In early trading on the 30th, construction stocks in the Gwangju–South Jeolla region are broadly weaker. The move is seen as the result of profit-taking after the government, Samsung Electronics, and SK hynix announced plans the previous day to build a semiconductor cluster in the southwest.

Lee Jae-myung President, Lee Jae-yong Samsung Electronics Chairman, and Chey Tae-won SK Group Chairman strike a fighting pose at the National Briefing on the Three Mega Projects for Korea's Great Leap Forward held at the Blue House State Guest House on the 29th./Courtesy of News1.

As of 9:27 a.m. that day, Namhwa Construction was down 500 won (5.76%) at 8,180 won on the KOSDAQ market from the previous session. Gwangju Shinsegae was also trading at 44,550 won, down 6,000 won (11.9%) from the previous session.

By contrast, Kumho E&C was up 2.32% at 8,810 won, while Kumho E&C(1P) was up 26.92% at 33,000 won.

At the "three mega projects public briefing" held the previous day, Samsung Electronics and SK hynix unveiled plans to build a 1,500 trillion won semiconductor production base, including 800 trillion won worth of semiconductor fabs (plants) in the southwest. They said they plan to invest 2,655 trillion won and 1,100 trillion won nationwide over the mid to long term.

The surge in construction stocks in the Honam region, driven by expectations for a southwest semiconductor cluster, appears to have led investors to take profits. Namhwa Construction and Kumho E&C had posted sharp gains for four straight sessions since on the 24th.

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