Railway-related stocks surge on national railroad network plan

[THE INVESTOR] Railway-related stocks surged on June 20 as the Korean government confirmed its national railroad network plan .

Shares in Hyundai Rotem, the country’s train manufacturer, rose 6.69 percent to close at 18,350 won (US$15.79). The company’s first vendor Daeho AL closed at 2,750 won, up a whooping 21.41 percent.

Stocks listed on the secondary market KOSDAQ including Woowon Development and DAEATI hit the upper price limit. 

On June 17, the Ministry of Land, Infrastructure and Transport confirmed the third national railroad development plan which will cost some 70 trillion won, aiming to upgrade existing railway systems that would establish a network for high speed and semi-high speed trains shortening the overall travel time within Korea.

According to the plan, when the network is fully established by 2025, 85% of the entire Korean population will benefit from high or semi-high speed trains.

By Park Han-na (hnpark@heraldcorp.com)