Why You Should Pay Attention to Robot Stocks in Q4 This Year?

[Asia Economy Reporter Kwon Jae-hee] An analysis has emerged suggesting that robot stocks should be noted as the next industrial-related stocks following Tae, Jo, Lee, Bang, and Won (solar power, shipbuilding, secondary batteries, defense, and nuclear power). Robots briefly attracted attention when Samsung Electronics announced plans to automate factories by 2030 but then fell out of investors' focus. However, interest is rekindling with news that the government’s robot promotion policy will be announced in the fourth quarter of this year.

First, Samsung Asset Management is reportedly set to launch a robot exchange-traded fund (ETF) around September to October, raising the possibility that other institutions may also release related products. Looking at the stock price trends before and after the initial launch of thematic ETFs such as nuclear power and aerospace, a supply-demand effect can be expected.

Furthermore, the government’s robot-related policy is expected to be announced as early as the fourth quarter of this year. Previously, the government announced the 'New Government Economic Policy Direction' in June, with plans to release the '5th Basic Science and Technology Plan' in November and the 'Basic Plan for Fostering Future Promising Industries' from late this year to early 2023. The market anticipates that these will include localization policies supporting domestic production of robots.

The U.S. Inflation Reduction Act (IRA) is also generating expectations for benefits. While the IRA’s advantages have so far been limited to directly related industries such as solar power, wind power, and secondary batteries, it is analyzed that if these companies expand into the U.S. and build local factories, demand for robots and automation equipment will also increase.

Ha In-hwan, a researcher at KB Securities, said, "In fact, investments by Korean companies toward the U.S. are increasing, and with their entry into the U.S., demand for robots and automation equipment to be used in production facilities is likely to rise," advising, "Among domestic robot-related stocks, attention should be paid to companies with a certain level of overseas export ratio, especially to the U.S., rather than those limited to domestic demand."