[Asia Economy Reporter Minwoo Lee] Daesung FineTec's stock price is on the rise. This appears to be due to the spotlight on its past transactions with Magna International, a global automotive parts company that is establishing a joint venture with LG Electronics. There is even speculation that the LG Electronics-Magna joint venture may supply parts related to Apple's autonomous vehicles in the future.
As of 1:50 PM on the 23rd, Daesung FineTec's stock price recorded 2,195 KRW, up 18.97% from the previous day. The history of transactions with Magna seems to have acted as a positive factor.
According to major foreign media and industry sources on the day, LG Electronics and Magna International have decided to invest $1 billion (approximately 1.1 trillion KRW) to establish an electric vehicle parts joint venture. The joint venture plans to produce electric vehicle motors, inverters, and electric driving systems through factories in Incheon and Nanjing, China. Additionally, there is speculation that the electric vehicle motors produced by the joint venture may be supplied to Apple's next-generation autonomous electric vehicles. Apple is reportedly planning to launch an electric vehicle equipped with an autonomous driving system as early as 2024.
Previously, Daesung FineTec signed a contract in 2013 with Magna to supply precision automotive parts and molds for six years. The contract was worth 23.4 billion KRW. Therefore, investment sentiment appears to have surged due to expectations of possible additional supplies in the future.
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