Political theme stocks 'surge' despite market crash... Impact of early presidential election

Sangji Construction and Kona I Surge Sharply

With the impeachment of President Yoon Suk-yeol, triggering an early presidential election phase, political theme stocks surged simultaneously.

View of the National Assembly in Yeouido, Seoul. Photo by Yonhap News Agency

On the 7th, in the KOSDAQ market, Sangji Construction (042940) recorded 9,020 KRW, up 29.97% from the previous trading day. Along with this, stocks classified as theme stocks of Lee Jae-myung, leader of the Democratic Party of Korea, such as Kona I (27.78%), Orient Precision (9.11%), Hyungji Global (1.84%), and Hyungji Elite (8.8%), also rose sharply.

On the KOSPI, Pyunghwa Holdings (010770), classified as a theme stock of Kim Moon-soo, Minister of Employment and Labor, rose 29.98% to close at 12,920 KRW, hitting the upper price limit, and Pyunghwa Industry (090080) also increased by 12.5%.

Gyeongnam Steel (29.97%), a theme stock of Hong Joon-pyo, Mayor of Daegu, and Taeyang Metal (29.88%), a theme stock of Han Dong-hoon, former leader of the People Power Party, also closed at the upper price limit, while Jinyang Chemical, a representative theme stock of Oh Se-hoon, Mayor of Seoul, rose 10.38%.

Following the Constitutional Court's decision to impeach President Yoon on the 4th, the government is reported to have tentatively set the early presidential election date for June 3. The next presidential election date is expected to be finalized at the Cabinet meeting on the 8th.