On the morning of the 7th, Union Materials, a rare-earth-related stock, hit the upper price limit. Union's subsidiary Union Materials produces items such as "ferrite magnets," known as alternatives to rare earths.
As of 9:16 a.m. that day, Union Materials was trading at 1,747 won on the main bourse, up 403 won (29.99%) from the previous session. The parent company, Union, also saw its share price rise 1,065 won (25.45%) to 5,250 won from the day before.
Other stocks grouped as related plays, including Novatech (6.62%) and Dongkuk R&S (12.05%), were also on the rise.
Earlier, China's Ministry of Commerce said on its website the day before that it would "ban exports of all dual-use items to Japanese military users and for military purposes, as well as for other end uses that help enhance Japan's military capabilities."
China's Ministry of Commerce did not make clear whether rare earths, which have been cited as a pressure card against Japan, were included in the export controls. However, given that some rare earths are already included on China's existing export license list for dual-use items, some observers say it is hard to rule out the possibility that rare earths were included in the latest controls.