Korean stocks mixed after Trump’s win in U.S. election

First Deputy Director of the 6th National Security Office, Kim Tae-hyo, briefs on President Yoon Suk Yeol’s phone call with U.S. President-elect Donald Trump at the Presidential Office in Yongsan, Seoul, on the 7th. (Yonhap)

South Korea’s stock market was mixed on Thursday amid rising global volatility after former U.S. President Donald Trump’s win in the election.

According to the Korea Exchange on Thursday, shipbuilding stocks surged following Trump’s phone conversation with Korean President Yoon Suk Yeol, where he mentioned cooperation in the shipbuilding sector.

Hanwha Ocean Co. closed at 33,850 won ($24.49), up 21.76 percent, marking the highest gain in the benchmark Kospi index.

HD Hyundai Heavy Industries Co. also increased 15.13 percent on Thursday, Samsung Heavy Industries Co. gained 9.17 percent, and HD Hyundai Marine Solution Co. hiked by 8.11 percent.

Trump said during his call with Yoon that the U.S. shipbuilding industry needs support and cooperation from Korea.

“I am well aware of Korea’s ability to build world-class warships,” Trump said. ”I think we need close cooperation not only in ship exports but also in the field of maintenance, repair and overhaul.”

Defense-related stocks also gained ground as Trump’s calls for defense cost-sharing with major countries fueled expectations of new export opportunities.

Shares of Hanwha Aerospace Co. closed 4.52 percent higher on Thursday and those of LIG Nex1 Co. 3.66 percent higher, after reaching new 52-week highs during the day.

Korea Aerospace Industries Ltd. (KAI) increased 1.82 percent.

SeAH Besteel Holdings Corp, another defense-related stock, also closed up 21.27 percent at 23,600 won.

“With an increased trend in the North Atlantic Treaty Organization (NATO)’s defense spending and arms purchases, there are prospects for expanded defense export opportunities and closer collaboration between Korea and NATO,” said Byun Yong-jin, an analyst at iM Securities Co.

In contrast, eco-friendly stocks, such as secondary batteries and solar energy, closed the day weaker, as concerns grew that Trump may review green energy policies, affecting investor sentiment.

Samsung SDI Co. hit a new 52-week low for the first time in three months, closing down 3.52 percent to 288,000 won.

SK innovation Co. dropped by 4.51 percent, and LG Energy Solution Ltd. by 1.15 percent.

Among battery materials stocks, L&F Co. shares declined sharply, closing down 7.83 percent at 106,000 won.

Solar stocks also hit 52-week lows.

Hanwha Solutions Co., the parent company of Hanwha Q Cells Co., which is engaged in the solar module and solutions business, dropped 5.87 percent to 18,920 won, hitting a new 52-week low.

OCI Holdings Co. and its subsidiary OCI Co., both major solar-related stocks, also hit new 52-week lows, falling by 4.98 percent and 4.76 percent, respectively.

Trump previously announced intentions to abolish the Advanced Manufacturing Production Credit (AMPC) subsidies under the Inflation Reduction Act (IRA).

He also criticized wind and solar energy as costly and inefficient during his first term.

“If Republicans control both the Senate and the House of Representatives, the IRA tax credits could potentially be repealed,” said Jung Won-seok, an analyst at iM Securities. “Even if this is not the case, Trump could influence the IRA’s execution and policy direction through executive orders.”