Politically themed stocks stir market as impeachment process moves forward

National Assembly Speaker Woo Won-shik, left, and Reform Party leader Rep. Lee Jun-seok hold talks at the National Assembly in Seoul, Dec. 4.

Yonhap By Lee Yeon-woo So-called "politically themed shares" — stocks investors believe are connected to high-profile politicians — are once again demonstrating volatility, buoyed by the possibility of an administration change. Stocks tied to National Assembly Speaker Woo Won-shik and Reform Party leader Rep. Lee Jun-seok are surging, while those associated with ruling People Power Party leader Han Dong-hoon and Democratic Party of Korea leader Rep.



Lee Jae-myung are seeing sharp declines as political landscapes shift. Read More Stocks related to DPK, PPP leaders surge amid growing calls for Yoon’s resignation Stock market ends lower as investors are still concerned about political uncertainties National Assembly votes to impeach President Yoon Suk Yeol over martial law Ball now in Constitutional Court According to the Korea Exchange (KRX) on Tuesday, SAMBO Industrial was designated as an "investment caution stock." Investors view the company as linked to Lee, as his father previously served as court-appointed administrator of its subsidiary.

On Monday, the first trading day after a motion to impeach President Yoon Suk Yeol was passed in the National Assembly, buying pressure pushed the company's share price, hitting the daily upper limit within just two minutes. However, on Tuesday, it plunged more than 11 percent. NextEye, where Lee's father also served as a member of the audit committee until 2019, also demonstrated significant fluctuations.

Its stocks surged by 29.85 percent on Monday, even reaching its highest price since February during Tuesday's market. However, it pared its gains on Tuesday.

This rally is influenced by speculation that Lee might run for president if an early election is held following the Constitutional Court's approval of Yoon's impeachment. Lee stated he is "seriously considering" running for office on Saturday. Nimble retail investors also flocked to stocks they believe are connected to Woo, who has garnered public support following the martial law incident.

Bankware Global and Kolon Mobility Group, whose founders attended the same high school as Woo, each hit their respective daily price limits on Monday. Despite the KRX designating Bankware Global as an investment caution stock, it ended Tuesday's trading session with a 15.17 percent increase compared to Monday.

Kolon Mobility Group also posted a 7.92 percent gain. As market volatility intensifies, the number of stocks with investment warnings from the KRX is also increasing.

Since the day after Yoon declared martial law, the KRX has placed 34 listed companies under an investment warning status. This designation is one level stricter than an investment caution, and it results in a one-day trading halt for the stock. Only e-Starco, a real estate development company, addressed the rumors, stating it has "absolutely no connection whatsoever to Lee Jae-myung.

" The company's share price has seen repeated surges and declines amid speculation that it would benefit from Lee's public housing policies if he were to be elected..