Stock market influence of top 30 groups weakens

Amid a persistent slump in the stock market, the influence on the market of companies belonging to Korea`s top 30 business groups has weakened dramatically. Share prices of 46 percent of these companies remain below par value with the average growth rate of the share prices of the top 30 groups failing to match the market average.

The Korea Stock Exchange said Monday that out of 121 companies belonging to the top 30 groups, 56 or 46.3 percent had their common-stock prices hovering below face value as of last Friday.

In seven groups - Kohap, Kumho, Daewoo Electronics, Ssangyong, Hanwha, Hyundai Industrial Development and Construction and Hyundai Oilbank - the share prices of all their 16 affiliates were below par value. On the other hand, seven other groups - Shinsegae, Cheil Jedang, Pohang Iron and Steel Co., Hyundai Department Store, Hyosung, Taekwang Industrial Co. and Lotte - had share prices of all their 11 affiliates over par value.

The average share price of the top 30 group affiliates was 27,293 won as of Apr. 13, 7.5 percent down from 29,491 won at the beginning of this year; while the average share price of 699 listed companies rose 1.5 percent from 15,481 won to 15,708 won during the same period. This means that the market influence of large groups has weakened dramatically, analysts say.

Lee Jin leej@donga.com