Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Turbulent global economy shakes up KOSPI market cap rankings
A trading board shows real-time information on the benchmark KOSPI, secondary bourse Kosdaq and the won-dollar exchange rate at a dealing room of Hana Bank's headquarters in central Seoul, Monday. Yonhap
By Yi Whan-woo
Top-ranked companies by market capitalization on the benchmark KOSPI are experiencing ups and downs in the face of global economic turbulence under U.S. President Donald Trump’s second term.
Multiple companies have either moved up or down on the market cap list, after Trump made a tumultuous return to the White House on Jan. 20 and unleashed policies that challenged international norms.
The listed firms’ fortunes diverged in relation to Trump’s aggressive tariff policy, commitment to enhance military capabilities and unstable monetary shifts, which were behind the financial market volatility around the world.
According to the Korea Exchange (KRX), Korea's top carmaker Hyundai Motor saw its market cap at 37.15 trillion won ($27.11 billion), Tuesday, down from 44.29 trillion won on Jan. 2, as the U.S. trade barrier takes a toll on car exports.
On April 3, the Trump administration imposed a 25 percent tariff on imported cars as part of item-specific duties.
The measure is separate from a 25 percent “reciprocal” tariff that is at the center of Washington’s hostile trade policies against Seoul. The two sides are currently in talks over the issue.
“A 25 percent item-specific tariff would impose a burden of more than 8 million won per vehicle,” Hana Securities analyst Song Sun-jae said.
He added, "U.S. tariff-related costs could increase by 9.1 trillion won for finished cars and 2.9 trillion won for car parts in the worst possible scenario.”
Accordingly, Hyundai Motor moved down two notches to seventh on the domestic market cap rankings between Jan. 2 and Tuesday.
Its sister company, Kia, is also reeling from the U.S. tariff policy, with its market cap declining from 40.4 trillion won to 35.03 trillion won over the same period.
It declined by four notches to 10th on the market cap table.
Meanwhile, defense and related companies have been on an upward trajectory on the stock market, as Trump is pushing to restore America’s naval dominance and also to strengthen overall military power.
For instance, Hanwha Aerospace, after remaining out of the top 20 on the rankings, surged to fifth as its market cap more than doubled — from 16.56 trillion on Jan. 2 to 41.85 trillion won, Tuesday.
Due to Trump’s monetary policy and concerns over risks associated with the dollar, stock investors are increasingly opting for domestic market-oriented companies over those that are focused on exports.
KB Financial Group, Korea’s largest financial holding company, saw its market cap grow from 32.82 trillion won, Jan. 2, to 40.1 trillion won, Tuesday.
It also climbed four spots to sixth place.
“The presence of KB Financial Group is noteworthy considering the KOSPI is largely dominated by export-driven companies,” Inha University economics professor Shin Il-soon said.
Meanwhile, global chip giant Samsung Electronics and crosstown rival SK hynix remained unchanged on the market cap list. They retained their top two spots over high chip demand worldwide driven by the artificial intelligence boom and accelerated digitalization.