Yoon Administration Drives Hydrogen Economy... Related Stocks Down on First Day in Office

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] As the Yoon Suk-yeol administration, launched on the 10th, is expected to accelerate toward a hydrogen economy, related stocks are gaining attention. However, the performance on the first day of the administration shows mostly weakness due to the domestic stock market's investment sentiment being dampened by fears of U.S. interest rate hikes.

According to the financial investment industry, among the 110 national tasks announced by the new government, 'hydrogen' appeared as a keyword in 10 items. The government plans to focus on research and development (R&D) of hydrogen production linked to next-generation nuclear power technologies such as small modular reactors (SMR), fourth-generation reactors, and nuclear fusion, and actively participate in green discussions at international organizations including the World Trade Organization (WTO) to expand the clean hydrogen trade base. There are also plans to expand hydrogen energy sources to establish energy security, promote the advancement and low-carbon transition of key industries such as manufacturing, and build demonstration plants for hydrogen reduction steelmaking. Regarding nuclear hydrogen, EM Korea, Elkemtech, Orbitek, and Dawonsys are mentioned as beneficiary stocks, while clean hydrogen production companies linked to overseas eco-friendly energy include Hyundai Motor, Lotte Fine Chemical, and SK Gas. Additionally, companies benefiting from reduced carbon dioxide emissions through electric furnaces using eco-friendly and renewable energy include POSCO and Hyundai Steel.

Furthermore, the passage of the amendment to the Hydrogen Economy Promotion and Hydrogen Safety Management Act (Hydrogen Act) by the National Assembly's Industry, Trade, Energy, and Small and Medium Enterprises Committee the day before is also a positive factor. The amendment includes systems to revitalize the hydrogen economy, such as introducing a certification system to promote the use of clean hydrogen and implementing a Clean Hydrogen Power Purchase System (CHPS). It also includes the introduction of a natural gas tariff system for hydrogen power generation, administrative and financial support for clean hydrogen production and use, and the introduction of a hydrogen power generation bidding market.

However, these companies have struggled from the early trading hours on the first day of the administration due to the sharp decline in the U.S. stock market. Hyundai Motor, which started with a slight decline, is expanding its losses during the session, and among nuclear hydrogen stocks, only Orbitek is recording a rise of over 4% during the session, while the rest are all weak.

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