Stock price changes show Korea's growing dependence on IT sectorUpdated: 2014-08-05 06:28:58 (KST)
The benchmark KOSPI broke the 2,080 mark last week for the first time in three years.
But that's not good news for everybody,.. as data analyzed by corporate tracker CEO score, show that former heavyweights in the traditionally strong petrochemical, steel and shipbuilding sectors are faring poorly.
They used to be among the main building blocks of the Korean economy .. but their market cap has slumped in the past three years.
Market cap for IT companies, on the other hand, jumped by the biggest margins.
Market superstar Samsung Electronics which take up about a third of the overall market capitalization rose by over sixty-percent during the period, and world's second biggest memory chipmaker SK Hynix and Korea's leading online portal operator Naver Corp both saw their market cap jump by over one hundred percent.
But the market value of POSCO, Korea's largest steelmaker, shrank by nearly 27-percent (more than a quarter) during the period, while that for the world's biggest shipbuilder, Hyundai Heavy Industries, dwindled by over sixty percent.
This has naturally led to a shift in the proportion of market cap by each industry.
While the IT, automobile, petrochemicals and shipbuilding and steel each that took up a similar share of the KOSPI market cap back in 2011, the market cap is now mainly led by IT sector which accounts for more than a quarter of the overall market .
Companies in the petrochemical business saw market cap shrink by over half,.. to six-percent.
Yoo Li-an, Arirang News.
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