Samsung Electronics headquarters in Seocho District (Image courtesy of Yonhap)
SEOUL, Dec. 30 (Korea Bizwire) — Samsung Group, South Korea’s largest conglomerate, has seen its market capitalization plummet by over 160 trillion won this year, marking a significant contraction in its dominance on the domestic stock market.
As of December 26, the total market value of Samsung’s 22 listed companies, including Samsung Electronics, Samsung Biologics, and Samsung Life Insurance, stood at 548.4 trillion won, a sharp decline from 709.7 trillion won at the end of 2023. This represents a 22.7% drop, according to financial data provider Yonhap Infomax.
Declining Share in the Stock Market
Samsung Group’s share of the South Korean stock market has dropped to 27.57%, down from a peak of over 38% in early 2021. The figure is now at its lowest since 2016 when Samsung Biologics joined the KOSPI index.
The primary driver of this decline is Samsung Electronics, the group’s flagship company, whose stock has fallen by 31.71% this year. Additional declines were seen in other key affiliates, including Samsung SDI (-47.66%), Samsung Engineering (-42.68%), and Hotel Shilla (-42.58%).
Bright Spots in Finance and Shipbuilding
While most of the group’s stocks underperformed, financial subsidiaries like Samsung Life Insurance (+45.44%), Samsung Fire & Marine Insurance (+40.68%), and Samsung Card (+26.58%) posted gains, buoyed by expectations of corporate value enhancement.
Samsung Heavy Industries (+49.37%) also rose sharply, supported by renewed optimism in the shipbuilding industry.
However, these gains were insufficient to offset the impact of Samsung Electronics’ underperformance, which accounts for a significant portion of the group’s market capitalization.
ETF Performance Reflects Decline
The slump has also weighed on Samsung-focused exchange-traded funds (ETFs). The KODEX Samsung Group Value ETF has dropped 14.15% this year, while the TIGER Samsung Group Fundamental ETF and ACE Samsung Group Equal Weight ETF fell by 13.12% and 3.86%, respectively.
Dim Outlook for 2025
Analysts suggest Samsung’s recovery in 2025 may face significant challenges. Many brokerage firms have lowered their target prices for Samsung Electronics in recent weeks, citing weakened demand for memory chips and concerns over global trade policies under a potential second Trump administration.
“The increased supply from Chinese manufacturers is putting pressure on generic memory chip prices, and demand will likely remain subdued through the first half of next year,” said Noh Geun-chang, an analyst at Hyundai Motor Securities.
Kim Dong-won, an analyst at KB Securities, echoed these concerns, predicting that Samsung Electronics’ stock will continue to fluctuate in a narrow range due to delays in profit recovery tied to the memory chip cycle.
Samsung’s market trajectory underscores broader challenges in South Korea’s semiconductor sector and raises questions about its ability to regain its footing in a highly competitive global market.
Ashley Song (ashley@koreabizwire.com)
