[Stock in Focus] Sejin Heavy Industries Surges Over 5% on Expectations of Benefit from U.S. "Burns-Tollefson Act" Workaround

As the construction of U.S. naval vessels in South Korea is being considered as a way to circumvent the "Burns-Tollefson Act," the stock price of Sejin Heavy Industries, which is expected to benefit from this development, is on the rise.

As of 9:15 a.m. on September 1, Sejin Heavy Industries was trading at 16,000 won, up 800 won (5.26%) from the previous trading day.

On this day, Jeon Youngdae, a researcher at Stunning Value Research, stated, "As the United States is considering building its naval vessels in South Korea, Sejin Heavy Industries is expected to benefit, given that it exclusively supplies deckhouses and gas tanks to the subsidiaries of HD Korea Shipbuilding & Offshore Engineering."

The "Burns-Tollefson Act" is a law that prohibits the construction of U.S. naval vessels, hulls, or major components overseas. However, the United States is reviewing ways to bypass this restriction, such as through presidential executive orders, to allow the construction of its naval vessels in South Korea.

It has been reported that a U.S. Navy official recently met with the Defense Acquisition Program Administration and shared the importance of cooperation in shipbuilding and MRO (maintenance, repair, and overhaul), and that they are discussing specific ways to collaborate.