Setopia is showing strong performance. This is interpreted as being influenced by the government's announcement of a risk response strategy to China's rare earth export ban.
As of 9:42 AM on the 19th, Setopia is trading at 4,140 KRW, up 25.8% compared to the previous day.
The day before, the Ministry of Trade, Industry and Energy held the 11th Committee on Strengthening Competitiveness of Materials, Parts, and Equipment, announcing the establishment of an 'International Standardization Strategy for Rare Earths' in response to China's 'resource weaponization' card, and plans to introduce three standard materials and develop eight international standards by 2030.
The government explained that this plan aims to secure the reliability of rare earth quality in international customs clearance and transactions. Furthermore, it will promote three 'recycling standards' specifying rare earth component labeling and classification criteria. Notably, it plans to develop and introduce recycling standards related to motors. The strategy is to create an eco-friendly and stable rare earth supply chain through the rare earth recycling industry, diversifying the supply chain that is currently heavily dependent on China.
Meanwhile, Setopia has acquired shares in KCM Industry, which possesses neodymium permanent magnet powder (NdFeB) production technology, to facilitate the smooth progress of its rare earth permanent magnet business.
A Setopia representative stated, "Starting with the acquisition of shares in KCM Industry, we plan to stably supply NdPr oxides based on Vietnamese raw materials through a domestic joint venture with Vietnam VTRE," adding, "By prioritizing the supply of NdPr oxides, we will further complete the domestic value chain of rare earth permanent magnets that does not rely on China."
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