[Featured Stock] Conservative Party's Return to Power, Will Inter-Korean Relations Freeze?... Sharp Decline in North Korea-Related Stocks

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 10th, when the 20th presidential election concluded, stocks related to North Korea sharply declined across the domestic stock market. The election of Yoon Seok-yeol, the People Power Party candidate, appears to have triggered concerns over deteriorating inter-Korean relations, pulling down stock prices.

As of 9:35 a.m. that day, Ananti was trading at 8,100 KRW, down 10.98% (1,000 KRW) from the previous day. The stock even fell below 8,000 KRW in early trading. Daewoo Ti also dropped 11.33% (520 KRW) to 4,070 KRW.

Ananti owns the Ananti Golf & Oncheon Resort within the Geumgangsan tourism zone. The stock surged on expectations of improved inter-Korean relations following the inauguration of the Moon Jae-in administration but faced corrections after relations soured. Daewoo Ti is a specialist in railway signal control systems and was grouped as a North Korea-themed stock due to the inter-Korean railway opening issue.

Stocks classified as related to the Kaesong Industrial Complex, such as IndieF (-10.98%) and J. Estina (-7.28%), are also sharply declining.

Ilsin Stone also fell 8.13% that day; it is classified as a related stock as its major shareholder, the Unification Church foundation, is known to own land including religious facilities in Paju City.