[Market Movers] Stock Market Stimulus Hopes Drive Hanwha, CJ, and Other Holding Companies Higher

On the morning of June 4, shares of holding companies such as Hanwha and CJ surged sharply at the start of trading. Market sentiment appears to be rallying on expectations that holding companies could be re-evaluated, as the Lee Jae Myung administration is expected to pursue stock market stimulus policies, including amendments to the Commercial Act.

As of 10:20 a.m. on this day, Hanwha was trading at 85,700 won, up 8,500 won (11.01%) from the previous trading day. During the session, Hanwha's share price rose as high as 88,900 won.

Lee Jae Myung, the Democratic Party presidential candidate who is certain to be elected as the 21st president, is entering the central party office in Yeouido, Seoul, on the 4th to thank the campaign committee chairpersons. 2025.6.4 Photo by Kim Hyun Min

Other holding companies such as Orion Holdings (12.9%), CJ (9.31%), LS (8.03%), and SK (7.10%) also showed strong gains.

On this day, Park Geon Young, a researcher at KB Securities, stated, "While policies to strengthen the protection of general shareholders, such as amendments to the Commercial Act, continue to be discussed, such policies are expected to be further strengthened in the future." He added, "If protection for general shareholders is enhanced, it could resolve the conflict of interest issues between controlling and general shareholders, which have been a factor in the net asset value (NAV) discount for holding companies."

He went on to say, "If policy and institutional reforms such as amendments to the Commercial Act, mid- to long-term enhancement of corporate value by holding companies, and increased shareholder returns continue, the recent rise in holding company share prices may be just the beginning," emphasizing, "At this point, investment strategies for holding companies have become extremely important."

He also explained that, as the performance of major subsidiaries is improving, an investment strategy that simultaneously considers the shareholding ratio of the owner family and the shareholder return rate is effective.