"If You Exclude the United States, It Is Only the Republic of Korea"... Now a Country With Two $1 Trillion Companies

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[The Financial News] The Republic of Korea has joined the ranks of countries with two companies valued at more than $1 trillion, alongside the United States. This comes as SK hynix's market capitalization, following Samsung Electronics, surpassed $1 trillion, or about 1,500 trillion won.
According to the Korea Exchange (KRX) on the 28th, the KOSPI closed the previous day at 8,228.70, up 2.25% from the prior session. At one point during the session, the index surged to 8,457.09, breaking above the 8,400 level for the first time ever.
Domestic stocks were effectively led by Samsung Electronics and SK hynix, in what market participants called a "Samsung-SK hynix rally." On the main bourse, SK hynix closed at 2,243,000 won, up 9.31% from the previous session. Samsung Electronics also extended its gains, rising 2.68% to 307,000 won.
SK hynix's market capitalization stood at 1,632.884 trillion won based on the previous day's close. With both Samsung Electronics and SK hynix now in the $1 trillion club, analysts say the standing of the Republic of Korea's semiconductor industry has risen even further.
Lee Jae-won, a researcher at Yuanta Securities Korea Co., Ltd., said, "Following Micron's breakthrough above $1 trillion in market capitalization, SK hynix has also crossed the $1 trillion mark." He added, "Among countries around the world, only the United States and the Republic of Korea have two or more companies with market capitalizations above $1 trillion."
Expectations for investment in artificial intelligence (AI) memory are also continuing in the U.S. stock market. On the 26th local time, Micron surged 19.3% after UBS raised its target price, and the Philadelphia Semiconductor Index (SOX) also climbed 5.5%. UBS said the AI boom is changing the structure of the memory industry cycle, citing the expansion of long-term supply agreements and the possibility of a prolonged supply shortage as key factors.
However, concerns about market concentration remain. Although the KOSPI hit a record high the previous day, only 75 stocks rose, while 826 declined.
Jin-hyuk Kang, a senior researcher at Shinhan Securities, said, "The KOSPI market-cap share of Samsung Electronics and SK hynix, which was around 35% at the end of last year, exceeded 50% last week." He added, "The index has surged, but only 75 stocks actually rose, making it increasingly clear that a small number of large semiconductor stocks are driving the market."
\r\nLee Jae-won said, "The launch of leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix single stocks has caused the index to rise in an extremely concentrated way, centered on the two largest stocks by market capitalization." He also noted, "While oil and interest-rate pressures are easing and earnings expectations remain intact, interest in the existing leading stocks centered on semiconductors and AI infrastructure should continue. At the same time, attention should also be maintained on sectors that have been left behind by the large-cap liquidity black hole."
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dschoi@fnnews.com Choi Du-seon Reporter