Construction stocks showed strong performance on July 30 after the Gwangju military airport site was designated as a candidate for the Honam region's semiconductor national industrial complex.
According to the Korea Exchange, as of 1:57 PM, Kumho Construction's shares rose by 2,190 won (30.00%) to reach the upper limit of 9,490 won. Namhwa Construction also saw an increase of 1,820 won (21.58%), trading at 4,620 won. Other construction-related stocks, including Ilseong Construction (10.55%), Dongshin Construction (6.53%), and Sangji Construction (5.94%), also experienced gains.
The surge in stock prices is attributed to investor optimism following the announcement that the Gwangju military airport site would be developed into a semiconductor industrial complex, which is expected to benefit construction and infrastructure projects. Both Kumho Construction and Namhwa Construction are headquartered in Gwangju and Jeonnam.
On the previous day, executives from SK Hynix visited the Gwangju military airport site to assess conditions for establishing a semiconductor fabrication plant and discussed specific implementation plans with Min Hyung-bae, the mayor of the Gwangju-Jeonnam Integrated Special City. Earlier, on July 23, SK Hynix's technical team conducted a preliminary site visit, followed by a site inspection by Samsung Electronics' team on July 25.
On June 29, the government announced a 'Southwest Semiconductor Mega Project,' in which Samsung Electronics and SK Hynix plan to invest a total of 800 trillion won to establish four advanced semiconductor fabs at the Gwangju military airport site. The government and the special city aim to facilitate the relocation of the military airport, develop the industrial complex, and establish power and water supply networks, with the goal of commencing mass production by 2030.
Expectations for a recovery in the construction market are also supporting investor sentiment. According to a report released by the Korea Institute for Industrial Economics and Trade on July 26, construction investment is projected to increase by 0.9% this year compared to the previous year, driven by the government's active fiscal input and improvements in leading indicators. If construction investment turns positive on an annual basis, it will be the first increase in six years since 2020.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.