Korean Media: Two South Korean Companies in the $1 Trillion Club

In the U.S. stock market, Apple was the first company to surpass a market capitalization of $1 trillion (approximately 150 trillion KRW). This milestone was achieved in 2018, 42 years after Steve Jobs founded the company, following an explosive growth of its ecosystem centered around the iPhone and the App Store. At that time, Apple’s market value even exceeded the annual GDP (gross domestic product) of countries such as the Netherlands, Switzerland, and Saudi Arabia, which were ranked around 17th globally.

On the 27th, SK Hynix saw its stock surge by 9.3%, successfully joining the "$1 Trillion Club." Just hours earlier, U.S.-based semiconductor firm Micron had also joined, while Samsung Electronics had already become a member not long before. This marks a rapid advancement by semiconductor companies. The symbolic significance of reaching $1 trillion is profound. South Korean firms have finally overcome the long-standing "Korean discount" phenomenon—where Korean products were consistently undervalued—and entered what was once exclusively an American-exclusive $1 trillion club.

Globally, only 14 companies currently have a market capitalization exceeding $1 trillion, with most belonging to the AI alliance. Leading the list is NVIDIA ($5.2 trillion), followed by Alphabet, Apple, Microsoft (MS), and Amazon—the top five all being major U.S. tech giants. Beyond Saudi Aramco and Warren Buffett’s Berkshire Hathaway, Taiwan’s TSMC, U.S. companies Broadcom and Micron, along with South Korea’s Samsung Electronics and SK Hynix—ranked 11th and 12th globally—are almost entirely part of this AI semiconductor coalition.

Looking back at the U.S. stock market, in 1901, U.S. Steel became the first company to exceed $1 billion in market value; in 1955, General Motors (GM) surpassed $10 billion for the first time. In 1995, General Electric (GE) crossed the $100 billion threshold; in 1999, Microsoft (MS) broke through $500 billion, followed by Apple’s entry into the $1 trillion club and NVIDIA’s leap to over $5 trillion. From steel (U.S. Steel) to automobiles (GM), then to home appliances and finance (GM), personal computer software (MS), smartphones (Apple), and now AI semiconductors (NVIDIA)—this evolution clearly reflects the trajectory of human civilization and industrial development.

Currently, only South Korea and Taiwan among Asian economies are listed in the $1 Trillion Club. China, India, and Japan are absent from the list. Some forecasts suggest that by 2027, Samsung Electronics’ profits will surpass the combined total profits of Japan’s top 100 companies. South Korea has thus become the only country outside the United States with two companies valued at $1 trillion. Meanwhile, former market giants like GE, ExxonMobil, and Nokia have long since fallen from grace—proving there are no permanent winners in the stock market. Today, without semiconductors produced in South Korea, the global AI revolution cannot proceed. This is precisely the result of enduring crises and continuously making bold investments. We must cherish and further strengthen this achievement.

Source: Chosun Ilbo

Original article: toutiao.com/article/1866414263554055/

Disclaimer: The views expressed in this article are solely those of the author.