hanwha dropped by 11.3%, and Doosan's market cap fell by 12.6%.
* This article has been translated by AI.
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