Theme stocks linked to Oh Se-hoon, the People Power Party candidate, surged across the board after he defeated Democratic Party candidate Jung Won-oh in the June 3 Seoul mayoral election. Jung conceded defeat and extended congratulations to the mayor-elect on Tuesday morning.
According to the Korea Exchange, stocks classified as Oh Se-hoon-related were rallying as of 9:43 a.m. on Tuesday. Jinyang Chemical (051630.KS) hit the upper price limit, while Jinyang Poly (010640.KS) and Jinyang Industry (003780.KS) climbed 25.83% and 19.21%, respectively. The stocks have been grouped as Oh Se-hoon themes in the market because Yang Joon-young, the chief executive of Jinyang Holdings that leads these companies, is a university alumnus of the mayor-elect.
Stocks tied to the redevelopment of the Seoul Express Bus Terminal also gained, reflecting expectations that Oh's election will accelerate the project.
As of 9:36 a.m., Dongyang Express (084670.KS) traded at 45,050 won, up 15.81%, while Cheonil Express (000650.KS) and Shinsegae (004170.KS) rose 12.64% and 11.07%, respectively. Cheonil Express is the second-largest shareholder of the Seoul Express Bus Terminal with a 16.67% stake, and Dongyang Express also holds a 0.17% stake. Shinsegae operates a department store inside the terminal.
In contrast, theme stocks linked to candidate Jung Won-oh could not avoid weakness. Sampyo Cement (038500.KS) fell 11.50%, and SJ Group (306040.KS) dropped 29.05%. The two companies, classified as Seongsu-dong-affiliated firms, had been cited as theme stocks given Jung's previous tenure as Seongdong-gu district mayor.
Political theme stocks tied to the by-election also showed mixed moves. Hwacheon Machinery (010660.KS), considered linked to Rebuilding Korea Party candidate Cho Kuk, plunged 28.47% from the previous session to trade at 3,165 won. Meanwhile, Duksung preferred shares, linked to independent candidate Han Dong-hoon, displayed high volatility, rising in early trading on news of Han's victory before turning lower.
