Stocks related to inter-Korean cooperation surged following reports that President Donald Trump may hold a summit with North Korean leader Kim Jong Un as early as this fall. However, analysts caution that these stocks are typical thematic plays without fundamental improvements, urging investors to exercise caution.
On August 19, the Korea Exchange reported that stocks classified as inter-Korean cooperation shares showed strong performance. Indief recorded a 29.85% increase, closing at 3,110 won, hitting the upper limit. Good People also rose by 29.84%, finishing at 557 won. Both Indief and Good People are clothing companies that previously operated in the Kaesong Industrial Complex. Hyungji Elite also saw a 2% increase by the end of trading.
Ananti closed at 5,350 won, up 18.89%. The company has historical ties to the Mount Kumgang tourism development project. Additionally, Codez Combine rose by 3.56% to 3,635 won, while JST finished up 2.08% at 2,210 won.
The rise in inter-Korean cooperation stocks is attributed to renewed optimism regarding U.S.-North Korea relations, following President Trump's expressed willingness to engage in dialogue.
The Wall Street Journal reported on August 18 that Trump has urged his aides to push for a meeting with Kim this fall and discussed the possibility of a face-to-face meeting during his next visit to Asia. The Asia-Pacific Economic Cooperation (APEC) summit in Shenzhen, China, in November has been mentioned as a potential venue.
The South Korean government has also shown a positive stance on the possibility of resuming U.S.-North Korea dialogue. Foreign Minister Park Jin stated in the National Assembly that, given the nature of Trump's outreach, if Kim desires a meeting, it will happen in some form, calling it a very desirable development from the government's perspective.
* This article has been translated by AI.
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