Many Stocks Still Languish After Financial Crisis Woes

Share prices of about one-fifth of the companies listed on the Korea Stock Exchange are lower than in the 1997-98 foreign exchange crisis due to financial problems and poor business performance, analysts said Friday.

The Korea Composite Stock Price Index hit 628.42 points on Wednesday, up 124 percent from 280 on June 16, 1998, when the Kospi hit its last low point. Among 486 listed firms, excluding those whose capital has been written down or trading put under supervision, 376 have gained in price. Values of 110 stocks, or 23 percent of the total, have declined.

Brokerage issues soared by 337.2 percent on average. The electronics sector jumped 212.3 percent. But investment banking stocks tumbled 83 percent.

Hankuk Electric Glass Co. recorded the highest growth, 1661 percent. The firm took the lead position on the global market, since it was acquired by a Japanese firm.

Affiliates of the Hyundai Group, suffering liquidity crises, saw their share prices tumble for the period. Hyundai Elevator, Hynix Semiconductor, Hyundai Merchant Marine plunged by half. Investment bank shares, such as Tong Yang-Hyundai Investment Bank and Korean French Banking, also plunged since their competitiveness deteriorated compared with other financial institutions.

"Share prices of the firms thatfailed in financial structure reform and reorganization have tumbled," said an analyst at SK Securities.

by Rah Hyun-cheol