SEOUL — SK Group has successfully regained its status as the second-largest conglomerate in South Korea, surpassing LG Group in terms of market capitalization. This achievement is largely attributed to the significant performance of its chipmaking unit, SK hynix Inc. As of Friday, the total market capitalization of SK Group's listed subsidiaries reached 171 trillion won (approximately US$127.7 billion), overtaking LG Group's market cap, which stood at 167 trillion won.
According to Yonhap News Agency, a local corporate tracker, SK Group had previously held the second spot in market cap until January 2022. The shift in ranking occurred when LG Energy Solution, a battery manufacturing unit of LG Group, was listed on the Korea Composite Stock Price Index, causing SK Group to fall to the third position. Over the past two years, the gap in market capitalization between the two conglomerates had expanded, influenced by the varying performances in the battery and semiconductor markets.
However, recent months have seen a reversal in this trend. SK Group's total value experienced a significant rebound, surpassing that of LG Group. This resurgence is credited to the recovery in the chip industry, coupled with a decrease in demand for electric vehicles. In contrast, the market capitalization of LG Energy Solution witnessed a decrease to 89 trillion won from 118 trillion won over the past year. Similarly, LG Chem's market cap declined to 28 trillion won from 43 trillion won during the same period.
In stark contrast, SK hynix, a key player in SK Group's resurgence, saw its market value climb to 102 trillion won from 82 trillion won, underlining the chipmaker's pivotal role in SK Group's ascent to the second-largest conglomerate in South Korea by market capitalization.