Key S. Korean firms outstrip Japanese rivals in market cap

South Korea's bellwethers in six major industries have outshined Japanese rivals in terms of market capitalization as they have made big strides in global markets, data showed Tuesday.

According to the data by Shinhan Investment Corp., leaders in South Korea's semiconductor, display, refinery, construction, steel, and shipbuilding industries had larger market caps than their Japanese counterparts, based on Friday's closing price.

The market cap of Samsung Electronics Co., the world's leading chipmaker, came to 198.55 trillion won ($175.7 billion), outpacing Japan's Toshiba Corp., which registered 16.59 trillion won.   

South Korean display giant LG Display Co. had a market cap of 9.3 trillion won, far outshining Japan's Sharp Corp., whose market cap crashed to 3.35 trillion won from 11.25 trillion won as of end-December last year.

Leading steelmaker POSCO's market cap reached 33.5 trillion won, with Nippon Steel Corp., Japan's No. 1 steelmaker, recording a market cap of 16.3 trillion won, according to the data. 

Analysts said that helped by stellar performances in overseas markets, South Korean firms have been able to attract investments, while Japanese companies have been languishing in a prolonged economic slowdown.

"While the outlook for Japanese firms is downbeat, South Korean companies have been boasting rapid growth, but the situation can change anytime," said a researcher at the Samsung Economic Research Institute.

South Korean firms in other industries, including top automaker Hyundai Motor Co. and its smaller affiliate Kia Motors Corp., are also catching up with Japanese counterparts fast, the data showed.

(Yonhap News)