When a $200 billion (approximately 271 trillion won) investment project in the United States was unveiled, nuclear and steel stocks rose in the domestic stock market. Financial investment industry experts predicted that overseas expansion by nuclear companies would become even more active. However, given that differences in position between South Korea and the United States have emerged over the Alaska liquefied natural gas (LNG) development project, volatility in steel stocks appears inevitable.
According to Korea Exchange on the 1st, nuclear stock Wonil T&I recorded a daily limit up, closing regular trading at 10,850 won.
Other nuclear stocks also rose in tandem, including Withtek (4.72%), Beatsro Tech (3.48%), Orbitek (3.46%), Korea Electric Power Corporation Technology (2.61%), Korea Electric Power Corporation KPS (1.03%), and Doosan Enerbility (1.03%).
Steel stocks also surged. Daehan Steel recorded 9,100 won, up 1,310 won (16.82%) from the previous day. Kyungwoo Steel (5.02), SeAH Steel Holdings (4.56%), and Dongkuk Steel (4.55%) also rose.
As U.S. President Donald Trump revealed the details of the investment project in the United States on the 30th (local time), stocks expected to benefit all surged at once. The president stated that the South Korean government would invest up to $200 billion to build a 6GW (gigawatt) power generation facility, eight large nuclear power plants, and an Alaska LNG pipeline in Texas, United States. The South Korean government also plans to pursue acquiring a 5-10% stake in Westinghouse.
Experts analyzed that the investment project in the United States would become a growth driver, particularly for nuclear stocks. Lee Sang-heon, a researcher at iM Securities, said, "This announcement has concretized the nuclear business within the U.S. investment project," adding, "The impact of the U.S. investment project will continue to affect nuclear stocks going forward."
The securities industry is paying attention to the fact that two of the eight large nuclear power plants to be built in the United States are Korean-type APR1400 reactors. Lee Min-jae, a researcher at NH Investment & Securities, analyzed, "This means there is a possibility that the market share of APR1400 will expand in the medium to long term," adding, "If APR1400 construction proceeds, Korea Electric Power Corporation Technology can participate in design, Doosan Enerbility in core equipment including reactors, and domestic construction companies in construction."
Forecasts suggest that once the acquisition of a stake in Westinghouse is completed, cooperation between South Korea and the United States will be strengthened in the nuclear power industry, adding policy coordination with the U.S. to South Korea's strengths in engineering, procurement, and construction (EPC) capabilities. Expectations have also grown that export restrictions in overseas markets, including Europe, will be eased, laying the foundation for increased nuclear power exports.
On the other hand, steel stocks may face increased volatility. This is because the two countries' positions differ regarding the Alaska LNG development that drove up steel stock prices. While President Trump mentioned South Korea's participation in the Alaska LNG project definitively, the Ministry of Trade, Industry and Energy stated that it has only begun reviewing the matter, with no decision made yet on whether to invest or the scale of investment.
In fact, pipe stocks, which had been rising along with steel stocks on this day, also turned to a decline during trading. Kim Ju-yeon, a researcher at Mirae Asset Securities, said, "Steel and pipe stocks rose today based on Alaska LNG investment plans, but volatility expanded due to questions about the certainty of the project and profitability."
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