Even as Samsung Electronics and SK hynix shares fall, Honam semiconductor stocks surge [Stock NOW]

[Financial News] As major semiconductor stocks such as Samsung Electronics and SK hynix came under pressure, Honam-based Kumho Electric rose in early trading on the 13th.
According to the Korea Exchange, as of 10:10 a.m. that day, Kumho Electric was trading at 12,760 won, up 15.27% from the previous trading day. At the same time, Kumho Construction was also up 2.91% from the previous day, at 13,790 won. While major semiconductor stocks broadly underwent a correction, buying appeared to be flowing into Honam-linked construction and infrastructure stocks.
Market participants believe that the renewed strong commitment expressed by SK Group Chairman Choi Tae-won to developing the Honam semiconductor cluster drove up stock prices. On the 9th, Choi visited Gwangju Military Airport, the site earmarked for the cluster, and said to the effect that, “Once the conditions are in place to build factories, we will build them as quickly as possible and in the greatest numbers possible.”
Two days later, on the 11th, Choi again stressed the need to move quickly at an event in Shanghai, China. The point was that domestic production capacity needed to be expanded without delay, as global competitors were speeding up capacity expansions. As his remarks were reported, perceptions spread that uncertainty surrounding the project’s progress had eased, apparently boosting investor sentiment.
Kumho Electric and Kumho Construction are representative companies of Gwangju and Jeonnam and have long been classified as stocks expected to benefit from the Honam semiconductor cluster. Expectations that regional construction firms and companies forming the region’s industrial base could benefit directly from the development of a large-scale industrial complex and the construction of infrastructure are driving buying.
[email protected] Han Yeong-jun Reporter