The affiliates of the 10 largest business groups accounted for around 54.66% of South Korea’s total stock market cap

2014-02-17 09:50

Top 10 conglomerates suffer 5.3 pct fall in market cap this year

South Korea’s top 10 conglomerates saw their stock market cap sink 5.32 percent this year, as most affiliated firms suffered a decline in their share prices amid a bearish run on the local stock market, data showed on Monday.
The combined market capitalization of affiliates under their wings stood at 693.86 trillion won ($653 billion) as of Wednesday, compared with 732.84 trillion won at the end of last year, according to the data compiled by the Korea Exchange.
The decline was largely attributed to a slump in Samsung Electronics Co., the country’s top market cap, and other major companies.
During the cited period, the country’s key stock index, the KOSPI, slumped to 1,935.84 points from 2,011.34 points.
According to the data, Hyundai Heavy Industries Group, the country’s leading shipbuilding conglomerate, suffered the largest fall of 15.4 percent in its market cap to 20.29 trillion won as of Wednesday, followed by energy and retail giant GS Group with a 10.07 percent dip to 10.39 trillion won.
Top conglomerate Samsung Group also saw its market cap decline 5.05 percent during the cited period to 302 trillion won, with Hyundai Automotive Group suffering a 2.5 percent fall in its market cap to 142 trillion won.
Hanjin Group, a major shipping and logistics group, was the only conglomerate whose market cap increased during the cited period. The group’s market cap rose to 3.99 trillion won from 3.8 trillion won over the cited period.
The affiliates of the 10 largest business groups accounted for around 54.66 percent of South Korea’s total stock market cap, down 1.48 percentage points from the end of last year, according to the data. (Yonhap)

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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