[Click eStock] "Hanil Cement and Others Expected to Benefit from Government Policies"

[Asia Economy Reporter Hyungsoo Park] Research Alme predicted that the government will strengthen inter-Korean economic cooperation following the results of the '21st National Assembly election.'

On the 17th, Choi Seonghwan, a researcher at Research Alme, said, "Attention is focused on the ruling party's general election pledges such as the construction of the 3rd new town in the metropolitan area, expansion of social overhead capital (SOC) investment, normalization of the Kaesong Industrial Complex, and resumption of Mount Kumgang tourism," adding, "As President Moon Jae-in's term approaches its end, the resumption of inter-Korean economic cooperation is expected to gain momentum."

The cement industry, having completed structural adjustments, is poised for a full-scale profit improvement. With the addition of policy benefits, corporate revaluation is expected to be possible.

Promising cement companies include Hanil Cement, Asia Cement, and Sungshin Cement. Among companies with an annual cement production of over 6 million tons, Choi predicted they will benefit from increased demand.

He explained, "The cement industry has a domestic demand ratio of over 95%, so it is greatly influenced by domestic construction policies," adding, "This year, with an increase in the SOC budget, expansion of projects exempt from preliminary feasibility studies, and large-scale projects such as the construction of the 3rd new town, a recovery in the cement industry is expected."

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