SK Group overtakes LG to regain second place in market capitalisation
SK Group overtook LG Group to regain the second place in total market capitalisation of listed companies, according to an analysis conducted by CXO Research Institute of Korea on 23 January based on data from the Korea Stock Exchange. As of 19 January, SK Group overtook LG Group's 167 trillion won (US$127.75 billion) with 171 trillion won (US$127.75 billion), regaining its second-largest position.
The institute calculates the overall market capitalisation, including preferred shares, which have an impact on the market capitalisation structure.
After Samsung, SK Group, the group's second largest by market capitalisation, slipped to third place on 27 January 2022 with the listing of LG Energy Solution, which was assessed to have a market capitalisation of more than KRW 118 trillion on its first day of trading. That made it the second-highest individual stock behind Samsung Electronics and ahead of SK Hynix by about 35 trillion won.
A year later, at the beginning of January last year, LG Group's market capitalisation widened the gap to 203 trillion won, compared to SK Group's 124 trillion won. Even at the end of September last year, LG Group remained in the 200 trillion won range at 202 trillion won, while SK Group showed a gap of 152 trillion won.
The market capitalisation gap between these two groups has narrowed this year. As of 2 January, LG Group's market capitalisation stood at KRW 190 trillion, falling below the KRW 200 trillion mark. On the same day, SK Group's market capitalisation was 179 trillion won, a difference of about 10 trillion won.
On 19 January, SK Group regained the second place after two years. In addition, on this week's trading day (22 January), SK Group widened the gap with a market cap of 172 trillion won, while LG Group's market cap was 163 trillion won.
This can be attributed to the sharp decline in market capitalisation of LG Group's major subsidiaries due to the slowdown in the growth of demand for electric vehicles and the delay in the recovery of demand for home appliances and TVs. On the other hand, SK Group seems to be benefiting from positive expectations of improvement in the semiconductor industry, as evidenced by the positive performance of SK Hynix stock.
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