[Weekly HOT Stocks] Foreigners Buy LG Chem... Stock Price Rises 12%

Foreign Investors Net Purchase of LG Chem Shares Worth 524.3 Billion KRW from 23rd to 27th

[Asia Economy Reporter Geum Bo-ryeong] Foreign investors have massively purchased LG Chem shares over the past week. The stock price rose by 12%.

According to the Korea Exchange on the 28th, foreign investors net bought LG Chem shares worth 524.3 billion KRW over five trading days from the 23rd to the 27th. During this period, LG Chem ranked first among the top stocks by net foreign investor purchases.

The stock price also surged significantly. The closing price, which was 724,000 KRW on the 20th, rose to 810,000 KRW on the 27th, marking an 11.88% increase within a week. On the 25th, the price soared to an intraday high of 833,000 KRW, setting a new intraday record. On the 26th, it closed at 816,000 KRW, recording the highest closing price ever.

The Tesla effect and accelerated innovation in battery technology are expected to speed up the expansion of the electric vehicle market, which is considered a key investment point for LG Chem. Park Yeon-ju, a researcher at Mirae Asset Daewoo, said, "The growth rate of the mid-to-long-term electric vehicle market is expected to accelerate further due to accelerated battery technology innovation, policy changes in major countries, and strengthened commitment from major original equipment manufacturers (OEMs) to switch to electric vehicles." She added, "Following Tesla's battery production announcement, existing battery companies are accelerating technology development, which is expected to speed up mass production of larger cells and application of high-nickel cathode materials. Due to battery price declines, the penetration rate of electric vehicles in the mid-term market is expected to rise faster than market expectations. LG Chem's battery division is highly likely to grow faster than guidance in mid-term performance."

LG Chem is classified as a representative low-carbon transition company, meaning it has the capability to convert carbon-intensive products and services into low-carbon products. It has secured over 5,000 low-carbon-related patents accumulated over five years. Hwang Sung-hyun, a researcher at Eugene Investment & Securities, analyzed, "LG Chem is expected to benefit from the expansion of the electric vehicle market aimed at reducing carbon emissions, so the battery business division's scale and profitability growth will continue. In particular, profitability improvement through cylindrical cell facility expansion and rapid market share expansion through collaboration with automakers and a super-gap strategy are anticipated."

However, risks also exist. Researcher Park said, "There is a possibility of short-term profit-taking selling pressure due to the stock price rise," and "If Tesla's battery mass production speed is fast, short-term noise may also occur."