The number of so-called "emperor stocks" — shares trading above 1 million won — has climbed to a record high as the KOSPI's all-time-high rally pushed the index past 8,000 points intraday. With semiconductor, defense, and robotics-related stocks surging, market attention is now turning to the next candidates to join the elite group.
According to the Korea Exchange on Tuesday, 11 stocks on the KOSPI closed above 1 million won as of the 15th of this month. It marks the first time the number of emperor stocks on the KOSPI has surpassed double digits.
Current emperor stocks include Hyosung Heavy Industries at 3.745 million won, SK hynix (000660.KS) at 1.819 million won, Doosan at 1.614 million won, Samyang Foods at 1.444 million won, Korea Zinc at 1.426 million won, Samsung Biologics (207940.KS) at 1.419 million won, Hanwha Aerospace (012450.KS) at 1.216 million won, HD Hyundai Electric at 1.179 million won, SK Square at 1.098 million won, Taekwang Industrial at 1.011 million won, and Samsung Electro-Mechanics at 1.01 million won.
Two new stocks have joined the emperor club this month alone amid the KOSPI's steep ascent. Samsung Electro-Mechanics newly joined the group after closing at 1.029 million won on the 13th of this month. The stock, which traded in the 830,000 won range at the end of last month, has surged 24 percent so far this month. Expectations for expanded demand for multi-layer ceramic capacitors (MLCCs) used in AI servers, along with strong first-quarter earnings, have boosted investor sentiment.
SK Square also joined the ranks, closing at 1.089 million won on the 6th of this month. The gain reflects expectations for spillover benefits from the surge in its largest subsidiary, SK hynix.
As the rally continues, market attention is shifting to the next emperor stock candidates. LIG Nex1 Defense & Aerospace is currently considered the most likely contender. It closed at 834,000 won on the 15th of this month, the closest to the 1 million won threshold. Brokerages are focused on the potential surge in demand for missiles such as the Cheongung-II amid growing geopolitical risks in the Middle East.
According to FnGuide, LIG Nex1 Defense & Aerospace's average target price stands at 1,078,824 won, about 29 percent higher than the previous average target.
LG Innotek is also mentioned as a next emperor stock candidate. Although the stock currently trades around 732,000 won, target prices have been raised on expectations of increased production by its North American client and improving conditions in the substrate business. SK Securities recently raised its target price for LG Innotek to 1 million won, saying it offers "the most attractive valuation among large-cap IT stocks."
Hyundai Motor (005380.KS) is also extending its rally on expectations for its robotics business. The stock topped 770,000 won intraday for the first time on the 15th of this month. Investor sentiment has improved significantly after Boston Dynamics, a Hyundai Motor Group affiliate, recently released a video of its humanoid robot "Atlas."
Eugene Investment & Securities set a target price of 1 million won for Hyundai Motor, saying, "Along with rising hybrid vehicle sales, additional momentum is expected from software-defined vehicles (SDVs) and the humanoid robot business."
In addition, HD Hyundai Heavy Industries and Samsung SDI are also mentioned as next emperor stock candidates, with brokerage target prices exceeding 1 million won. Expectations for a shipbuilding boom and expanded orders are driving HD Hyundai Heavy Industries, while a recovery in electric vehicle demand and improving earnings prospects are seen as catalysts for Samsung SDI.
