National Pension Service Includes Stocks with Improved 'Performance and ESG' This Year

Electric Vehicle Corps, Expectation of K-Content Rise

Doosan Heavy Industries Purchases Largest Amount of 93.8 Billion KRW

HDC Hyundai Development Company, Emart, etc.

Sale of Shares in Companies with Social Controversies

[Asia Economy Reporter Park Soyeon] The National Pension Service (NPS) has been buying stocks expected to rise, such as those related to the Electric Vehicle (Jeoncha) Corps and K-content, as well as companies with noticeable improvements in corporate governance, while selling large amounts of shares in socially controversial companies like HDC Hyundai Development Company and Emart this year.

According to financial information firm FN Guide on the 21st, the NPS bought 13 stocks worth 267.3 billion KRW and sold 16 stocks worth 269 billion KRW this year, resulting in a net sale of 1.7 billion KRW. The data covers stocks where the NPS holds more than 5% ownership and the change in shareholding occurred after the 1st of last month.

The stock most purchased by the NPS during this period was Doosan Heavy Industries. The NPS acquired 5,088,104 shares of Doosan Heavy Industries, amounting to approximately 93.87552 billion KRW based on the closing price on the purchase date. Doosan Heavy Industries recently completed a paid-in capital increase of about 1.15 trillion KRW and is preparing for debt repayment negotiations with creditors. Its stock price is currently at 50-60% of last year's peak.

Next, the NPS bought 468,524 shares of Hyundai Glovis, a logistics affiliate of Hyundai Motor Group, for 71.854 billion KRW. Recently, special related parties including Hyundai Motor Group Chairman Chung Euisun sold 10 percentage points of their Hyundai Glovis shares. This transaction reduced the major shareholder's stake from 30% to 20%, easing internal transaction regulations. Expectations have risen regarding the resolution of the overhang issue and the entry of a prominent private equity fund as a shareholder.

The NPS also purchased over 10 billion KRW worth of stocks in Korea Aerospace Industries (1,092,256 shares, 40.85037 billion KRW), Nongshim (47,673 shares, 15.345 billion KRW), J Contentree (283,138 shares, 14.462 billion KRW), and KCC Glass (160,368 shares, 10.584 billion KRW). Notably, the purchase of over 10 billion KRW in J Contentree, a film and broadcasting content production company, drew attention. J Contentree is the parent company of Film Monster, the producer of the popular Netflix Korean drama "All of Us Are Dead." J Contentree is also considered a promising stock for theater reopening as the COVID-19 situation improves.

On the other hand, stocks heavily sold include Korea Shipbuilding & Offshore Engineering (707,909 shares, 71.145 billion KRW), HDC Hyundai Development Company (2,772,935 shares, 47.666 billion KRW), Hyundai Engineering & Construction (635,472 shares, 26.254 billion KRW), KB Financial Group (438,317 shares, 25.422 billion KRW), BNK Financial Group (1,782,769 shares, 15.028 billion KRW), and Emart (103,975 shares, 14.41 billion KRW).

Korea Shipbuilding & Offshore Engineering, the intermediate holding company of Hyundai Heavy Industries Group, showed weakness after the European Union (EU) competition authorities blocked Hyundai Heavy Industries Group's acquisition of Daewoo Shipbuilding & Marine Engineering. HDC Hyundai Development Company has suffered consecutive hits in credit rating, brand power, and ESG (Environmental, Social, and Governance) ratings following the collapse of the Gwangju Hwajeong apartment. Emart faced backlash after Shinsegae Group Vice Chairman Chung Yong-jin's "anti-communism" remarks sparked political controversy and foreign media coverage.

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