Hanwha

SEOUL, Oct. 17 (UPI) — Samsung Electronics and SK hynix emerged as the biggest winners on the Seoul bourse during the third quarter, thanks to a strong semiconductor market, according to Korean consultancy CXO Institute on Friday. The two firms are the world’s top two memory chipmakers.

During the July-to-September period, the market capitalization of Samsung Electronics surged by more than $100 billion, maintaining its position as South Korea’s most valuable company. SK hynix followed with an increase of $28.5 billion.

Riding on the mounting global demand for weapons, Korea’s leading defense company, Hanwha Aerospace, ranked third with a $12 billion gain, followed by battery maker LG Energy Solution with $8.3 billion and shipbuilder Hanwha Ocean with $6.7 billion.

“During the third quarter, the South Korean stock market was bullish. In particular, sectors such as semiconductors, shipbuilding, rechargeable batteries and biopharmaceuticals did well,” CXO Institute chief Oh Il-sun told UPI.

“The biggest winners were Samsung Electronics and SK hynix. As the memory chip market remains hot, the two corporations are expected to cruise well during the remainder of this year, too,” he added.

Indeed, Samsung Electronics and SK hynix saw their share price further rise by 16.7% and 30.2% this month, respectively.

As a result, Samsung Electronics Chairman Lee Jae-yong’s stock holdings topped $14 billion this month for the first time to solidify his status as the country’s wealthiest businessman.

He has shares in seven Samsung subsidiaries, including Samsung Electronics, Samsung C&T, Samsung SDS and Samsung Life Insurance.

Sogang University economics professor Kim Young-ick cautioned that the market may face a correction phase in the short term.

“In consideration of nominal gross domestic products, currency circulation and export data, I think that the stock market, led by Samsung Electronics, may enter a period of adjustment in the fourth quarter,” Kim said in a phone interview.

“As Samsung Electronics and SK hynix are projected to post strong results next year, however, the upward trend is likely to continue in the medium term,” he said.

Another standout performer was Hanwha Group, as two of its affiliates made the top-five list. The combined market capitalization of the conglomerate’s listed units more than tripled this year from $28.8 billion to $89.6 billion as of the end of last month.

As the figure nears $100 billion mark, Hanwha Chairman Kim Seung-youn encouraged its units to become global leaders in their respective fields.

“With the sense of responsibility that comes from being a national representative company, we must take the lead in every field,” Kim said his anniversary message to employees earlier this month.

“We are carrying out large-scale projects in various parts of the world, including North America, Europe, and the Middle East, in segments such as defense, shipbuilding and energy,” he said.

Biggest losers: Doosan Enerbility, Kakao units

In contrast, South Korea’s top heavy industry company, Doosan Enerbility, was the biggest loser, as its market capitalization fell by $2.6 billion during the third quarter, chased by online game publisher Krafton, down $2.4 billion.

Kakao Pay and Kakao Bank also languished by losing $2.2 billion and $2.1 billion, respectively, while the country’s largest contractor, Hyundai E&C, rounded out the bottom five with a $1.9 billion drop.

“In the third quarter, many companies in the construction, telecom, game, entertainment and retail sectors struggled. Oh said. “Of note is that two Kakao subsidiaries were among the underperformers.”

Once hailed as a next-generation online platform, Kakao aggressively expanded into multiple industries, but has experienced growing challenges in recent years.

Its founder Kim Beom-su, also known as Brian Kim, faces legal risks as the prosecution sought a 15-year prison term for him in late August.

Kim has been accused of being involved in the stock price manipulation of K-pop management agency SM Entertainment in 2023 to block a takeover attempt by rival company HYBE.

Kim has denied the allegations. He resigned from Kakao’s top decision-making council early this year, but remains as its largest shareholder.

Oct. 14 (UPI) — China on Tuesday blacklisted five U.S. subsidiaries of South Korean shipmaker Hanwha Ocean, escalating the trade row between Beijing and Washington.

The countermeasures prohibit Chinese entities and individuals from engaging in business with Hanwha Ocean America in Houston, Texas; Hanwha Ocean USA in San Diego, Calif.; Hanwha Ocean Defense Systems in Norfolk, Va.; Hanwha Ocean Marine Engineering in New York City, N.Y.; and Hanwha Ocean Procurement Services in Bridgeport, Conn.

Beijing’s Commerce Ministry said the companies were blacklisted to counter actions the United States has taken against China targeting its maritime, logistics and shipbuilding sectors.

“These subsidiaries have assisted and supported relevant U.S. government investigations and actions, thereby endangering China’s sovereignty, security and development interests,” the ministry said in a statement.

China’s Ministry of Transport is also charging U.S.-linked vessels special port fees.

The countermeasures were announced as the first phase of fees the United States is leveling against China’s ship industry is to go into effect following findings of an April 2024 investigation launched by the U.S. Trade Representative under the previous Biden administration into China’s alleged unfair practices in the maritime, logistics and shipbuilding sectors.

The investigation was launched at the behest of five national labor unions accusing China of employing non-market policies far more aggressive and interventionist than employed by any other country in an effort to dominate the global shipbuilding, maritime and logistics sectors.

As remedy, the U.S. Trade Representative in March proposed services fees and port-entry fees against Chinese-origin ships, effective Tuesday.

A spokesperson for China’s Ministry of Commerce alleged to reporters Tuesday that the United States’ action “severely violates” World Trade Organization rules and “breaches the principle of equality and mutual benefit” of a 1980 agreement between Beijing and Washington concerning maritime transport cooperation.

“China has repeatedly express its strong dissatisfaction and firm opposition,” the spokesperson said, while accusing the United States of being unwilling to cooperate with Beijing on the matter.

“China’s countermeasures are necessary acts of passive defense and are aimed at maintaining the legitimate rights and interests of Chinese industries and enterprises, as well as the level playing-field of the international shipping and shipbuilding markets,” the spokesperson said.

“It is hoped the U.S. will face up to its mistake, move with China in the same direction and return to the right track of dialogue and consultation.”

U.S.-China trade relations, which deteriorated sharply during Trump’s first term, have further strained under his current administration, which has repeatedly imposed tariffs on Chinese goods that are being challenged in U.S. courts and at the World Trade Organization.

The two countries have been in a trade squabble since last week when Beijing’s Commerce Ministry announced tightened export restrictions on rare earth items and materials. In response, Trump announced a 100% tariff threat on his Truth Social media platform. China, whose imports are currently subject to a 30% tariff, responded by threatening to retaliate.

The back and forth comes after representatives from Washington and Beijing held trade talks in Beijing last month with prospects of further negotiations continuing this month in South Korea.

However, whether those discussions will take place on the sidelines of the Asia-Pacific Economic Cooperation forum in Gyeongju remains unclear.