Wind-Powered Stocks on the Rise... Soaring with the Green New Deal

[Asia Economy Reporter Oh Ju-yeon] Wind power-related stocks surged sharply on expectations for the Green New Deal announced by the government. In particular, since the 'Korean New Deal Fund' was established this month, stock prices have been soaring on the prospect that large-scale government investment and institutional improvements will provide new opportunities across all areas of wind power generation, including turbines, equipment, cables, and operation systems.

According to the Korea Exchange on the 7th, LS traded at 71,500 KRW during the day, up 20.98% from the previous trading day. Considering that the closing price on the 3rd of last month was 40,900 KRW, it means the stock price surged 74.82% in just over a month.

CS Wind's stock price began to rise sharply from July. The stock price, which was 42,900 KRW at the close on July 1, rose to as high as 127,000 KRW during trading on the 4th, nearly tripling in two months.

Dongkuk S&C closed up 24.66% on the 4th and rose 20.99% again during the day, pushing the stock price from the 7,000 KRW range to over 10,000 KRW in one go. As of 10:09 AM that day, it was trading at 10,750 KRW.

Source=Kiwoom Securities

This is because global wind power installations have reversed to an upward trend for the first time in four years, and domestic investors' interest is focused thanks to the New Deal policy.

China, the world's largest wind power market, is expected to continue its boom next year, and the second-largest market, the United States, is expected to enjoy a boom at least until 2024. In particular, if Democratic candidate Joe Biden wins the U.S. presidential election, it is anticipated that the market will enter a long-term super boom period.

Joe Biden has pledged to build a 100% clean energy economy by 2050 and achieve zero carbon emissions through strong eco-friendly policies. Specifically, regarding renewable energy policies, he plans to install 500 million solar panels and 60,000 wind turbines, respectively, and expand eco-friendly energy production through investments in carbon capture and storage and other green technologies.

Amid this global atmosphere, offshore wind power is being reappraised in Korea recently along with the Green New Deal policy.

Kim Ji-san, a researcher at Kiwoom Securities, diagnosed, "In the future, large-scale government investment and institutional improvements for the Green New Deal are expected to provide new opportunities to domestic companies across all areas of wind power generation, including turbines, equipment, cables, and operation systems."

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