On the 25th, construction companies based in Gwangju and South Jeolla have been strong for three straight days on news that Samsung Electronics and SK hynix could invest in semiconductors in the Honam region.
As of 9:35 a.m. that day on the KOSDAQ market, Kumho E&C was trading at 6,630 won, up 1,530 won (30%) from the previous session. Namhwa Construction was also up 29.96%.
Kumho E&C and Namhwa Construction closed at the upper limit (the top of the daily limit band) on the 24th. The previous day, they hit the upper limit intraday but widened their intraday losses, with Kumho E&C closing up 5% and Namhwa Construction closing down 14%.
As reports continued to suggest that a semiconductor plant could be built in the Honam region, buying interest appeared to flock to local construction stocks. There is also an outlook that investment plans will be unveiled at a public-private joint meeting on June 29 to discuss achieving balanced national development.
The two companies are reportedly reviewing plans to build memory semiconductor production lines (front-end), advanced packaging (back-end), and AI data centers in a semiconductor cluster to be created in the Honam area. The investment is said to be in the hundreds of trillions of won.