[Featured Stock] Korea Asset Investment Securities Highlights Stake in Leading Global Company of Rare Earth Permanent Magnets, Core to Future Cars

[Asia Economy Reporter Minwoo Lee] Korea Asset Investment Securities' stock price is on the rise. It appears that news highlighting Seongrim Advanced Industry, the fund's management target, potentially becoming the world's number one in the rare earth permanent magnet sector has been emphasized.

As of 2:26 PM on the 14th, Korea Asset Investment Securities' stock price recorded 12,050 KRW, up 7.11% compared to the previous day. The growth potential of Seongrim Advanced Industry seems to have acted as a positive factor.

Gong Gunseung, CEO of Seongrim Advanced Industry, stated in an interview with a domestic economic media outlet the day before, "We plan to invest 38 billion KRW to build a high heat-resistant permanent magnet manufacturing plant on a 11,410㎡ site in Daegu Technopolis and to start full-scale mass production in the second half of the year," adding, "Once this plant is operational, we can become the world's number one in the rare earth permanent magnet sector."

Founded in 1994, Seongrim Advanced Industry began domestic production of permanent magnets used in computer hard disks from 2002. Since 2013, it has started full-scale production of permanent magnets for electric vehicles, beginning with Hyundai Motor Company's YF Sonata Hybrid. It is reported that the company has already received orders covering 2 to 3 years in advance from domestic automakers as well as overseas companies. Sales grew from 40 billion KRW in 2020 to approximately 70 billion KRW last year.

Meanwhile, Korea Asset Investment Securities, together with Korea Growth Investment Corporation, is managing the sub-fund 'POSCO KAICI New Technology Business Investment Association No.1' of the POSCO New Growth Fund No.1. Through this fund, POSCO New Growth Fund No.1 invested about 10 billion KRW in Seongrim Advanced Industry.