Hanwha outpaces chaebol rivals in market cap growth
As of Aug. 1, the market capitalization of Hanwha Group and its 12 listed subsidiaries on the nation's main bourse, the Kospi exchange, skyrocketed 177.5 percent to 120.7 trillion won ($86.9 billion) compared to the end of 2024.
This marks the highest growth rate among South Korea's 10 biggest corporate groups. Following Hanwha, HD Hyundai's market cap grew 51.7 percent and SK Group's rose 35.7 percent in the same period, respectively.
Industry watchers indicated that Hanwha Group's surge in corporate value is primarily driven by its defense and shipbuilding affiliates. As of Aug.1, the combined market cap of Hanwha Aerospace, Hanwha Ocean and Hanwha Systems achieved 95.7 trillion won.
Notably, Hanwha Aerospace saw its stock price soar by 245.1 percent, reaching 939,000 won on Aug. 1, up from 326,000 won at the close of last year. The defense subsidiary has been accelerating its push into the rapidly emerging US defense industry. It is vying for the US Army's self-propelled howitzer (SPH-M) program, with plans to invest about $1 billion by 2028 to set up a production facility for 155 millimeter artillery propellant charges in the US.
Hanwha Ocean's stock price rose by 200.1 percent, from 37,350 won to 117,400 won over the same period, following the news of its pivotal role in aiding the Korean government's recent tariff negotiations with the US. In particular, it surpassed tech giant Naver to rank 13th in market cap at the company level with 36 trillion won. When Hanwha Group acquired Hanwha Ocean — formerly Daewoo Shipbuilding & Marine Engineering — in 2023, the company was valued at 3 trillion won.
Hanwha Ocean, the only Korean shipbuilder with a shipyard in the US, has been in the spotlight for providing leverage for Korea in offering a strategic advantage in negotiations to lower tariffs on Korean exports from 25 percent to 15 percent.
Underscoring the influence of the US in the global defense industry, Hanwha Group established Hanwha Global Defense in Washington in May to oversee international operations for Hanwha Aerospace, Hanwha Ocean and Hanwha Systems.
'While it is disappointing that we lost an FTA advantage, major companies like Hanwha partly contributed to completing the trade negotiations with the US within the deadline of (Aug. 1),' said Kim Dae-jong, a business professor at Sejong University.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
14 minutes ago
- Korea Herald
Naver acquires Spain's top C2C platform Wallapop
Korean internet giant Naver said Tuesday that it has acquired a controlling stake in Spain's largest consumer-to-consumer platform, Wallapop, in a move to strengthen its foothold in the European digital marketplace. Naver said it acquired an additional 70.5 percent stake in Wallapop for 377 million euros ($436 million), bringing its total ownership to 100 percent. The Korean tech firm initially invested 115 million euros in 2021 and followed up with another 75 million euros in 2023. Wallapop boasts over 19 million monthly active users and facilitates peer-to-peer transactions across a wide range of categories, from everyday goods and electronics to used vehicles. The company has steadily grown its presence in the Iberian Peninsula and is expanding into southern European markets, including Italy and Portugal. The two companies have explored collaboration through technological integration, and Naver said it decided to acquire full ownership to unlock deeper synergy and accelerate growth. 'Wallapop has emerged as a formidable player in Spain's C2C landscape,' said Naver CEO Choi Soo-yeon. 'With the latest acquisition, we plan to combine Naver's technology, spanning search, advertising, payments and artificial intelligence, with Wallapop's user-friendly service to elevate the platform's capabilities and value proposition.' Naver has been actively investing in Europe since 2016 through funds managed by Korelya Capital, a venture capital firm established by Fleur Pellerin, former French Minister for Digital Economy. The company said it intends to use Wallapop as a strategic hub to deploy its technological expertise and e-commerce infrastructure across the continent. It will mark a significant step in Naver's global C2C expansion, adding Europe to its growing portfolio of platforms in North America, Korea and Japan, including Poshmark, Kream and Soda. 'With Wallapop's extensive product listings and rich storytelling potential, we aim to deepen our understanding of European consumer behavior and enhance the diversity of data in our AI ecosystem — ultimately strengthening Naver's global competitiveness,' Choi added.
Korea Herald
an hour ago
- Korea Herald
Hanwha Life brings back dual CEOs for AI, global push
Hanwha Life Insurance's new co-CEOs, Vice Chair Kwon Hyeuk-woong and President Lee Kyung-keun, officially took office on Tuesday, reinstating a dual leadership structure for the first time in six years. Their appointments were approved at a temporary shareholders' meeting and board session held the same day. The top executives will lead the Korean insurer with independent representation rights. In a letter to employees, Kwon and Lee set a vision to transform Hanwha Life into a 'life solutions partner,' offering services that go beyond traditional insurance and are tailored to each stage of a customer's life. To achieve this, the new CEOs emphasized the need to strengthen artificial intelligence capabilities, calling AI essential for navigating the tech-driven transformation of the financial sector. 'As AI accelerates the arrival of a hyper-personalized era, the insurance industry must also deliver individualized solutions based on a deep understanding of each customer's life,' they said. The two leaders also stressed their commitment to expanding Hanwha Life's global business. 'We will continue pursuing our vision of becoming a global, comprehensive financial group; advancing our business in East Asia, including Indonesia, where we have established a full-service financial system; and expanding our presence in the US, where we've entered the brokerage sector,' they said. This year, Hanwha Life made a strategic investment in Indonesia's Nobu Bank and acquired a controlling stake in US brokerage firm Velocity Clearing. Both deals mark milestones for both the company and the Korean insurance industry as a whole. On Tuesday, the co-CEOs visited all 30 floors of the company's headquarters in Seoul's Yeouido district, greeting and encouraging the firm's 1,800 employees. The leadership change follows the departure of former CEO Yeo Seung-joo, who is moving to Hanwha Group to head its management support division. The dual CEO structure returns after its suspension in 2019, when Yeo became the sole CEO. Kwon, formerly CEO of Hanwha Ocean, is expected to oversee overall operations, while Lee, previously CEO of Hanwha Life Financial Services — a wholly owned subsidiary responsible for the firm's sales force — will focus on insurance strategy and core business development.
Korea Herald
an hour ago
- Korea Herald
Seoul shares spike over 1.6% on US rate cut hopes
South Korean stocks closed sharply higher Tuesday amid heightened expectations the US Federal Reserve may soon pivot to monetary easing following an employment shock. The local currency was trading lower against the US dollar. The benchmark Korea Composite Stock Price Index climbed 50.25 points, or 1.61 percent, to close at 3,198.00. Trade volume was a little slim at 270.8 million shares worth 10.9 trillion won ($7.85 billion), with winners far outnumbering losers 684 to 190. Foreigners and institutions net purchased 291.9 billion won and 94.5 billion won worth of local shares, respectively, while retail investors net sold 471.8 billion won. The KOSPI had opened in positive terrain, tracking overnight gains on Wall Street sparked by hopes the Fed may begin cutting its key rate in September to support the economy. The Dow Jones Industrial Average closed 1.34 percent higher on Monday, with the tech-heavy Nasdaq composite climbing 1.95 percent and the S&P 500 rising 1.47 percent. Such hopes were fueled after the US Bureau of Labor Statistics issued a jobs report, which showed the world's largest economy only added 73,000 jobs in July, below the market projection of a 100,000 job gain. "The Fed has been keeping its rate unchanged, citing the steady employment market, but the situation is different now," said Lee Kyoung-min, an analyst at Daishin Securities. Lee Jae-won, an analyst at Shinhan Securities, said investor sentiment was also improved on news reports the ruling bloc may reconsider its push for a tax revision aimed at raising taxes on corporations and stock investors. Market bellwether Samsung Electronics closed 0.29 percent higher at 69,900 won, and its chipmaking rival SK hynix gained 2.13 percent to 263,500 won, reflecting US chip giant Nvidia's 3.62 percent increase Monday. Leading battery maker LG Energy Solution jumped 2.93 percent to 386,500 won, and its smaller rival Samsung SDI shot up 10.22 percent to 213,500 won. Financial shares were particularly bullish, with KB Financial spiking 3.69 percent to 112,400 won and Shinhan Financial surging 3.19 percent to 68,000 won. Major shipbuilders also finished strong, with Hanwha Ocean climbing 1.57 percent to 116,100 won, and HD Korea Shipbuilding shooting up 5.63 percent to 356,500 won. Bio firm SK Biopharm skyrocketed 15.92 percent to 111,400 won on the back of record second quarter earnings driven by strong sales of its new epilepsy medication Xcopri. The state-run Korea Electric Power Corp. increased 2.15 percent to 38,300 won, and defense powerhouse Hanwha Aerospace soared 2.45 percent to 961,000 won. Auto and IT shares were among the few losers. Top automaker Hyundai Motor went down 0.24 percent to 210,500 won, and its sister Kia lost 1.36 percent to 101,400 won. Kakao, the operator of the country's dominant mobile messenger, slid 1.26 percent to 54,700 won, and top internet portal operator Naver dipped 0.22 percent to 232,000 won. The local currency was quoted at 1,388.3 won against the greenback at 3:30 p.m., down 3.1 won from the previous session. (Yonhap)
