Jeong Eun-bo, chairman of the Korea Exchange (KRX), speaks during a press conference with foreign media outlets in Seoul, Monday. Courtesy of KRX
The head of Korea's bourse operator assessed Monday that the current concentration in semiconductors is "natural," considering various factors, such as the operating profits of Samsung Electronics and SK hynix.
"I think (the market concentration) is a result of the natural price-setting process driven by supply and demand, taking into consideration various factors," Jeong Eun-bo, chairman of the Korea Exchange (KRX), said at a press conference with foreign media in Seoul.
The comments from the chief of Seoul's bourse operator came amid concerns over volatility in the local market, with the combined market capitalization of Samsung and SK hynix surpassing 50 percent of the total value of companies listed on the benchmark KOSPI.
"The price-to-earnings ratio (PER) based on the expected revenue of Samsung and SK hynix is set to be a bit shy of 7 to 8, while the figure for Micron Technology Inc. is over 10," he said.
