A new era of so-called “million-won stocks” is taking shape in South Korea as a market rally pushes more shares above 1 million won. In less than five months, the number of such stocks has grown to nine from four, and the pipeline of potential newcomers is also expanding.
The Korea Exchange said the KOSPI closed Thursday up 57.88 points, or 0.90%, at 6,475.81, extending its run of three straight record closes. The index briefly topped 6,500 in intraday trading. The gains came despite external uncertainty over stalled ceasefire talks between the United States and Iran, as buying concentrated in sectors seen as beneficiaries of the postwar environment, including semiconductors and defense.
As the rally accelerated, more stocks joined the million-won club based on closing prices: Hyosung Heavy Industries (3,268,000 won), Korea Zinc (1,674,000), Samsung Biologics (1,514,000), Doosan (1,442,000), Hanwha Aerospace (1,425,000), Samyang Foods (1,344,000), SK hynix (1,225,000), Taekwang Industrial (1,217,000) and HD Hyundai Electric (1,129,000). The count has more than doubled from four at the end of last year. A day earlier, LIG Defense & Aerospace closed at 1.02 million won, putting it on the verge of becoming the 10th member.
Hyosung Heavy Industries has been at the center of the surge. Its share price, 1,781,000 won at the end of last year, climbed to a closing 3,058,000 won on April 13, breaking above 3 million won. It is now the highest-priced stock among listed Korean companies. A close above 3 million won was the first in 11 years since Amorepacific and the third such case on record. Brokerages have raised targets accordingly, with Yuanta Securities setting a target price of 4.2 million won.
Targets for other high-priced stocks have also been moving higher. Shinhan Investment raised its target for Korea Zinc to 1.9 million won, forecasting further gains. Hana Securities lifted its target for LIG Defense & Aerospace by 56.3% to 1.11 million won. Hana said expectations for exports of the Cheongung-II air defense system could persist because shortages of Patriot interceptor missiles continue and rapid production increases are difficult in the short term.
The next tier is also growing. Nine stocks closed above 500,000 won, including Samsung Electro-Mechanics (774,000 won), SK Square (728,000), HD Hyundai Heavy Industries (641,000) and Samsung SDI (630,000).
Still, some in the market are wary of what is sometimes called the “million-won stock curse.” Past cases show that after reaching the milestone, some stocks have faced pullbacks as liquidity thins and valuations look stretched. An industry official said, “Whether they settle in at these levels will ultimately be decided by earnings and the order pipeline.”
* This article has been translated by AI.
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