Uncertainty and Prospects in the Korean Nuclear ETF Market
There has been mounting controversy surrounding nuclear energy-related ETFs in the Korean stock market and industry. Mirae Asset Management's 'TIGER Korea Nuclear ETF' experienced a significant decline due to policy inconsistency from the government and controversy over an unfair agreement with Westinghouse. This situation has led to a decrease in investor confidence in domestic firms investing in nuclear energy, particularly Doosan Enerbility and Hyundai Engineering & Construction.
The current government policy aimed at expanding renewable energy is negatively influencing the outlook for the nuclear sector, raising concerns about nuclear exports and industrial competitiveness. However, despite these uncertainties, nuclear power remains a focus as a stable, carbon-free energy source amid increasing power demand in the AI era. In this context, the new nuclear-related ETFs launched by Mirae Asset and Shinhan Asset Management have garnered market attention.
Due to the Korean nuclear unfair contract controversy, a significant drop has occurred in domestic major nuclear stocks, impacting newly listed ETFs as well. The 'TIGER Korea Nuclear ETF' and 'SOL Korea Nuclear SMR ETF' decreased by 8.2% and 7.6% respectively, reflecting market anxiety. Key stocks such as Doosan Enerbility, Korea Power Technology, and Hyundai Engineering & Construction fell by over 8%. While some securities firms remain optimistic about the expansion potential of the nuclear value chain, others warn about the uncertainty surrounding the loss of technological sovereignty.
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