South Korean construction stocks are experiencing a surge following news of a peace agreement between the United States and Iran. The easing of geopolitical risks in the Middle East has raised expectations for expanded infrastructure and plant reconstruction projects, which is reflected in stock prices.
As of 9:53 a.m. on June 15, Samsung E&A shares rose 10.50% to 52,600 won, an increase of 5,000 won from the previous trading day. DL E&C also showed strong performance, climbing 6.22% to 78,500 won.
Other major construction stocks, including HL D&I (up 5.14%), Hanmi Global (up 5.48%), Daewoo Engineering & Construction (up 7.32%), and Kumho Industrial (up 5.19%), all saw increases of over 5%, attracting significant investor interest.
The rise in construction stocks is attributed to the announcement of the peace agreement between the U.S. and Iran. President Donald Trump stated on June 14 via social media platform Truth Social that the agreement with Iran has been finalized.
Iran has also expressed its commitment to peace. Kazem Gharibabadi, Deputy Foreign Minister of Iran, mentioned the possibility of an immediate and permanent ceasefire across all fronts, including Lebanon, indicating a potential easing of tensions in the region.
Market analysts believe that the Middle East is a key overseas market for South Korean construction firms, and the resolution of geopolitical uncertainties is likely to enhance expectations for new contracts. There are also forecasts that large-scale infrastructure and plant orders could benefit domestic construction companies during the post-conflict reconstruction phase.
Meanwhile, the official signing ceremony for the U.S.-Iran Memorandum of Understanding (MOU) is scheduled to take place on June 19 in Switzerland.
* This article has been translated by AI.
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