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Most Korean top conglomerates seeing market prices fall
Publication Date : 26-08-2013
Nine of the top 10 Korean conglomerates - all except SK Group - have suffered a drastic fall in their market capitalisation so far this year.
According to the Korea Exchange and financial news provider FnGuide on Sunday, the aggregate market value of the 90 listed companies affiliated to the top 10 conglomerates was 630.9 trillion won (US$567 billion) at the close of Friday trading.
This was 65.6 billion won or 9.4 per cent down from the 696.5 billion won at the beginning of the year.
The sharpest drop was seen in South Korea's leading conglomerate Samsung Group, whose aggregate market price nosedived by 46 trillion won or 14.1 per cent over the last eight months.
LG, GS and Lotte similarly saw declines of 6.6 trillion won, 2.9 trillion won and 2.8 trillion won, respectively, officials said.
FnGuide said the key cause for Samsung’s plunge was its flagship firm Samsung Electronics stocks seeing a 17.8 per cent net loss, from 232.1 trillion won to 190.8 trillion won.
Also, Samsung Engineering recorded a 53.7 per cent collapse in its stock price, following a water tank explosion last month that killed three employees and injured several others.
LG Group was hit by the poor business performance of LG Chem and LG Household & Health Care, whereas GS was affected by GS Engineering & Construction’s net loss in the first quarter of the year.
Hanjin Group saw its total market price fall by 33.6 per cent, from 5.5 trillion won to 3.7 trillion won, amid the slump in the shipping industry.
Hyundai Motor Group saw mixed results in the period. While total capitalisation fell by 2.1 per cent, the market value of its key subsidiaries Hyundai Motor and Kia Motors rose by 5.8 per cent and 11.2 per cent respectively.
The only net winner was SK Group, which struggled in most sectors but recorded a 38.2 per cent or 4.6 trillion won growth in its telecommunications sector, according to officials.