Lee Jae-myung, the presidential candidate from the Democratic Party of Korea, has recently emphasized renewable energy pledges, including the "sunlight pension," amid strong performances from solar-related stocks.
According to the Korea Exchange on the 14th, as of 9:41 a.m., Hanwha Solutions is trading at 36,700 won, an increase of 3,000 won (8.90%) from the previous trading day. The preferred stock of Hanwha Solutions is also up by 6.82%.
At the same time, OCI Holdings is trading at 81,700 won, up by 7,800 won (10.55%) from the previous trading day. HD Hyundai Energy Solutions is also trading at 37,000 won, an increase of 3,100 won (9.14%).
This is interpreted as investors' sentiment shifting toward related stocks following Lee's reiterated emphasis on renewable energy pledges. In recent campaigning, Lee said, "I will expand solar farming to provide a 'sunlight pension' and establish 'sunlight income villages' led by residents."
"Sunlight pension" is a system currently implemented in Sinan County, Jeollanam-do, which distributes 30% of the profits from solar power companies to local residents. In Jeju Island, 17.5% of wind power profits are paid to residents as a "wind pension." Lee's plan seems to aim at expanding this model nationwide.
Additionally, independent of the tariff negotiations between the United States and China, the U.S. Department of Commerce's decision to maintain tariffs on Chinese solar products is seen as a positive factor.
Earlier, the U.S. Department of Commerce announced it would impose high anti-dumping tariffs and countervailing duties on Chinese solar products manufactured in Southeast Asia starting in June. This measure aims to block Chinese solar products from entering the U.S. market through Southeast Asian countries. Consequently, domestic solar industry players like Hanwha Solutions and OCI Holdings are expected to gain indirect benefits.