Mohenz, Yoon "Saemangeum is South Korea's No.1 Future Growth Engine"...Targeting Local Elections

Transition Team to Report Separately to Yoon on 'Saemangeum Development'... Managing Public Sentiment Ahead of Local Elections
Yoon to Visit Honam for 2 Days Starting Tomorrow... Visits to Saemangeum and Jeonju
Cement Price Increase Leads to Double-Digit Rise Forecast for Ready-Mix Concrete

[Asia Economy Reporter Hyungsoo Park] Mohenz expanded its late-stage price increase. It appears that news about the Presidential Transition Committee (PTC) preparing a separate report on the Saemangeum development roadmap, which is being discussed for balanced national development, to President-elect Yoon Suk-yeol influenced the stock price.

The Saemangeum development is a key regional pledge made by President-elect Yoon and has currently been selected as a TF-type special task within the PTC. In political circles, there is also an interpretation that this is to appease public sentiment in Honam ahead of local elections.

On the 19th, Mohenz closed trading at 6,100 KRW, up 10.91% from the previous day.

According to the PTC and political circles, the PTC’s Special Committee on Regional Balanced Development plans to deliver a comprehensive review opinion on the mid- to long-term national balanced development plan to President-elect Yoon on the 25th, and separately report on the Saemangeum development project.

A PTC official stated, "Since Saemangeum is the biggest issue in Jeonbuk and a core axis of national balanced development, a separate time will be arranged to explain the development roadmap."

Earlier, during his presidential campaign, President-elect Yoon promised, "It is no exaggeration to say that Jeonbuk’s future depends on Saemangeum," and "Starting with Saemangeum, I will carefully manage various regional issues."

In political circles, this is seen as a message that President-elect Yoon and the PTC are directly attending to Honam public sentiment ahead of local elections. Starting from the 20th, President-elect Yoon will personally visit Honam areas including Saemangeum and Jeonju Innovation City. Since his candidacy, he has sent handwritten letters to every household in Gwangju, Jeonnam, and Jeonbuk. Among conservative administrations, he has presented the most significant Honam development plans, and even after the PTC’s launch, he has put effort into discussing upgrading the Special Committee on Regional Balanced Development to a deputy prime minister-level organization in the next government.

The special committee plans to present to President-elect Yoon not only detailed implementation plans for the pledges but also specific measures to activate private investment. Since already pouring in as much as 10 trillion KRW in national funds, the judgment is that it is now time to shift to attracting private investment. It is highly likely that tax support measures such as local taxes and financial incentives will also be proposed. A representative from President-elect Yoon’s side explained, "Support measures to attract advanced industries and financial industries are also being prepared."

The securities industry advises that it is difficult to judge whether there will be benefits from political issues, and suggests that the possibility of ready-mixed concrete price increases will have a greater impact on stock prices. As cement prices rise, the price of ready-mixed concrete supplied to construction sites is expected to increase. The ready-mixed concrete industry sees double-digit price increases as inevitable, given the rise in both cement prices and the cost of aggregates mixed with cement. It is known that despite raising ready-mixed concrete prices by double digits for two consecutive years, further increases are unavoidable.