[Market Focus] Small and Mid-Cap Construction Firms Rally on Hopes for Increased Government Housing Supply

In the early morning session on December 4, small and mid-cap construction stocks are rising across the board.

As of 9:56 a.m. on this day, Sangji Construction shares on the KOSDAQ market are trading at 9,840 won, up by the daily maximum of 29.99%. Sangji Construction shares hit the upper price limit as soon as the market opened.

At the same time, Dongsin Construction (up 25.91%), KD (up 5.75%), and Woowon Development (up 1.96%) are also showing upward trends.

On the Korea Exchange main board, Ilseong Construction (up 20.15%), Hanshin Engineering & Construction (up 5.25%), and Dongbu Construction (up 2.09%) are also strong performers.

Investor sentiment appears to be boosted by expectations of increased government housing supply. With the inauguration of Kim Itak as the new First Vice Minister of the Ministry of Land, Infrastructure and Transport, there are projections that the expansion of housing supply and normalization of the construction industry will accelerate. At his inauguration ceremony, Vice Minister Kim stated, "The government must mobilize all its capabilities to swiftly implement follow-up measures to the September 7 supply plan, so that we can assure the public that a sufficient supply of high-quality housing will be provided in desirable locations."