[Market Focus] "Unification Conflict" Drives Kim Moonsoo Theme Stocks Soaring

On May 7, stocks related to Kim Moonsoo, the presidential candidate for the People Power Party, surged as conflicts emerged between Kim and the party leadership over efforts to unify with Han Ducksoo, an independent presidential preliminary candidate and former Prime Minister.

As of 9:08 a.m. that day, Pyunghwa Holdings was trading at 5,640 won, up 1,130 won (25.06%) from the previous trading day. Pyunghwa Holdings is classified as a "Kim Moonsoo theme stock" because its affiliate, PNT, has a factory in Kim's hometown of Yeongcheon, North Gyeongsang Province, and Pyunghwa Holdings Chairman Kim Jongseok shares the same Gyeongju Kim clan as Kim Moonsoo. For the same reason, Pyunghwa Industry was also trading up 19.32% at 1,266 won.

Daeyoung Packaging was trading at 1,378 won, up 16.39%. Daeyoung Packaging is linked as a related stock because it owns land near the Universal Studios Korea Resort, a project promoted during Kim's tenure as Governor of Gyeonggi Province. However, the securities and financial sectors warn that investing in political theme stocks without analyzing corporate value is risky.

Currently, the People Power Party is experiencing ongoing conflict between Kim Moonsoo and the party leadership over unification. Kim became the final presidential candidate for the People Power Party on May 3, after passing document screening and three rounds of primaries over about 20 days, emerging as the last of 11 candidates.

After the party leadership increased pressure for unification with former Prime Minister Han, Kim protested, stating, "The party continues to refuse support for the presidential candidate." Although the party leadership attempted to meet Kim the previous day to discuss unification, the meeting ultimately did not take place. However, Kim's campaign stated in an official statement, "We have promised to meet Han alone at 6 p.m. on May 7," and added, "There should be no further unnecessary debate regarding unification."