Yoon Policy Theme Stocks Nuclear Power? ... Construction Also Expected to Benefit

President-elect Yoon Suk-yeol is walking to pay respects at the National Seoul Memorial Cemetery in Dongjak-gu, Seoul on the 10th. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Lee Jung-yoon] With Yoon Seok-yeol elected as the new president of South Korea, interest in policy-themed stocks is also increasing. Unlike the current administration, which pledged to abandon nuclear power, Yoon has promised to scrap the phase-out policy and build new nuclear power plants, leading to expectations that nuclear-related companies will be the first to benefit.

According to the Korea Exchange on the 10th, as of 10 a.m., Korea Electric Power Corporation (KEPCO) was trading at 24,200 KRW, up 2.98% from the previous trading day. At the same time, KEPCO Engineering & Construction and KEPCO KPS also showed upward trends, rising 3.03% and 3.32%, respectively, compared to the previous day. Boseong Powertech surged more than 20%.

Earlier, President-elect Yoon pledged to use nuclear power as a major energy source to reduce carbon emissions while participating in global greenhouse gas reduction efforts. He promised to increase the share of nuclear power generation, which has averaged 26.4% since 2017, to over 30%.

Benefits are also expected for construction stocks. Yoon promised to expand housing supply along with deregulation and restoration of private sector functions. Key pledges related to construction stocks include △ a goal of supplying more than 2.5 million housing units over five years, with 2 million units led by the private sector △ additional supply of over 100,000 units through the revitalization of first-generation new towns △ extension of the first phase GTX (Great Train Express) and construction of the second phase GTX. Lee Kyung-ja, a researcher at Samsung Securities, explained, "Expansion of private-sector-led pre-sale volumes and activation of Seoul redevelopment projects will establish major changes in the construction industry by expanding order opportunities for large construction companies."

He also announced plans to reform the loan-to-value ratio (LTV) for mortgages, with expectations that easing loan regulations will positively impact bank stocks. Yoon promised to raise the LTV cap to 80% for first-time homebuyers and unify the cap at 70% regardless of region for non-first-time buyers. However, there are concerns that benefits may be limited as he also plans to regulate excessive gaps between deposit and loan interest rates.

Additionally, industries related to IT, biohealth, aerospace, blockchain, and metaverse are attracting attention as sectors expected to grow. Kim Young-hwan, a researcher at NH Investment & Securities, said, "Since there is already a political consensus on mid- to long-term growth potential, it is difficult to expect dynamic changes just because a new government takes office," but added, "However, these are fields expected to grow in the mid- to long-term under a business-friendly government."

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