Business · Markets · 1 hr ago
Gwangju semiconductor plan lifts shares in regional companies
Shares in two companies based in the Gwangju and South Jeolla region rose sharply in South Korea on Monday.
Kumho Electric was up 21% and Kumho Construction was up 16% in early trading.
The companies have been treated as stocks linked to a planned semiconductor cluster in Honam, a region in southwestern South Korea.
SK Group chairman Chey Tae-won visited the proposed site, at Gwangju's military airport, on Friday and said construction should move as quickly as possible if conditions allow.
The shares had surged after the plan was announced in June, then fell from last month as questions about its feasibility gained attention.
Chey's visit and renewed comments appear to have prompted the latest rebound.
The sources do not say when construction will begin or whether the plan has received final approval.
Shares in companies linked to the Honam semiconductor cluster plan rose sharply in early trading on Oct. 12.
SK Group Chairman Chey Tae-won visited the planned site last week and said the project should proceed as quickly as possible.
Kumho Electric rose 21% and Kumho Construction rose 16% in morning trading, according to Yonhap.
Seosan rose 30%, the daily limit, according to the Chosun Ilbo.
The shares had previously fallen amid questions about the plan’s feasibility.
- Who
- Kumho Electric, Kumho Construction and Seosan shares rose; SK Group Chairman Chey Tae-won visited the planned cluster site.
- What
- Shares linked to the Honam semiconductor cluster plan rose sharply in early trading.
- When
- Oct. 12, 2026.
- Where
- The planned site is the former military airport in Gwangju; the reported share moves were in South Korea.
- Why
- Chey’s visit and statements about moving quickly on the project were seen as lifting investor interest.
This story does not have two clearly opposing sides.
If I think conditions are in place to build the factories, we will build as much as possible at the fastest pace.
We need to do something at the fastest possible pace.
If China or the U.S. company Micron expands capacity faster, our country’s market share will shrink.
The Honam semiconductor cluster plan was announced.
Kumho Electric and Kumho Construction had risen 2,000% and 300%, respectively, since the plan was announced.
The shares had been falling amid concerns including questions about the plan’s feasibility.
Chey visited the planned site at Gwangju’s former military airport and said he would build quickly if conditions allowed.
Chey said in Shanghai that the project needed to move as quickly as possible.
Shares linked to the plan surged in early trading.
- Kumho Electric
- Up 21% to 10,310 won at 9:23 a.m. on Oct. 12
- Kumho Construction
- Up 16% to 12,960 won at 9:23 a.m. on Oct. 12
- Seosan
- Up 30% to 6,760 won at 9:36 a.m. on Oct. 12
- Planned site
- Former military airport in Gwangju
- Kumho Electric's earlier rise
- 2,000% from June to August 2026
Sources
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