[Stock in Focus] Korean Rare Earth Stocks Surge on China's Export Ban to Japan

Union Materials Hits Upper Price Limit

On January 7, stocks related to rare earth materials showed strong gains early in the trading session. Union Materials immediately hit the upper price limit as soon as the market opened.

As of 9:31 a.m. on the same day, shares of Union Materials on the Korea Exchange were trading at 1,747 won, up 29.99% from the previous trading day. Union Materials manufactures products such as ferrite magnets, which are known as alternative materials to rare earth elements.

The parent company of Union Materials, Union, was also trading at 5,080 won, up 21.39% from the previous trading day. In addition, Samhwa Electronics (up 14.49%) and Sung An Materials (up 8.00%) were also rising.

At the same time on the KOSDAQ market, EG (up 15.28%), Dongkuk R&S (up 9.82%), Cenotec (up 5.54%), and T-Flex (up 4.90%) were also surging.

This surge appears to be driven by growing expectations of indirect benefits for domestic rare earth-related companies after China began using its rare earth export controls as leverage against Japan. On January 6, the Chinese Ministry of Commerce announced, "We will ban the export of all dual-use items to Japanese military users, for military purposes, and for any other end users that contribute to strengthening Japan's military capabilities."

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