[Edaily Reporter Shin Ha-yeon ] Nuclear power-related stocks are surging across the board in early trading amid growing expectations that plans to build a U.S. nuclear power plant may be included in South Korea’s investment projects in the United States.

According to MP Doctor on the 8th, as of 9:11 a.m., SEOJEON ELECTRIC MACHINERY Co.,Ltd.(189860)is trading at 5,750 won, up 29.80% from the previous trading day, while Orbitech Co., Ltd.(046120)is trading at 6,050 won, up 29.83%, both hitting their daily price limits.

In addition, ENERTORK LTD.(019990)is trading at 5,710 won, up 17.37%, and HanshinMachinery(011700)is trading at 2,770 won, up 16.63%. KEPCO Engineering & Construction(052690)is also up 16.03% at 141,900 won, while Woori Technology, Incorporation(032820)is trading at 12,420 won, up 13.74%. WOOJIN INC(105840) Nuclear power-related stocks are also rising in tandem, including S&W Corporation(103230)(10.53%), (8.44%), Korea Electric Power Industrial Development(130660)(8.41%), and DOOSAN ENERBILITY(034020)(5.35%).

This is interpreted as growing expectations that domestic nuclear power companies will secure more contracts, following speculation that the government is pursuing a plan to build eight large nuclear power plants in the U.S. as part of a $200 billion (approximately 269 trillion won) investment project in the United States.

Yesterday, the Ministry of Trade, Industry and Energy held a closed-door party-government consultation with Democratic Party lawmakers—including members of the National Assembly’s Committee on Trade, Industry, Energy, SMEs, and Startups—and reported on the progress of the U.S. investment initiative. The government plans to officially announce the Korea-U.S. investment agreement, which includes the contract details for the Texas thermal power plant project—the first in the U.S. investment series—around the 18th, following a formal report to the National Assembly.

Combined with expectations that plans for new nuclear power plant construction may be included in the upcoming 12th Basic Plan for Electricity Supply and Demand, as well as prospects for expanded nuclear power exports overseas, buying momentum is spreading across the entire nuclear power sector.

However, some analysts in the securities industry have cautioned that it is important to note that no specific nuclear power projects have been finalized yet. Moon Kyung-won, an analyst at Meritz Securities, noted in a report released today, “Most media reports are characterizing this announcement as a ‘framework,’ meaning it is merely at the stage of ‘exploring the possibility of moving forward.’” He added, “Obstacles remain before an actual contract is signed, including the race for reactor design dominance (AP1000 vs. APR1400), the risk-sharing structure, and a feasibility study.” He continued, “Even the framework alone is positive for investment sentiment across the entire nuclear power sector, including DOOSAN ENERBILITY and HyundaiEngineering&Construction,” and assessed, “In particular, KEPCO Engineering & Construction deserves attention if the APR1400 is included.”