[Special Stocks] Korean Shipbuilding Stocks Rise in Unison... Expected 'Reflex Benefit' from US Sanctions on China

As the United States has launched a trade barrier investigation into China's shipping, logistics, and shipbuilding industries, domestic shipbuilding stocks are showing a unified upward trend in the stock market on the 23rd.

Hanwha Ocean was trading at 34,700 KRW, up 7.76% from the previous day's closing price as of 10:26 a.m. It briefly exceeded 35,500 KRW per share during the session before undergoing a slight correction. HD Korea Shipbuilding & Offshore, the intermediate holding company for the shipbuilding division of HD Hyundai Heavy Industries Group, also rose more than 5%.

Affiliates of Hyundai Heavy Industries Group such as HD Hyundai Heavy Industries and HD Hyundai, as well as STX affiliates including STX Heavy Industries, STX Engine, and STX Greenlogis, are showing a price increase trend of 3-5%. Samsung Heavy Industries is also up around 3%. This is interpreted as reflecting expectations that domestic shipbuilding companies will benefit from the increased possibility of trade sanctions against shipbuilding and shipping companies.

On the 17th, the U.S. Trade Representative (USTR) announced the initiation of an investigation under Section 301 of the U.S. Trade Act targeting China's shipping, logistics, and shipbuilding industries. Known as the "Super 301," Section 301 of the U.S. Trade Act is an economic security law that allows the U.S. administration to investigate foreign trade practices and impose sanctions on imports if trade barriers are identified.

However, there are counterarguments to the forecast that Korean shipbuilders will gain indirect benefits. In a recent interview with the global shipping information outlet TradeWinds, Nomura Securities pointed out, "Even if the U.S. government finds unfair practices by China, it will be difficult to directly regulate them," adding, "It is unlikely that Korean shipbuilders will gain much indirect benefit."

This content was produced with the assistance of AI translation services.