The Hub of Ukraine Reconstruction Projects 'Poland'... Sorting the Wheat from the Chaff in Ukraine Reconstruction Stocks

by Jang Hyowon

Published 21 Jan.2025 09:16(KST)

Yonhap News

With the official launch of the second term of the Donald Trump administration, expectations for the end of the Ukraine war are being revived. In particular, Poland, which has devoted full efforts from humanitarian aid to military cooperation during the war, is being recognized as the top priority partner for Ukraine's reconstruction, prompting the securities market to begin discerning beneficiary stocks.

According to the '2025 Poland Investment Practical Guide' published by the Ministry of Trade, Industry and Energy and the Korea Trade-Investment Promotion Agency (KOTRA), Poland is expected to play a pivotal role as a production and logistics hub in the Ukraine reconstruction project. Poland, as a host country and one of the largest supporters, has spared no military aid such as weapon supplies and economic support. It is known to have provided more than 3 billion euros in aid during the war.

President-elect Donald Trump is accelerating discussions on ending the 'two wars'?the Gaza Strip conflict and the Russia-Ukraine war. Mike Waltz, nominated as White House National Security Advisor, announced that a meeting between President-elect Trump and President Putin is currently being prepared. Keith Kellogg, appointed as the special envoy for Ukraine war termination negotiations, recently appeared on Fox News and proposed a timeline of 100 days until the end of the war.

Amid anticipated U.S. pressure for an early end to the war, experts advise cautious investment approaches regarding the volatile stocks related to Ukraine reconstruction. Korean companies that have built close relationships with Poland, which is likely to serve as a hub for reconstruction projects due to its geographical advantage and logistics centrality, are expected to receive tangible benefits.

Sonid, which maintains a friendly relationship with Poland, is gaining attention as a beneficiary company in Ukraine's reconstruction. This is because it has secured the authority to fulfill offset trade obligations between Korea and Poland. Since 2023, it has been known as the exclusive partner of L-PIAP, a Polish state-owned robot development company. PIAP is a state-owned scientific research institute in Warsaw, Poland, with over 50 years of history in automation and robotics.

Sonid jointly developed explosive and detection robots with PIAP. Sonid’s explosive and mine detection equipment was mounted on PIAP’s robots. Since mine and explosive detection and removal are expected to be the first phase of Ukraine’s reconstruction project, demand for the jointly developed explosive and mine detection robots by the two companies is projected to surge.

Jeonjin Construction Robot is also attracting attention due to its reconstruction track record. Since last year, it has achieved approximately 50 billion KRW in sales through the T?rkiye earthquake reconstruction project. CPC is essential for road, bridge, and railway repairs and holds the second-largest market share in North America. To focus on the Ukraine reconstruction project, it has fully suspended investments in Vietnam and is accelerating the establishment of a local factory in Poland.

Additionally, Hyundai Everdigm and Doosan Bobcat are also emerging as stocks related to Ukraine reconstruction. This is because construction machinery and equipment companies are expected to be the first beneficiaries once the big cycle of Ukraine reconstruction begins.