The state-run Korea Electric Corp.(KEPCO) leaped in its market capitalization on the local bourse less than one month after signing a jaw-dropping 10.55 trillion won (US$9.88 billion) land deal, outdoing Hyundai Motor Co. to become the third-biggest player on the KOSPI, data showed Tuesday. 

A consortium led by Hyundai Motor Co. snatched the site of KEPCO's Seoul headquarters through a bidding on Sept. 18 with a price tag of nearly triple the appraised price.

Following the deal, KEPCO's shares have jumped on growing expectations for earnings and dividend payouts, with the firm rising from seventh to third with a market capitalization of 30.2 trillion won, according to data by Korea Exchange.

KEPCO sold the land to move its headquarters to Naju, 350 kilometers south of Seoul, in November as part of the government's plan to relocate state-run companies for balanced national development. The land sale is expected to help the state-run company's efforts to cut its debt of 107.4 trillion won.  

Hyundai Mobis, Hyundai's auto parts unit taking part in the consortium, slipped from the third place to No. 7 with a market value of 24.6 trillion won as investors continued to sell off its shares in past weeks. 

"Hyundai Mobis' shares plunged 21 percent compared to the price in early April despite the stable earnings prospects due to corporate governance issues and the KEPCO property deal," Park In-woo, an analyst at Mirae Asset Securities, said. "Its price-to-book ratio is as low as the level during the global financial crisis."

Samsung Electronics, the world's largest handset maker, was the formidable market leader with 163.2 trillion won in market cap despite the recent slump, amounting to 12.73 percent of the total market value.

Hyundai Motor, whose shares tumbled due to foreigners' sell-off following the land auction, ranked second with 39.3 trillion won. 

SK hynix, the world's second-largest chipmaker, took one step back to come in fourth on the grim outlook for the global semiconductor industry. (Yonhap)