Local companies doing business in North Korea, including those operating
factories in the Kaesong Industrial Complex, had a dismal day on the stock
market after Pyongyang announced late Thursday a plan to seize some
property at the Mount Kumgang resort and expel all South Korean
personnel there.
Hyundai Group subsidiaries that have been at the forefront of inter-Korea
economic cooperation projects including the Kumgang tours were
hammered down by renewed concern about escalating inter-Korean
tensions.
The stock of Romanson, a local watchmaker operating a factory in the
Kaesong complex, declined 1.67 percent to close at 2,650 won ($2.37).
Samchuly Bicycle, which also has a factory in the Kaesong complex,
dropped 1.07 percent to close at 13,900 won. The Kospi overall slid 0.54
percent.
JY Solutec, an electronics gadget maker and another tenant of the Kaesong
complex, lost 4.85 percent. Good People, a local clothing maker, also
dropped 2.83 percent to 1,890 won.
The future is murkier than ever for the Kaesong complex, where North
Koreans work at production plants built by South Korean companies lured
by lower labor costs.
Ehwa Technologies Information, which produces power cables provided to
the North, dropped 8.24 percent to end at 1,280 won, and Kwang Myung
Electric Engineering, which also produces power distributing boards sold in
the North, fell 6.71 percent to 2,015 won. Taihan Electric Wire dropped
1.44 percent to 13,700 won.
Hyundai Merchant Marine, the Hyundai Group subsidiary that owns a
controlling stake in Hyundai Asan, the operator of the South Korean
tourism programs at Mount Kumgang, lost 1.2 percent, while its sister
company Hyundai Elevator shed 1.5 percent.
Emerson Pacific, which operates golf courses and resort facilities in the
Mount Kumgang area, also slid 0.74 percent.
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