[Into the Stocks] Hyundai Construction Truly Benefits from Yoon's Election Victory

Expansion of Housing Supply, Relaxation of Reconstruction Regulations, and Nuclear Power Normalization
Expectations for Policy Benefits from the Next Government

President-elect Yoon Suk-yeol announced the appointment results for the chairman and vice chairman of the Presidential Transition Committee on the afternoon of the 13th at the People Power Party headquarters in Yeouido, Seoul. President-elect Yoon stated, "Ahn Cheol-soo, leader of the People’s Party, has been appointed as the chairman of the transition committee, and Kwon Young-se, member of the People Power Party, has been appointed as the vice chairman." Photo by National Assembly Press Photographers Group

[Asia Economy Reporter Kwon Jae-hee] With Yoon Seok-yeol of the People Power Party elected as the 20th president, Hyundai Construction is gaining attention as a beneficiary stock. This is due to Yoon's real estate-related pledges such as expanding supply and easing reconstruction regulations, as well as the normalization of nuclear power policies, which are expected to benefit various business areas Hyundai Construction is engaged in under the current administration.

Hyundai Construction closed at 48,150 KRW on the 10th, the day after the 20th presidential election, up 8.94%. It then rose 2.6% the following day, and on the morning of the 14th, it climbed intraday to 51,100 KRW. This marks three consecutive trading days of gains since the election.

During his candidacy, Yoon pledged real estate policies focused on expanding supply and easing regulations. He diagnosed the current administration's policy failure as overly concentrating on suppressing demand through excessive regulations while neglecting supply, and promised large-scale housing supply and easing of reconstruction regulations to stabilize the real estate market.

Yoon promised to supply 2.5 million housing units nationwide over his five-year term, with 470,000 units supplied through reconstruction and redevelopment alone. Regarding reconstruction, he plans to lower the structural stability weight in safety inspection criteria from the current 50% to 30%, and increase the residential environment weight from 15% to 30%, which is expected to accelerate reconstruction projects. He also announced plans to revise the redevelopment law for first-generation new towns.

Hyundai Construction ranks second in the construction capability ranking published annually by the Ministry of Land, Infrastructure and Transport, and owns the premium apartment brand "The H," which is expected to stand out in reconstruction projects based on quality and brand. Especially amid a series of construction site accidents and the enforcement of the Serious Accident Punishment Act, quality issues have become crucial in winning contracts, giving large companies like Hyundai Construction a competitive edge.

Hyundai Construction is also drawing attention as a nuclear power-related stock as Yoon emphasizes nuclear power as part of his energy pledges. Yoon pledged to maintain a 30% share of nuclear power generation and support the development and export of Small Modular Reactors (SMRs).

Hyundai Construction has a track record of constructing 18 out of 30 domestic nuclear power plants (60%), so it is expected to benefit from the normalization of nuclear power policies.

Lee Dong-heon, a researcher at Daishin Securities, said, "Hyundai Construction is a versatile player across all sectors including housing and nuclear power," and evaluated that "it stands out as an attractive leading construction stock at the turnaround point of the construction industry."

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