[Special Stock] Related Shares Surge on News of China's Rare Earth Export Controls... Union Up Over 10%

As news spread that China has imposed a rare earth export ban in response to the United States' reciprocal tariffs, rare earth-related stocks, including Union, are showing a sharp rise in the domestic stock market on the 14th.

As of 10:10 a.m. that day, Union was trading at 6,410 won per share, up 10.33% from the previous trading day. Union Material, which produces ferrite magnets, a substitute material for rare earths, is also recording an increase of around 6%.

Hyundai BNG Steel, which holds shares in Seongrim Advanced Industry, the only domestic rare earth permanent magnet manufacturer, also rose more than 6% compared to the previous trading day. Novatech rose 21.19%, and Dongkuk R&S showed a 9.66% increase.

This rally is expected because domestic rare earth-related companies are likely to benefit from China's suspension of rare earth exports. The US daily newspaper The New York Times (NYT) previously reported that the Chinese government has restricted exports of six types of medium rare earth metals, which are entirely refined in China, and rare earth magnets, 90% of which are produced in China, since the 4th.

Medium rare earth metals are used in electric motors, which are core components of automobiles, drones, robots, and missiles. They are also essential for artificial intelligence (AI) servers and smartphone power supplies. China, which accounts for more than 90% of global production, has designated these as export-restricted items and has only allowed exports with special permits.

This export control is a retaliatory measure in response to the reciprocal tariffs imposed by the Donald Trump US administration. The NYT reported that it could pose a threat to supply key components to global automobile manufacturers, aerospace manufacturers, semiconductor companies, and defense contractors.