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S. Korea sees a receding stock market impacted by global factors

S. Korea sees a receding stock market impacted by global factors

Posted May. 19, 2022 08:05,   

Updated May. 19, 2022 08:05


High value Korean stocks of over one million won per stock are no longer found in the Korea’s contracting stock market, impacted by the US’ fiscal tightening and prolonged Ukraine crisis.

Based on closing prices on Korea Exchange on Wednesday, there were no shares priced more than one million won, in contrast to five shares exceeding one million won last year.

Shares of Taekwang Industries, which had the highest price in the market, closed at 990,000 won, 0.6% lower than the previous day. The price of the share dropped under the one million won threshold on May 10 and continues to stay under one million won, which is 23.8% lower than stock prices of June 7, last year (1.3 million won). LG H&H, whose share prices rose to 1.77 million last year, dropped to 670,000 won as of Wednesday, reflecting a 61.8% drop from its highest price last year. The drop in share prices were impacted by its cosmetic sales largely dependent on the Chinese market, which strengthened lockdown this year.

LG Chemical, which joined the ranks of high-priced shares in February last year, dropped to 512,000 won, losing nearly half of its stock prices when LG Energy Solutions, its battery arm business, spun off. Stock prices of Samsung Biologics and NC SOFT, which also briefly surpassed the one million won threshold last year, dropped 21.6% and 58%, respectively, compared to peak prices.

Min-Woo Park minwoo@donga.com