Speaker Woo Wonsik and Representative Lee Junseok Themed Stocks Surge
Bankware Global, Kolon Mobility Group, Sambo Industry, etc. Rise Without Clear Reason
Continued Concentration Phenomenon of Political Themed Stocks Proliferating Rapidly
The political theme stock frenzy continues in the domestic stock market. While the impeachment motion against President Yoon Seok-yeol passed the National Assembly plenary session on the 14th, existing theme stocks showed signs of consolidation. Meanwhile, stocks related to National Assembly Speaker Woo Won-sik and Reform New Party member Lee Jun-seok newly emerged. Speculative funds seeking high short-term returns are moving between listed companies, increasing volatility.
According to the financial investment industry on the 17th, Kolon Mobility Group and Bankware Global, considered theme stocks related to Speaker Woo Won-sik, surged to the price limit on the previous day’s stock market.
The news that Woo’s credibility sharply rose after the 'December 3 Emergency Martial Law' incident influenced speculative sentiment. According to Gallup Korea, a survey conducted from the 10th to 12th among 1,002 adults aged 18 and over nationwide about individual trust in recent political figures showed that 56% responded that they 'trust' Speaker Woo, ranking first. He was the only politician among those surveyed whose trust level was higher than distrust.
Fast-moving individual investors sought stocks connected to Woo’s network. Born in 1957, Woo graduated from Gyeongdong High School and Yonsei University. Accordingly, listed companies known to have executives who graduated from Gyeongdong High School surged to the price limit. Movements to find latecomers appeared mainly in stock-related communities, and posts recommending newly listed company N also appeared. Some investors searched for theme stocks based on Woo’s efforts to expand renewable energy for sustainable development and climate crisis response.
Companies such as Sambo Industry and Next Eye surged as theme stocks related to Assemblyman Lee Jun-seok. Lee appeared on JTBC Newsroom and said in response to the question, 'Do you have plans to run for president?' that he is "seriously considering it." He also said, "If the impeachment results come out in February, participation will be possible."
On the other hand, existing political theme stocks such as Koiz, Total Soft, Estaco, Ilseong Construction, and Hyungji Elite plummeted. As political theme stocks run rampant, the Korea Exchange has increased the number of investment warning stocks it designates. Since the 6th, 21 listed companies have been designated as investment warning stocks.
A financial investment industry official explained, "Since the 'December 3 Emergency Martial Law' incident, the number of stocks hitting the upper limit has increased," adding, "As the political theme stock concentration continues, market volatility is increasing." He added, "If interest continues in stocks expected to improve earnings next year and those with excessive price drops, a virtuous cycle effect may appear," but also noted, "Currently, the concentration is continuing only in some theme stocks, leaving the majority of listed companies neglected."
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