[Special Stock] 'Beneficiary of Interest Rate Hike'... Hanwha Sonbo Soars Nearly 10%

[Asia Economy Reporter Ji Yeon-jin] Hanwha General Insurance is soaring nearly 10% in the KOSPI market on the 6th. This is due to U.S. Treasury Secretary Janet Yellen's hawkish remarks, which have elevated insurance stocks as beneficiaries of rising interest rates.

As of 10:10 a.m. on the day, Hanwha General Insurance was trading at 5,050 KRW, up 9.76% compared to the previous trading day.

Earlier, on the 4th (local time), Treasury Secretary Yellen stated in an interview with The Atlantic, "We may need to raise interest rates slightly to prevent the economy from overheating," adding, "Additional spending may be relatively small compared to the size of the economy, but it could cause a very modest increase in interest rates."

These remarks led to expectations of interest rate hikes, driving investment toward financial stocks including insurance. As of 9:30 a.m. on the same day, foreign investors ranked Hanwha General Insurance third in net purchases, following Industrial Bank of Korea and Bohae Brewery. In the case of financial stocks, rising interest rates can increase interest income, potentially boosting earnings.