The Lee Jae-myung government is pushing for stock market stimulus measures, including amendments to the Commercial Act, and expectations are rising that holding companies may be reevaluated, leading to strong performance in holding company stocks in early trading on the 4th.
As of 9:47 a.m. on that day, Hanwha is trading at 86,400 won, up 9,200 won (11.92%) from the previous trading day. During the day, Hanwha rose to 89,300 won, setting a new one-year high.
In addition, other holding companies such as CJ (8.42%), LS (8.03%), SK (5.81%), and LG (3.95%) are also on the rise at the same time.
The Democratic Party of Korea noted that during the presidential election period, it would promote the enhancement of transparency in corporate governance and amendments to the Commercial Act to stimulate the domestic stock market. In particular, it aims to expand the fiduciary duty of directors from 'the company' to 'the company and shareholders,' activate the cumulative voting system, prioritize the allocation of new shares to general shareholders of the parent company during a split listing, and principle the cancellation of treasury stocks.
This is interpreted as stimulating investment sentiment toward holding companies that have been undervalued. Tae Yoon-seon, a researcher at KB Securities, said, “Considering the stock market stimulus related to the implementation of promises since the new government was established and strengthening protections for general shareholders, continuous interest in holding companies as well as those related to finance, shipbuilding, defense, nuclear power, and artificial intelligence (AI) is necessary.”