KOSPI has surpassed 3,000 points and continues its strong rally, which has led to the market capitalization of the listed securities market surpassing 500 trillion won this year. More than 200 stocks have entered the 'trillion club' with a market cap of over 1 trillion won.

On the 20th, the KOSPI surpasses the 3000 mark in the Seoul stock market. It has been 3 years and 6 months since December 2021. It is the second time that the KOSPI 3000 era occurs since the Korean stock market began its first transaction in 1956. After the market closes that day, the KOSPI closing price (3021.84) is displayed on the board in Hana Bank's dealing room in Jung-gu, Seoul./Courtesy of Yonhap News Agency

According to the Korea Exchange on the 21st, as of the 20th, the KOSPI market capitalization reached 2,471.8144 trillion won, setting a new record high. This figure represents an increase of 508.4854 trillion won compared to the end of last year (1,963.329 trillion won).

The KOSPI has shown a bullish trend, surpassing 3,000 points for the first time in 3 years and 6 months due to expectations for the Lee Jae-myung government's measures to boost the stock market. The index has risen on 12 of the 13 trading days this month, excluding one day on the 13th, recording a growth rate of 12.02%.

As of the previous day, there were 225 companies listed on the securities market with a market capitalization of over 1 trillion won, an increase of 25 companies (12.5%) compared to the end of last year (200 companies). This year, 31 new corporations have joined the trillion club, while 6 have exited.

Specifically, Hanwha Investment & Securities (market cap 1.47 trillion won), DAISHIN SECURITIES (1.019 trillion won), Mirae Asset Life Insurance (1.06 trillion won), PARADISE (1.334 trillion won), and Lotte Tour Development (1.037 trillion won) have recently joined the trillion club.

With expectations for the new government's stock market stimulus measures, the stock prices of financial companies have surged, leading many to enter the trillion club. Notably, Hanwha Investment & Securities has skyrocketed by 104% this year, doubling its market cap which was 721 billion won at the end of last year.

In contrast, six stocks, including LG CHEM preferred shares (825 billion won), LOTTE Fine Chemical (982 billion won), Dongwon Systems (907 billion won), DI Dongil (769 billion won), Sebang Global Battery (967 billion won), and Kumyang (633 billion won), have fallen out of the trillion club.

For the top 10 stocks in the KOSPI, all but two – LG Energy Solution and Hyundai Motor – saw an increase in their market caps compared to the end of last year.

However, the proportion of the KOSPI's total market cap varies by stock. SK hynix's market cap increased from 126.6 trillion won at the end of last year to 187.97 trillion won on the 20th of this month, increasing its share of the total KOSPI market cap from 6.5% to 7.6%, a rise of 1.1 percentage points.

The market share of Hanwha Aerospace also increased from 0.8% to 1.8% during the same period, while HD Hyundai Heavy Industries (1.3% → 1.6%) and Naver (1.6% → 1.7%) also saw their shares rise.

Conversely, Samsung Electronics' market cap is 352.218 trillion won, an increase of about 35 trillion won compared to the end of last year (317.592 trillion won), but its share of the total KOSPI market cap decreased from 16.2% to 14.2%, a drop of 2 percentage points. Additionally, Samsung Biologics (3.4% → 2.9%), LG Energy Solution [373220] (4.2% → 2.9%), and Hyundai Motor [005380] (2.3% → 1.7%) also saw their shares decrease.

Experts suggest that the recent sharp rise in the KOSPI may lead to a brief 'breather'. However, expectations for economic stimulus from the government's supplementary budget and other measures are creating a mood that, following a short-term adjustment, another upward trend is likely.