Soju maker's shares soar 30% on semiconductor factory hopes

Bohae Brewery, a Kospi-listed liquor company, hit the daily upper price limit Tuesday on expectations that a semiconductor factory could be built in the Honam region. Korea Exchange designated the stock a Caution issue for the day and warned it could be elevated to an Investment Warning designation.

As of 10:30 a.m. Tuesday, Bohae Brewery shares were trading at 3,040 won, up 29.91 percent from the previous session — the maximum daily gain allowed.

The share price has surged for four consecutive sessions. After soaring 42 percent from June 18 through Monday, the stock hit the upper limit again Tuesday, rocketing from the 1,400-won range to the 3,000-won level in a matter of days.

The rally appears to be driven by buying interest in Bohae Brewery's real estate holdings in Jangseong-gun, South Jeolla Province, which has emerged as a candidate site for a semiconductor factory as expectations for a Honam-region facility have grown.

Bohae Brewery is a liquor specialist that produces soju, bokbunja wine, maesil liquor and makgeolli. The company operates a manufacturing plant in Jangseong-gun, South Jeolla Province.

Korea Exchange designated Bohae Brewery a Caution issue for Tuesday, citing a share price gain of more than 60 percent over the past five sessions as the reason.

The exchange said it would decide after Tuesday's market close whether to elevate the stock to an Investment Warning designation. Under exchange rules, a stock that surges sharply over a given period can be moved from Caution to Investment Warning and then to Investment Risk status, at which point trading can be suspended.