As domestic markets fell last week, a wave of theme stocks surged in the short term — driven not by earnings results or order backlogs, but by regional ties or feel-good stories circulating on social media.
According to Korea Exchange, Hansung Enterprise was the top-performing stock for the week of July 6–10, surging exactly 100 percent over the period.
Hansung Enterprise's share price doubled from 4,230 won on July 3 to 8,460 won on Friday. The seafood processed-food maker, best known for its "Kraemy" brand imitation crab sticks, had been facing delisting after falling short of the market capitalization threshold under tightened listing maintenance requirements — a situation that sparked a wave of online support.
No specific earnings catalyst — such as a brokerage report or corporate disclosure — emerged to justify the rally. Instead, feel-good stories spreading online, including accounts of the company hosting concerts for war veterans, appear to have drawn a flood of "cheering investment" buying.
Monami, which had been dogged by weak earnings and delisting rumors, also saw a surge of online support. Retail investor buying pushed its share price up 25.66 percent on Friday. In response, Monami CEO Song Jae-hwa posted a handwritten letter of gratitude on the company's official website on Saturday.
"Your support and belief in Monami, even in these difficult circumstances where delisting was a real possibility, has been an immeasurable source of strength for us," Song wrote. "We will use the foothold you have given us to repay your trust with better products and genuine quality."
Stocks linked to the Honam region semiconductor cluster — one of the government's three "mega projects" — also posted sharp gains. Kumho Electric and Kumho Engineering & Construction surged 79.62 percent and 77.05 percent, respectively, over the week, ranking second and third in overall returns. Kumho Electric climbed from 741 won to 1,331 won, while Kumho Engineering & Construction rose from 9,500 won to 16,820 won.
Kumho Engineering & Construction, buoyed by expectations of orders tied to the semiconductor cluster development plan, hit an intraday 52-week high of 19,380 won on Friday. Its preferred shares also gained 34.80 percent over the week.
The rally continued even after Korea Exchange designated both Kumho Engineering & Construction and its preferred shares as Caution and Warning stocks, and signaled a possible Danger designation. Trading in the preferred shares was suspended for the entire day on July 2 after the price continued to climb even following the Warning designation.
The designations are part of the exchange's market alert system, which flags stocks showing signs of potential unfair trading — such as sharp price spikes or concentrated buying from a small number of accounts. The system has three tiers: Caution, Warning and Danger.
Seosan, a Gwangju-based concrete company, rose 72.49 percent over the week, ranking fourth in returns. Kumho Tire drew attention as a beneficiary of both the semiconductor cluster and broader regional development, given that its Gwangju factory site sits near Gwangju Airport and Gwangju Songjeong Station. Its share price surged 64.56 percent over the week, from 4,740 won to 7,800 won, placing it sixth in returns. Gwangju Shinsegae also jumped 28.02 percent.
The gains stand in sharp contrast to the broader market, where the Kospi fell 7.57 percent and the Kosdaq dropped 3.57 percent over the same period.
The rally was further fueled by news that the government had selected the Gwangju military airport site for the Honam region semiconductor cluster, and that President Lee Jae-myung had since called for the project to be fast-tracked.
The sharp price moves were amplified by the relatively small market capitalizations of the stocks involved, which allowed even modest inflows to drive outsized gains.
Retail investors net purchased 34.85 billion won worth of Kumho Tire shares last week, ranking it eighth among all individual stocks by net purchase volume. Foreign investors net sold 14.59 billion won worth of the stock over the same period, while institutional investors net sold 15.96 billion won.
Market analysts said the theme-driven buying has some basis in reality, but cautioned that it will take time to confirm whether these companies will actually benefit.
Not all stocks grouped under the Honam theme held their gains, however. Some saw early enthusiasm fade quickly.
Namhwa Industrial and Nam Hwa Construction fell 7.71 percent and 6.21 percent, respectively, over the week. Bohae Brewery, a liquor maker based in the Honam region, also slipped 1.69 percent.
hss@heraldcorp.com
