Electric Scooter-Related Stocks Enjoy Double Boost from Untact Expansion and Favorable Legislation

[Asia Economy Reporter Ji-hwan Park] Recently, the stock prices of electric scooter manufacturers have surged sharply due to the spread of untact culture and the easing of related regulations.

According to the Korea Exchange on the 11th, Alton Sports' stock price closed at 4,165 KRW the previous day. This marks a 147% increase compared to 1,683 KRW at the beginning of the year. The rise this month alone reached 42.9%.

In the case of Samchuly Bicycle, the stock closed at 11,600 KRW the previous day, representing a 111% increase from 5,500 KRW at the start of the year. The growth rate in June alone is also in the 30% range.

The biggest factor behind the recent price trends of these stocks is the amendment to the Road Traffic Act, passed by the National Assembly plenary session on the 20th of last month, which allows personal mobility devices to use bicycle lanes.

According to the amendment, among motorized bicycles such as electric scooters, those with a maximum speed of 25 km/h and a total weight under 30 kg, similar to electric bicycles, are newly defined as "personal mobility devices" and are permitted to use bicycle lanes. It is also possible to operate electric scooters without a separate license.

The spread of the novel coronavirus disease (COVID-19) has contributed to the expansion of untact culture, creating an atmosphere where people avoid crowded places. As a result, many have refrained from using crowded public transportation such as buses and subways and increased demand for single-person mobility devices for short distances.

In fact, the popularity of electric scooter rental services is also rising significantly. According to big data analytics firm IGAWorks, users of electric scooter sharing services, which had slightly decreased from late April to early May, have increased by more than 20% since the second week of May.

This content was produced with the assistance of AI translation services.