[Market Focus] Lee Jaemyung Elected... Renewable Energy Stocks Such as Wind and Solar Power on the Rise

With the inauguration of the Lee Jaemyung administration, expectations for the expansion of renewable energy are rising, leading to an increase in the stock prices of companies related to renewable energy such as wind and solar power on June 4.

As of 10:05 a.m. on this day, Hanwha, a solar energy-related stock, was trading at 86,400 won, up 9,200 won (11.92%) from the previous trading day. Other stocks such as Hansol Technics (6.71%), KCC (5.79%), Komico (5.29%), Lake Materials (5.05%), Gridwiz (4.60%), Hanwha Solutions (3.68%), and Shinsung ENG (3.31%) were also on the rise.

At the same time, the stock prices of wind energy-related companies were also gaining momentum. LS was trading at 173,800 won, up 13,100 won (8.15%) from the previous trading day. LS Marine Solution (5.29%), LS Materials (5.05%), and Samil CNS (3.96%) were also recording gains.

Previously, President Lee Jaemyung had emphasized the importance of expanding renewable energy since the presidential election campaign. The reason is the need to prepare for international carbon barriers that will be realized within five years. In particular, major global corporations will begin their RE100 (100% renewable energy usage) initiatives in 2030, and by then, the European Union's Carbon Border Adjustment Mechanism and national greenhouse gas reduction targets are also scheduled to be implemented. If rapid carbon reduction is not achieved, it is inevitable that Korea, as an export-oriented country, will be adversely affected.

Han Byunghwa, a researcher at Eugene Investment & Securities, stated, "Companies related to renewable energy listed on the domestic market have been relatively undervalued. This is because they lacked a presence in the domestic market." He added, "If the Lee Jaemyung administration's renewable energy expansion policy proves effective, the annual installed capacity of renewable energy could be raised to the level of 10GW."

He continued, "There will be large-scale investments in replacing coal power plants with renewable energy and in installing power grids and electrical equipment. Related domestic companies are expected to receive a different valuation for at least five years."