 |
Samsung Electronics Headquarters (Courtesy of Samsung Electronics) |
[Alpha Biz= Paul Lee] Seoul, September 28 – Securities firms in Korea continue to concentrate their research coverage on a limited number of large-cap companies, leaving the majority of small- and mid-cap stocks without regular analysis. Market experts warn that this imbalance increases the risk of retail investors relying on stock price movements rather than company fundamentals, making them more vulnerable to stock manipulation schemes.
According to financial information provider FnGuide, as of September 24, securities firms published a total of 22,161 research reports over the past year, covering 1,069 listed companies. This represents just 37.1% of the 2,879 companies listed across the KOSPI, KOSDAQ, and KONEX markets.
Coverage was also highly uneven. Only 60 companies received more than 100 reports in the past year—58 on the KOSPI and two on the KOSDAQ. Together, these 60 companies accounted for 8,275 reports, or 37.3% of the total. Samsung Electronics alone received 299 reports, followed by Hyundai Motor (221), SK hynix (210), Hyundai Mobis (200), and Naver (200). On the KOSDAQ, only SM Entertainment (121) and JYP Entertainment (109) surpassed the 100-report mark.
By contrast, most small- and mid-cap companies had little to no regular coverage. DI Dongil, a recent target of a high-profile KRW 100 billion stock manipulation scandal, received only four reports over the past year. The most recent report, published in late June, maintained a “Buy” rating with a target price of KRW 55,000, citing faster earnings improvement compared to peers and shareholder return measures such as buybacks and cancellations. However, the company’s share price plummeted following the stock manipulation revelations.
Analysts note that this concentration is driven by structural factors. Most research teams prioritize large-cap stocks with high market relevance, while securities firms often hesitate to issue negative opinions on potential corporate finance (IB) clients. As a result, small- and mid-cap investors face limited access to timely, fundamental analysis.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
