"Stock Prices Rise 3-4% One Month After Past Presidential Elections... Spotlight on Securities and Renewable Energy"

So far, stock prices have risen by an average of 3-4% one month after presidential elections. In particular, for the upcoming June 3 presidential election, favorable stock market policies and stimulus measures, including the second supplementary budget, are expected to boost stock prices. Securities stocks and renewable energy-related stocks have been highlighted as key beneficiaries to watch.

Heo Jaehwan, a researcher at Eugene Investment & Securities, stated in his report "Presidential Elections and the Stock Market" released on June 2, one day before the election, that "since 1981, the KOSPI has declined one year after the election in only 3 out of 9 cases." He added, "Looking at the past nine elections, stock prices rose by 3-4% one month after the election and by 14-16% one year later," and assessed, "The easing of uncertainty, rather than policy expectations, likely had a positive effect on stock prices."

Domestic Stock Market Trends Since Past Presidential Elections. Eugene Investment & Securities

In particular, Heo pointed out that there are two major expectations for stock prices following this June 3 presidential election: "learning from previous policy failures and the resulting relative benefits for the stock market." He explained, "The new administration is likely to use the aftereffects of regulation-centered real estate policies as a lesson. In that process, the stock market and the broader financial market are expected to enjoy relative benefits."

He also noted, "The second factor expected after the election is the likelihood that policies aimed at revitalizing livelihoods and domestic demand will be fully implemented," mentioning the potential for improved consumer sentiment and a second supplementary budget after the election.

Accordingly, Heo assessed, "While maintaining a favorable outlook for the stock market, it is valid to focus on the securities sector, which is expected to benefit, as well as the renewable energy industry, which stands out as the biggest difference from the previous administration."

Lee Jaemyung, the Democratic Party candidate, has pledged shareholder returns and the strengthening of fiduciary duties through amendments to the Commercial Act. Kim Moonsu, the People Power Party candidate, has promised separate taxation of dividend income and investor relations (IR) events for foreign investors, signaling intentions to boost the stock market. Regarding the renewable energy industry, Lee has also pledged to establish a Ministry of Climate and Energy and to pursue a mix of nuclear and renewable energy. Heo predicted, "Securities and renewable energy will be at the center of policy."