Tongyang Rises by Daily Limit on Coal Plant Report: Seoul Mover

Tongyang Inc. (001520), a housing and construction service provider, rose by the daily limit in Seoul after a newspaper reported its parent Tongyang Group won approval to enter the coal power plant business.

Tongyang gained 180 won, or 15 percent, to 1,390 won as of 12:48 p.m. on the Korea Exchange, the biggest intraday rise since Jan. 9. Subsidiary Tongyang Cement & Energy Corp. (038500) also rose 15 percent to 4,230 won, headed for its highest close since May 21, 2009. The Kospi index increased 0.1 percent.

Six companies, including Tongyang Group and Samsung C&T Corp., have won rights to build coal-fired power plants in South Korea, the Korea Economic Daily reported today, citing unidentified government and industry officials.

“We made an application last year” to build a new coal power plant at an idle cement mining site in Samcheok, southeast of Seoul, Bae Jin Won, a spokesman at Seoul-based Tongyang, said by phone today. “We haven’t yet received any notice on the results.”

The government will announce a list of newly-licensed power generation operators early February, the Ministry of Knowledge Economy said in an e-mailed statement in response to newspaper reports.

To contact the reporter on this story: Sangim Han in Seoul at sihan@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

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