Since the government released a "mega project" for an AI transformation, regional construction stocks have been strong. It is seen as reflecting expectations that construction companies will get more work as large industrial complexes are developed.
As of 9:16 a.m. on the 2nd, Kumho E&C is trading at 17,890 won on the Korea Exchange, up 3,350 won (23.04%) from the previous session. Dongsin Construction (27%), Namkwang Engineering & Construction (17.99%), and Ilsung Construction (29.76%) are also strong.
On the 29th, the government released plans to invest about 1,500 trillion won in semiconductors and AI. In particular, as investment locations were selected outside the capital area for balanced regional development—such as Honam, Chungcheong, and Yeongnam—construction stocks based in those regions are surging.
Kim Sun-mi, a researcher at Shinhan Investment & Securities, said, "Given rules favoring bids by regional construction firms—such as mandatory regional joint contracting, evaluation of contributions to the regional economy in the comprehensive review bidding system, and stricter criteria for recognizing regional firms—regional construction companies are highly likely to participate in joint or solo bids for infrastructure and hinterland development projects."