“It went straight to limit-up even amid all this—should I still buy now?” ‘Honam semiconductor theme stocks’ erupt in a blazing rally

[Financial News] SK Group Chairman Chey Tae-won made an unexpected visit to the site earmarked for the Honam semiconductor cluster and declared his determination to press ahead with investment at pace, dismissing recent rumors in some parts of the market that the investment would be scrapped. After Chey suggested the possibility of building the cluster in parallel with the Yongin semiconductor cluster to meet global demand—and even starting construction early—regionally based infrastructure and development stocks, which had been under pressure amid questions over whether the investment would materialize, all turned sharply higher.

According to business sources on the 12th, Chey visited the ammunition depot site at Gwangju Military Airport on the 9th and toured the planned site of the Honam Semiconductor National Industrial Complex. It was the first time an SK chairman had personally visited the site.
At the site, Chey said, “Semiconductor demand is growing rapidly, so we need to bring forward the pace of supply even more,” adding, “If the conditions are in place, we’ll build as much as possible at the fastest pace.” On the timing of construction, he said, “We need to study it further, but it looks like circumstances may arise that make it necessary to build even in parallel with Yongin,” and signaled his intention to start early: “Even if the national plans for electricity and water supply are delayed somewhat, we’ll begin construction first if we can get the timing right.” He also explained that the project could exceed the scale of the two fabs currently planned—about two-thirds the scale of Yongin—and “could certainly grow further if more land and demand are secured.”
Chey’s push to move quickly was reaffirmed at the International Business Advisory Council (IBAC), held in Shanghai, China, on the 11th. Chey stressed the urgency of expanding production capacity, saying, “If U.S. company Micron or Chinese companies expand capacity faster than we do, the Korean semiconductor industry’s share of the global market will inevitably decline.”

After the conglomerate chairman’s firm commitment to investment became known, stocks based in Gwangju and South Jeolla Province that were seen as beneficiaries of the “Honam semiconductor” theme surged across the board on the 12th.
On the KOSPI, regional leader Kumho Electric surged to the daily price limit (29.93%) and closed limit-up at 11,070 won. Kumho Engineering & Construction (20.29%) and Kumho Engineering & Construction preferred shares (12.75%) also recorded sharp intraday gains of around 20%. On the KOSDAQ, engineering firm Yooshin (29.87%) went straight to limit-up, while regional construction and building-materials stocks including Namwha Construction (13.18%), Dongyang Pile and Dasco also rose in tandem. These stocks surged after the government announcement in June, then continued to fall amid rumors the investment would be scrapped and questions over whether it would materialize. Chey’s visit to the site has now given them strong momentum for a rebound.

By contrast, SK Hynix, which is responsible for carrying out the large-scale capital expenditure (CAPEX), moved in the opposite direction. The short-term funding burden and concerns that semiconductors may have passed their peak combined to send the stock lower for a fourth consecutive trading day; it fell 4.52% again that day, slipping to around 1.6 million won. Analysts say the divergence in share-price performance reflects the opposing effects of production-base diversification, which could help defend market share over the medium to long term, and the short-term financial burden of massive capital spending.
[email protected] Moon Young-jin Reporter