The widening consumer boycott campaign against Japanese brands following its retaliatory embargo action has boosted stocks of Korean names that can replace Japanese rivals.
Shares of Shinsung Tongsang closed Friday 6.22 percent higher at 1,280 won ($1.09) after hitting a 52-week high of 1,525 won in the morning trade. Monami stock also recorded a new 52-week high in the midday trading and ended the day up 6.02 percent at 3,525 won in the main Kospi market.
Shinsung Tongsang manufactures and distributes various fashion apparels, including casual label TopTen10 which competes in the same market category with Japanese apparel label Uniqlo in Korea. Monami is stationary producer, one of the major players in the Korean stationary market where Japanese brands enjoy large shares.
In the secondary Kosdaq market, shares of local rice cooker maker PN Poongnyun gained 1.35 percent to 2,635 won while Cuchen finished 0.83 percent higher at 7,250 won. The shares of Korea’s major bicycle maker Samchully Bicycle rose 4.07 percent and those of rivaling Alton Sports 0.4 percent.
In contrast, travel related stocks like Korean Air Lines and Asiana Airlines are experiencing sharp fluctuation as passengers to and from the closest Asian neighbors make up the bulk of short-haul international flight.
Since Japanese government early this month announced it was restricting exports of chip- and display-making materials to Korea in apparent retaliation for Korean court’s ruling on wartime force labor, Korean consumers have started nationwide boycott of Japanese brands, ranging from auto brands like Toyota and Honda to apparel labels like Descente and Uniqlo. Some even call for travel bands and tariff retaliations.
The boycott campaign on Japanese brands is quickly spreading in Korea, especially through online communities. On Wednesday, a post appeared on one of the country’s popular online communities, encouraging the boycott with a list of Japanese brands attached. It instantly moved to the top as the most-liked post.
By Yoo Joon-ho and Cho Jeehyun
[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]