Korean Power Equipment Stocks Fall 44.8% from Peak, Recovery Signals Emerging in Distribution Market

Korean power equipment stocks fell sharply on July 24, with Hyosung Heavy Industries dropping 44.8% from its May high to 2.681 million won, HD Hyundai Electrics declining 44% to 810,000 won, and LS Electric falling 39.7% to 202,000 won. Analysts attribute the correction to fund rotation toward semiconductor giants following single-stock leveraged ETF launches, rather than industry downturn signals.

LS Electric's second-quarter results, released on July 25, signaled ongoing strength in power infrastructure demand. The company posted revenue of 1.577 trillion won, up 32.2% year-over-year, with operating profit surging 64.3% to 178.5 billion won. New orders reached 2.0835 trillion won, jumping 243% from the prior year and marking the highest quarterly total. The company raised its full-year order guidance from 4 trillion won to 6-6.5 trillion won, driven by demand for power distribution equipment serving AI data centers. Growth is expanding beyond high-voltage transmission transformers into medium and low-voltage distribution products.