The Korean stock market's KOSPI index recovered the 8000 level on July 3, closing at 8088.34, but the number of stocks with market capitalization exceeding 1 trillion won declined to 314 from 405 on April 29 when KOSPI stood at 6690.90, according to Korea Exchange data released July 5. The decline occurred as the index rally concentrated in large-cap semiconductor stocks including Samsung Electronics and SK Hynix. The reduction in '1 trillion club' membership reflects market polarization, with gains limited to a small number of major corporations despite the broader index's 2400-point advance over the two-month period.
1 Trillion Club Membership Drops 22.5% Despite KOSPI Gains
The domestic stock market's '1 trillion club' reached a record 405 stocks (including preferred shares) on April 29, marking the first time membership exceeded 400. On July 3, despite KOSPI closing at 8088.34, the number of stocks with market capitalization above 1 trillion won totaled 314, consisting of 235 from the main board, 78 from KOSDAQ, and 1 from KONEX. The main board saw 1 trillion club membership decrease from 267 stocks on April 29 to 233 stocks on June 22 when KOSPI recorded its closing high of 9114.55, representing a reduction of 34 stocks despite the index rising more than 2400 points.
Samsung Electronics and SK Hynix Lead Market Capitalization Rankings
Samsung Electronics and SK Hynix ranked first and second in market capitalization at 1809.4 trillion won and 1728.3 trillion won respectively. SK Square followed with 209.7 trillion won, Samsung Electronics preferred shares at 166.9 trillion won, Samsung Electro-Mechanics at 148.6 trillion won, Hyundai Motor at 100.7 trillion won, and LG Energy Solution at 84.8 trillion won. Bon Systems was the sole KONEX stock in the 1 trillion club with a market cap of 1.0393 trillion won, calculated using 'gise' pricing where bid prices serve as closing prices when no trades execute.
KOSDAQ 1 Trillion Club Membership Falls 43% in Two Months
The decline proved more pronounced in the KOSDAQ market. KOSDAQ 1 trillion club membership dropped from 137 stocks on April 29 to 78 stocks on July 3, representing a 43% decrease over two months. The proportion of KOSDAQ stocks within the 1 trillion club fell to 24.84%, the lowest level since December 1 of the previous year when the ratio stood at 24.44%.
10 Trillion Club Shows Smaller 10.1% Decline
The '10 trillion club' of stocks with market capitalization exceeding 10 trillion won experienced less change compared to the 1 trillion club. Membership in the 10 trillion club decreased 10.1% from 79 stocks on April 29 to 71 stocks on July 3, a reduction of 8 stocks. This smaller decline of 10.1% compared to the 1 trillion club's 22.5% reduction (91 stocks) indicates the recent domestic stock market rally concentrated in select large-cap stocks.
Yuanta Securities Analyst Forecasts Continued Market Volatility
Lee Jae-won, researcher at Yuanta Securities, stated that "market volatility will continue as the market cap proportion of top large-cap stocks grows further following the listing of Samsung Electronics and SK Hynix leveraged ETFs." The concentration in major semiconductor stocks including Samsung Electronics and SK Hynix drove KOSPI gains while internal market polarization intensified.
FAQ
How many stocks were in Korea's 1 trillion won club on July 3?
On July 3, the 1 trillion club included 314 stocks total: 235 from the main board, 78 from KOSDAQ, and 1 from KONEX, according to Korea Exchange data released July 5.
Why did the 1 trillion club membership decrease despite KOSPI rising to 8000?
The decline occurred because the KOSPI rally concentrated in large-cap semiconductor stocks including Samsung Electronics and SK Hynix, with limited participation from other companies despite the index advancing more than 2400 points from April 29 to July 3.
