Steel, Nuclear Shares Jump After Trump Unveils $200 Billion South Korean US Investment Plan
Summary
- President Donald Trump’s announcement of a $200 billion investment in the US sent steel shares such as Korea Steel and Koryo Steel Wire, along with nuclear-related stocks, sharply higher.
- As a US AI data center construction boom drives a 145.5% increase in steel exports to the US, expectations are rising that rebar makers such as Korea Steel will benefit in earnings.
- In connection with the Texas gas-fired power plant investment, Doosan Enerbility is being cited as a key beneficiary because it could supply major equipment and participate in EPC work.
Forecast Trend Report by Period
Korea Steel jumps 17%; Koryo Steel Wire rises 5%
Seoul says only Texas power plant investment is confirmed
Steelmakers and nuclear-related shares surged after President Donald Trump said South Korea’s planned $200 billion investment in the US would include nuclear power projects and the Alaska liquefied natural gas venture.
According to the Korea Exchange, steel stocks rallied broadly on Oct. 1. Korea Steel closed 16.82% higher at 9,100 won. Dongkuk Steel rose 4.55% and Koryo Steel Wire added 5.02%. Nuclear-related shares also gained. Wonil T&I hit its daily upper limit at 10,850 won, while Hanyang ENG climbed 9.24% and Seojeon Electric Machinery advanced 4.01%.
Trump’s announcement fueled the gains. At the White House on Sept. 30, he called it “one of the largest energy infrastructure investments in American history” and said the South Korean government planned to invest as much as $200 billion. The US side said $120 billion would be spent on eight nuclear reactors and more than $50 billion on the Alaska LNG project. South Korea’s Ministry of Trade, Industry and Energy pushed back, saying the only confirmed investment destination was a gas-fired power plant in Texas and that nothing had been decided on other projects or the size of any investment.
Rebar makers stand to benefit regardless of whether the broader investment plans are finalized. Separately, exports of rebar to the US have been rising amid a boom in artificial intelligence data center construction there. Korea Iron and Steel Association data showed South Korea’s steel exports to the US jumped 145.5% in August from a year earlier. Korea Steel, one of the day’s biggest gainers, has a high proportion of sales from rebar, meaning stronger demand can flow quickly into earnings.
Doosan Enerbility is the main beneficiary of the confirmed Texas project. Lee Min-jae, an analyst at NH Investment & Securities, said Doosan Enerbility could supply key equipment, while South Korean builders could participate in engineering, procurement and construction, or EPC. Barron’s also described Doosan Enerbility as “a key supplier of reactor pressure vessels and other major components.”
Park Ju-yeon, Hankyung.com reporter grumpy_cat@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.