"Back Pain Stocks: Han Dong-hoon Triumphs Over Lee Jae-myung, Kim Moon-soo, and Kim Dong-yeon"

# Political Theme Stocks See Significant Drop Following Supreme Court Ruling and Market Volatility High-profile political theme stocks associated with figures like Lee Jae-myung, Kim Moon-soo, and Kim Dong-yeon witnessed substantial declines amid market turbulence. This follows a South Korean Supreme Court decision regarding Lee’s alleged electoral law violations. Financial experts and authorities are advising against speculative investments in politically-driven stocks. ## Marked Declines in Political Theme Stocks On October 2, the Korea Exchange reported that stocks tied to Democratic Party candidate Lee Jae-myung were among the most affected. Shares of Orient Precision Industries closed at KRW 9,860, falling by 15.36% or KRW 1,790. Orient Bio also dropped significantly, closing at KRW 1,377, a 16.29% decrease. Stocks related to Lee Jae-myung, dubbed "Lee Jae-myung theme stocks" due to his past affiliation with Orient Watch, also suffered. Lee had initiated his 2017 presidential campaign at the Orient Watch factory. Stocks such as D-Zenith (-10.22%), A-Tech Solution (-10.94%), A-Tech Mobility (-7.65%), Eastar Company (-12.14%), and Ilsung Construction (-12.09%) closed with substantial losses. Similarly, stocks linked to political rivals Kim Moon-soo from the People Power Party and Gyeonggi Governor Kim Dong-yeon also saw steep declines. PyeongHwa Holdings, a “Kim Moon-soo theme stock” due to their connection with the candidate, fell by 18% to KRW 4,510. Dae Young Packaging and Opticis, associated with Kim, dropped 13.01% and 3.33%, respectively. PyeongHwa Holdings initially rose to KRW 6,550 in early trading but saw a sharp decline by the session’s end. PNPoongnyun, a “Kim Dong-yeon theme stock” linked to auditor Choi Sang-hoon, decreased by 3.74%, closing at KRW 4,500. Despite a morning rise to KRW 5,430, it followed the overall downward trend. ## Upsurge in Han Dong-hoon Theme Stocks Contrarily, stocks connected to Justice Minister Han Dong-hoon showed gains amidst widespread declines. TA Yang Metal (+2.00%), Daesang Holdings Preferred (+2.84%), and DTNCRO (+13.80%) rose, defying the day's bearish sentiment. ## Investor Caution Advised The volatility in political theme stocks disconnected from corporate fundamentals has led financial experts to issue cautionary advice. “Political theme stocks are highly challenging to assess using standard criteria like capital inflows or robust corporate finances, severely limiting their investment stability,” said a senior analyst at a major securities firm. “In a slowing economy, speculative short-term investments often surge, particularly in political stocks. These are neither advisable nor safe for investment,” the analyst added. South Korea’s Financial Supervisory Service (FSS) has intensified efforts to crack down on speculative trading in political theme stocks. They plan to expand their special investigative task force created post-2017 impeachment proceedings and extend the reporting period for suspected misconduct. The FSS stressed that political theme stocks exhibit extreme volatility, making them highly unpredictable. “Following the 19th presidential election post-impeachment, these stocks showed frequent sharp fluctuations before returning to previous levels around election day,” the regulator noted. They warned that political theme stocks often lack intrinsic value tied to corporate performance and rely instead on perceived personal connections, which can be misleading. “Investors should be vigilant as speculative narratives based on unverifiable information can distort investment decisions. Extreme caution is warranted,” the FSS concluded. Investors are advised to exercise caution and focus on fundamentals when dealing with theme-stock investments amidst ongoing market uncertainties.