중앙데일리

Inter-Korea trade companies fall

Firms with ties to Hyundai Asan fall whether involved in tourism in North Korea or not

July 15,2008
Shares in companies known to be related to inter-Korean economic exchange fell sharply yesterday after the death of a South Korean tourist during a trip to Mount Kumgang in North Korea on Friday.

Affiliates in the Hyundai Group sank, with Hyundai Merchant Marine falling 3.3 percent to 37,700 won ($37.5). Hyundai Group owns Hyundai Asan, the exclusive operator of tours from to the North. Hyundai Elevator dropped 3.5 percent, and Hyundai Securities lost 2.2 percent.

Early Friday morning, a North Korean soldier shot and killed a South Korean woman who was on the Mount Kumgang tour, but it was announced to the public after the stock market had closed for the day.

Hyundai Asan is not a listed firm. But, according to 38 Communications, which provides information about daily trading of over-the-counter stocks or non-listed stocks, Hyundai Asan fell 3.3 percent. Hyundai Express, also a non-listed firm, plunged 7.8 percent.

Some stocks, which are also classified by several local analysts as Inter-Korean business-related shares mainly because they are headquartered in North Korea’s Kaesong Industrial Complex or they have high chances of selling their products to the North, closed considerably lower in the day.

Seondo Electric and Kwangmyung Electric Engineering, both Kospi-listed, fell 14 percent and 10.6 percent, respectively. On the Kosdaq, Cheryong Industrial fell 11.4 percent, while Romanson, Ehwa Technologies Information and Bosung Power Technology lost 8.9 percent, 7.7 percent and 1.9 percent, respectively.

Lee Young-gon, an analyst with Hana Daetoo Securities, said the case raised uncertainty about companies related to Inter-Korean exchange. “In the short-term, it is expected to cause disruption in the business of those companies,” he said.


By Moon Gwang-lip Staff Reporter [joe@joongang.co.kr]


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