Construction Stocks Soar Seoul Focus Opportunity Now

● Housing Jackpot-Trillion Won!

Construction Stock Rally and Construction Market Recovery… Investment Points Summarized at a Glance

From the reasons for the recent rally in construction stocks to the improvement in operating profit guidance and the outlook for pre-sale and occupancy volumes, they are causing a major ripple effect across the economy.
We carefully summarize the key points, such as the background of construction companies gaining expectations for margin improvement with aggressive operating guidance announcements, the breakthrough of the lowest point in pre-sale volume, and the concentration of the Seoul housing market.
Based on specific data and on-site situations, we cover the overall flow of the construction market, rising construction costs and improvement in the mix of construction sites, and the future strategies of construction stocks that investors should pay attention to.

[1] Analysis of the Current Status of the Construction Market and Housing Market

Recently, construction stocks have shown a rally as operating profit guidance has improved.
Major construction companies such as Hyundai Construction and DNC have made us expect an improvement in operating profit in 2025 through aggressive guidance.
Unlike the rise in Seoul apartment prices, the sluggishness in the provinces and non-housing sectors continues.
Looking at the phenomenon of Seoul rising alone in the real estate market, the housing market has a significant impact on construction stocks.

[2] Pre-Sale Volume and Occupancy Forecast

Pre-sale volume hit its lowest point in 2023 and continued to be sluggish in 2024.
It is expected that it will be difficult to recover the pre-sale volume and occupancy volume, especially the construction of apartments and non-housing in the provinces is in a difficult situation.
However, there is also an analysis that a recovery can be sought after a sharp decline in occupancy volume from 2027, which can act as a long-term investment point.

[3] Rising Construction Costs and Prospects for Improvement in Construction Companies’ Operating Profits

Since 2021, the rate of increase in construction costs has risen sharply, increasing by 30% by 2023.
As a result, past construction sites experienced an increase in cost burden, but recently, as the cost increase effect has accumulated, expectations for mix improvement are increasing.
Since Hyundai Construction released a big pass in the fourth quarter, there is an analysis that the possibility of margin improvement for construction companies will appear after 2025.
In particular, the performance of major construction companies such as DLNC, Hyunsan, and Hyundai Construction is gradually stabilizing.

[4] Investment Points and Analysis of Construction Companies to Watch

The construction industry is highly linked to interest rate conditions, so a drop in interest rates reduces the burden on project developers, which is likely to naturally lead to an improvement in the operating profit of construction stocks.
Stocks of Hyundai Construction, DNC, as well as DLNC and Hyunsan are evaluated as being undervalued.
In particular, with the growth of the housing market and the improvement of sales topline through large-scale projects such as Seoul One I-Park, attention should be paid to the rebound in the performance of construction stocks.
In addition, securing future growth engines, such as DLNC’s investment in a US SMR company, is also acting positively.

[5] Correlation between Interest Rates and the Construction Market

Since the construction sector is clearly affected by interest rates, a drop in the base interest rate plays a significant role in investment demand and performance improvement.
As expectations for interest rate cuts have recently spread, the stock prices of construction stocks are likely to gradually rebound from undervaluation.
Along with interest rates, the construction market, the real estate market, and the improvement in the operating margins of construction companies are expected to rise together.

Summary

Recently, construction stocks led the stock price rally with improved operating profit guidance and aggressive announcements.
The construction market is moving in a complex manner, including rising Seoul housing prices, sluggish provincial economy, and prospects for recovery of pre-sale and occupancy volumes.
Although construction costs have risen and the cost burden has accumulated, the operating profits of construction companies are expected to improve after 2025, thanks to mix improvement and falling interest rates.
Major construction stocks such as DLNC, Hyunsan, and Hyundai Construction are drawing attention as investment points, and key economic keywords such as construction, real estate, investment, and the construction market are highlighted together.

*YouTube Source: [이효석아카데미]

– 서울원 아이파크 하나로만 1조를 번다는데..?ㅣ배세호 연구원 [풀영상]

● Korea’s Golden Opportunity

Uncertainties in Trump’s Policies and the Crossroads of Our Economic and Security Strategy

1. Trump’s Capricious Remarks and Economic Approach

Trump’s remarks, constantly changing and evading responsibility.
Although he tries to approach it with economic logic rather than politics, his policies ultimately lead to a loss of trust.
Although tariff increases may increase short-term tax revenue, concerns about inflation and the burden on the public cannot be avoided.
From an economist’s point of view, he insists that the crisis can be overcome, but the political reality is the opposite.

2. U.S. Economic Crisis: The Dilemma of Fiscal and Trade Deficits and High Interest Rates

The United States is burdened by twin deficits, namely fiscal and trade deficits.
Significant national debt (over $36.1 trillion) and high interest rates (approximately 4.5%) are negatively impacting the national economy.
Warnings are even being issued about the possibility of default upon reaching the national debt ceiling.
Amid the economic crisis, Trump aims to secure tax revenue and reshore manufacturing through tariff increases.

3. Short-Term Effects and Long-Term Problems of Tariff Policy

Tariff increases drive up import prices, leading to short-term price increases and consumer contraction.
Despite expectations of increased tax revenue, manufacturing reshoring is difficult to induce domestically due to cost structure.
The tariff war entails the possibility of collapsing the international supply chain and increasing uncertainty in the overall economy.
As a result, even short-term attempts at a V-shaped economic rebound carry the risk of a long-term recession.

4. The Complexity of Domestic Politics and International Relations in the United States

Tariff policy leads to domestic political problems, acting as factors of voter dissatisfaction and regime instability.
Trump tries to solve problems with economic calculations alone, but the power of political logic and public opinion cannot be ignored.
He mentions that he has maintained close relationships with major trading partners such as Canada and Mexico without excluding them.
As a result, internal political and economic conflicts in the United States can lead to instability in the international order.

5. The ROK-U.S. Alliance and South Korea’s Strategic Value

While Trump seeks to reduce tariffs and security costs under the goal of containing China, South Korea’s advanced manufacturing, semiconductor, and battery competitiveness remains essential.
South Korea is reaching out as an important partner that the United States needs when trying to reshore manufacturing.
The ROK-U.S. alliance is a mutually beneficial structure beyond a simple alliance, and it is a contractual relationship focused on national interests.
If the alliance is broken, our national interests will also suffer great losses, so South Korea needs independent choices and responses in its diplomatic and security strategy.

6. Future Prospects Amid Global Security and U.S.-China Conflict

Trump’s policies ultimately encourage the United States to reduce security costs and focus on containing China.
In a situation where the global security crisis is intensifying, the U.S.’s reshoring attempts and alliance utilization entail short-term shocks and long-term volatility.
The U.S. economic crisis and uncertainty can also affect the status of the key currency dollar.
As a result, the role of economic and security powers such as South Korea is expected to become more important in the reorganization of the global supply chain and security order.

Conclusion: Crisis as Opportunity, Crossroads of Strategic Choice

Trump’s economic logic and tariff policy are accompanied by long-term risks along with short-term effects.
Amid internal political and economic instability in the United States and the global security crisis, the ROK-U.S. alliance and South Korea’s strategic value are further highlighted.
The task given to us is to prioritize national interests and utilize the alliance while maintaining autonomy.
Even in times of economic crisis and global uncertainty, strategic choices that turn crisis into opportunity are needed.

< Summary >
U.S. President Trump's capricious remarks and tariff policies reflect the serious crisis of the U.S. economy, such as fiscal and trade deficits, despite expectations of short-term tax revenue increases and manufacturing reshoring.
Tariff increases cause price increases and consumer contraction, and may lead to political instability and public opinion fluctuations.
Amid Trump's economic logic and political contradictions, the ROK-U.S. alliance and South Korea's advanced manufacturing, semiconductor, and battery competitiveness play a key role in the U.S.'s China containment strategy.
As political and economic instability within the United States and the global security crisis intensify, South Korea must turn the crisis into an opportunity through strategic diplomatic and security choices to protect its national interests.
The content is developed around the main economic-related SEO keywords of Trump, tariffs, ROK-U.S. alliance, economic crisis, and global security.

*YouTube Source: [머니인사이드]

– “지금부터 한국이 갑이다” 트럼프가 판 흔들 때 기회인 이유 (조한범 박사 1부)