Lee Jae-myung, leader of the Democratic Party of Korea, was acquitted in the appeals trial related to the violation of the Public Official Election Act, causing thematic stocks to soar to the daily price limit.
Orient Precision Industries shares finished at 9,190 won in the KOSDAQ market on the 26th, climbing 29.99% (2,120 won) from the previous day, reaching the upper limit. Orient Bio also concluded the day at 1,575 won, up 29.95% (363 won). Orient Precision Industries and Orient Bio became thematic stocks because Lee once worked at Orient Watch.
Dongsin Construction, which is considered a thematic stock because it is located in Andong, Lee's hometown, also recorded the daily price limit. Other thematic stocks related to Lee Jae-myung, including e-STARCO, DGENX, Novatech, ILSUNG Construction, Hyungji Elite, and ATEC, saw their stock prices rise nearly 30%.
In contrast, thematic stocks related to opposition party candidates for the next presidential election showed price limits downward. Kolon Mobility Group, touted as a thematic stock for National Assembly Speaker Woo Won-sik, ended the day down 29.27% (1,130 won) at 2,730 won. Compared to the intraday high of 4,165 won, the decline was 34.5%. SG Global and PN POONGNYUN, classified as thematic stocks for Gyeonggi Governor Kim Dong-yeon, also finished the day at the price limit downward.
The Seoul High Court's Criminal Division 6-2, presided over by Director General Choi Eun-jung, Lee Ye-seul, and Jung Jae-o, acquitted Lee in the case related to the violation of the Public Official Election Act. This overturned the first instance ruling that sentenced Lee to one year in prison with a two-year probation.
The verdict regarding Lee was not released before the regular market closure at 3:30 p.m. However, the stock prices fluctuated every time the court made a judgment related to the charges against Lee.
Lee was indicted for allegedly publishing false information about the Daejang-dong project while appearing on broadcasts and during the National Assembly audit in Gyeonggi Province ahead of the 20th presidential election in 2021.
The problematic statements can be categorized into three main issues. 1. Claiming not to know Kim Moon-ki. 2. Saying that the photo taken while playing golf with the late Kim Moon-ki, who was in charge of the Daejang-dong development project, was manipulated. 3. Stating that the Ministry of Land, Infrastructure and Transport pressured him to change the land use of the Korean Food Research Institute site in Baekhyeon-dong.
When the court stated that 'the prosecution's actions are not an abuse of its prosecutorial power,' the previously hesitant thematic stock prices quickly rose when news was reported that 'the claim of not knowing Kim Moon-ki could not be seen as false information' and 'the Baekhyeon-dong statement also could not be punished as false information.'
However, political thematic stocks are often not related to actual politicians, and the volatility is significant, necessitating caution from investors.