The anticipation surrounding the government's semiconductor mega project continues to bolster construction stocks. Investors are optimistic about the benefits stemming from large-scale industrial infrastructure investments, including semiconductor clusters and data centers.
As of 1:35 PM on July 2, five companies, including Dongshin Construction (up 29.97%), Shinwon General Development (up 29.94%), Daewon (up 29.93%), Jinhung Enterprise (up 29.92%), and Ilseong Construction (up 29.76%), reached their daily price limits. Kyeryong Construction also surged by 26.05%, while Woowon Development (up 24.81%), Sangji Construction (up 20.61%), Dongwon Development (up 17.98%), Samho Development (up 12.51%), and IS Dongseo (up 9.89%) saw significant gains.
Additionally, other construction stocks such as Namkwang Engineering & Construction, SGC E&C, KCC Construction, Seohan, and Seohi Construction maintained strong performance. In contrast, Kumho Construction (-19.39%) and Namhwa Construction (-9.87%) faced declines as profit-taking occurred.
The strength of construction stocks is attributed to expectations surrounding the government's large-scale investment plans in advanced industries. President Lee Jae-myung has outlined a blueprint for a total investment of 2,000 trillion won, focusing on semiconductors, data centers, and physical AI industries.
Market analysts anticipate that the establishment of large semiconductor clusters and data centers will not only lead to the development of industrial sites but also increase demand for factory construction, infrastructure such as roads and power, and residential complexes in the surrounding areas. Consequently, the expectation of expanded new orders for construction companies is reflected in their stock prices.
* This article has been translated by AI.
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