Stocks linked to election candidates fall amid chip-driven rally

Shares linked to South Korean election candidates fell sharply during the local election period, with Sampyo Cement and SJ Group dropping 30 percent and 49 percent respectively, according to Korea Exchange data Wednesday. The declines contrasted with previous election cycles as a KOSPI rally driven by Samsung Electronics and SK hynix shifted investor focus toward major technology stocks amid optimism over expanding AI data center investment. Stocks associated with opposition candidate Oh Se-hoon also weakened, with Chin Yang Industry, Chin Yang Poly and Chin Yang Chemical falling 18 percent and 26 percent.

Shares linked to political figures moved largely downward and saw weak trading activity during this local election period, in contrast to previous election cycles when such stocks experienced sharp volatility, according to Korea Exchange data Wednesday. Market analysts attributed the subdued performance to the recent KOSPI rally led by Samsung Electronics and SK hynix, as optimism over expanding artificial intelligence AI data center investment and an improving semiconductor outlook shifted investor focus toward major technology stocks. Sampyo Cement and SJ Group, both regarded as stocks linked to ruling Democratic Party of Korea Seoul mayoral candidate Chong Won-o, fell 30 percent and 49 percent, respectively, over the past month as of Tuesday. The two firms were associated with Chong, the former head of Seoul’s Seongdong District, based on their ties to Seongsu-dong in the district. Stocks associated with main opposition People Power Party candidate Oh Se-hoon were no exception to the broader weakness. Chin Yang Industry, Chin Yang Poly and Chin Yang Chemical fell 18 percent, 26 p