Aekyung Chemical (161000.KS), which has begun Korea's first domestic production of TPC (terephthaloyl chloride), a key raw material for aramid fiber, attracted buying interest throughout the trading session and closed with a 22% surge. Aekyung Industrial (018250.KS) also posted gains on news that its acquisition by Taekwang Group was successfully completed.
On the Korea Composite Stock Price Index (KOSPI) on Tuesday, Aekyung Chemical closed at 11,400 won, up 22.58% from the previous trading day. The stock opened at 11,230 won, already up 20.75%, and hit an intraday high of 11,480 won — a 23.44% jump that marked its highest price this month. The rally followed a more than 10% surge in after-hours trading the previous day, with the momentum carrying into the regular session. Aekyung Industrial also closed up 6.62% on the same day, rising in tandem.
The key catalyst behind the stock's surge was the previous day's news of TPC mass-production facility completion. On Monday, Aekyung Chemical held a completion ceremony for its TPC mass-production facility with an annual capacity of 15,000 tons at its Ulsan plant, attended by approximately 200 people including Chae Hyung-seok, vice chairman of Aekyung Group.
TPC is a core raw material for aramid, a so-called "super fiber" that is lighter and stronger than steel with flame-resistant properties. It is essential in high-strength, high-heat-resistant advanced industrial applications such as firefighting protective gear, aerospace, electric vehicle tire cords and optical cables. Korea had been entirely dependent on imports for TPC, but Aekyung Chemical is credited with opening the door to domestic production for the first time after more than 10 years of research and development. The company said it plans to consider phased production expansion in line with future demand growth trends. "It is very meaningful that we can contribute to strengthening the competitiveness of Korea's aramid industry," CEO Pyo Kyung-won of Aekyung Chemical said. "We will wisely overcome the difficulties in the petrochemical industry and build a sustainable growth foundation centered on high-value-added materials."
The resolution of uncertainty surrounding Aekyung Industrial also significantly improved investor sentiment. On Monday, Aekyung Industrial completed its final acquisition procedures with Taekwang Industrial (003240.KS) and was officially incorporated as a Taekwang Group affiliate. Analysts noted that the full removal of corporate governance uncertainty related to the management stake sale — which had long weighed on the stock — unleashed pent-up buying demand that fueled the share price rally.
