[Market Focus] "Lee Jae-myung Theme Stocks" Plunge Following Supreme Court Remand

The so-called "Lee Jae-myung theme stocks," including Sangi Construction, Orient Bio, and Dongsin Construction, are experiencing sharp declines in the domestic stock market on the morning of May 2. This comes in the wake of the Supreme Court's decision the previous day to overturn and remand the case against Lee Jae-myung, the Democratic Party of Korea's presidential candidate, for violations of the Public Official Election Act with a "guilty" implication. As a result, judicial risks and uncertainty surrounding Lee's presidential bid have risen significantly.

At the launch ceremony of the Democratic Party of Korea's 21st presidential election 'Real Republic of Korea' Central Election Countermeasures Committee held at the National Assembly Members' Office Building in Yeouido, Seoul on the 30th, presidential candidate Lee Jae-myung and the committee chairpersons wore election jumpers and shouted fighting. 2025.4.30 Photo by Kim Hyunmin

As of 9:30 a.m. on this day, shares of Sangi Construction were trading at 25,650 won per share, down 17.26% from the previous session. Dongsin Construction, another Lee Jae-myung theme stock, was also down 16.267% at 42,700 won. Orient Bio dropped 16.29%, while Orient Precision Engineering fell by 15.54%. Other related stocks such as Hyungji Elite (-13.18%), ATEC (-12.99%), and Hyungji Global (-10.50%) also saw simultaneous declines.

The previous day, the Supreme Court overturned the appellate court's acquittal of Lee, a leading presidential contender, in the Public Official Election Act case, remanding it with a virtually complete "guilty" implication. Although there is currently no legal barrier to Lee's presidential candidacy until a final ruling is made, the Supreme Court's acknowledgment of the possibility of guilt has sparked controversy over his eligibility. As a result, the market appears to believe that this remand will negatively impact Lee's presidential challenge, leading to the decline in related stocks.

In contrast, theme stocks related to former Prime Minister Han Ducksoo, who officially announced his presidential bid on this day, such as Sigong Tech (up 20.69%) and Icecream Edu (up 24.36%), are surging. Theme stocks related to Kim Moonsoo and Han Donghoon, presidential primary candidates from the People Power Party, as well as Kim Dongyeon, the Governor of Gyeonggi Province and a former Democratic Party primary candidate, are also on the rise.