Korean food companies relying on soybean imports have gained upside momentum on the stock market on expectations for greater supply for local market due to the renewed conflict between the United States and China.

The country’s oldest soybean sauce maker Sempio Foods shares closed Friday at 46,000 won ($36.98) in Seoul, gaining 4.78 percent from the previous session. The shares broke the 52-week high threshold on May 18 after gaining 76 percent from three weeks ago.

China is the world’s largest consumer of soybean that imports an average $14 billion worth from the U.S. every year to feed pigs. If it reduces imports from the U.S. against renewed tariff levies, there will be a lot more to go around to the rest of the world.

Sempio Foods reported an operating profit of 10.2 billion won for the first three months, up 86.1 percent from a year ago.

Another Korean food producer Pulmuone also saw a surge in its stock price recently. Its shares finished 2.46 percent higher at 14,600 won on Friday after hitting a 52-week high of 15,650 won on May 18. The company posted a consolidated operating profit of 4.5 billion won for the quarter ended March, more than tripling from the previous year.

“Household demand for food products grew fast amid social distancing and people now are showing more interest in vegetable foods, driving the earnings growth of Pulmuone,” said Jo Mi-jin, an analyst at NH Investment & Securities.

Shares of Singsong Holdings Co., the holding entity of a soy bean sauce and food maker Singsong Food, also jumped 25 percent to 4,155 won on Friday against five weeks ago.

By Kim Jung-beom and Lee Ha-yeon

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