The number of "emperor stocks" — shares trading above 1 million won — has surged amid the KOSPI's rally, significantly reshaping Korea's stock market landscape and raising the possibility of stock splits to improve investor accessibility.
Emperor Stocks Grow from 4 to 9; Hyosung Heavy Industries Tops the List
According to the Korea Exchange on Wednesday, the number of stocks trading above 1 million won based on the previous day's closing price has grown from four at the end of last year to nine currently.
At the end of last year, emperor stocks were limited to just four names: Hyosung Heavy Industries, Samsung Biologics (207940.KS), Korea Zinc, and Samyang Foods. This year, Doosan, Hanwha Aerospace (012450.KS), SK hynix (000660.KS), HD Hyundai Electric, and Taekwang Industrial have joined the ranks.
High-priced stocks have rapidly increased as the KOSPI continues its daily rally.
The most expensive stock is Hyosung Heavy Industries by a wide margin. Hyosung Heavy Industries closed the previous session at 4.228 million won, up 316,000 won or 8.08%, marking the highest price among domestically listed companies. Analysts attribute the rise to expectations of expanding demand for power equipment and transformers.
The high-priced stock lineup continues with Doosan (1.705 million won), Korea Zinc (1.629 million won), Samsung Biologics (1.485 million won), Hanwha Aerospace (1.465 million won), and SK hynix (1.447 million won).
Samyang Foods (1.316 million won), HD Hyundai Electric (1.299 million won), and Taekwang Industrial (1.19 million won) also remain in the 1-million-won range.
"I'm Next" — Emperor Stock Candidates Line Up; What About Retail Accessibility?
The pool of emperor stock candidates is also growing rapidly. SK Square rose to 998,000 won during intraday trading, approaching the 1-million-won threshold, while LIG Nex1 Defense & Aerospace recently climbed to 1.118 million won intraday, raising expectations of re-entry.
Samsung Electro-Mechanics is also mentioned as the "next emperor stock," having more than tripled this year from the 250,000-won range to the 900,000-won range.
The market expects that if the stock rally continues, more emperor stocks are likely to emerge.
The issue is accessibility. Since Korean stocks are traded in single-share units, the higher the price, the greater the barrier for individual investors. For instance, buying just one share of Hyosung Heavy Industries requires more than 4 million won.
Stocks in the 1-million-won range also pose a considerable burden in terms of portfolio diversification. For this reason, some point out that "the expansion of high-priced stocks could alienate individual investors from the market."
Stock Split Expectations: Could Another "People's Stock" Emerge?
Stock splits are being discussed as an alternative to ease this burden.
A stock split lowers the per-share price without changing corporate value, thereby improving investor accessibility and boosting trading activity.
A representative example is Samsung Electronics (005930.KS). Once an emperor stock trading in the 2-million-won range, Samsung Electronics became a "people's stock" as individual investors flooded in following its 50-for-1 stock split in 2018. Lotte Chilsung Beverage and Lotte Confectionery also lowered their price thresholds through stock splits.
