By Park Hyong-ki
As the presidential election came to an end with Moon Jae-in’s landslide win reducing uncertainty, politically driven stocks linked to candidates have fallen.
Some tech shares linked to the Moon government’s policy promoting the Fourth Industrial Revolution are expected to see growth, analysts say.
Stocks such as DSR Wire, BMT and Wooridul Pharmaceutical, which had gained during Moon’s campaign, are restabilizing, falling to levels before their exorbitant hype.
AhnLab, a vaccine software program maker, also nosedived more than 70 percent over the last month from its high of 14,900 won per share.
Financial regulators previously warned investors of these politically themed stocks that they have nothing to do with the presidential candidates.
BMT, which makes valves, filed a disclosure, saying, “We have no relations with the former leader of the Democratic Party of Korea Moon Jae-in.”
Its shares had increased amid misinformation that the two were somehow connected as the company is based in Yangsan, South Gyeongsang Province, where Moon owns a house.
Also, DSR Wire, a producer of wires and fiber ropes, saw its shares increase to above 10,000 won from around 7,000 won as its chief executive went to the same high school as Moon.
Wooridul shares rose to a 52-week high of 28,600 won, but are falling toward 12,000 won. This company also has nothing to do with Moon. In 2003, former President Roh Moo-hyun was treated at Wooridul’s hospital.
AhnLab shares saw growth amid the rise of Ahn Cheol-soo of the People’s Party as the potential leader and commander-in-chief of Korea who closely contended with Moon.
But Ahn said during televised debates, “I have not been involved in the company’s management for more than 10 years.”
Ahn has an 18.6 percent stake in the company and is its largest shareholder, according to its audit filing.
Tech shares such as Koh Young Technology, a semiconductor equipment maker, and Mobile Appliance, a software developer, are likely to rise as the new government seeks to implement policies promoting the Fourth Industrial Revolution.
“The market can expect to see the expansion of electric vehicles, the internet of things and artificial intelligence,” said Kim Sang-pyo, an analyst at Kiwoom Securities.