Victek Leads Defense Shares Up on N. Korea Threat: Seoul Mover
Victek Co. (065450) led South Korean defense-related shares higher after North Korea’s military said it will soon take “special action” against South Korean President Lee Myung Bak’s government.
Victek, a maker of electronic warfare equipment, gained by the daily limit of 15 percent to close at 3,045 won. Speco Co. (013810) jumped 13 percent to 3,205 won. Huneed Technologies (005870), a military communications equipment maker, rose 5.9 percent to 3,950 won. The benchmark Kospi (KOSPI) index fell 0.1 percent.
A North Korean special action squad will turn Lee and his government into ashes within three to four minutes using “unprecedented peculiar means and methods of our own style,” the military said today in a statement carried by the official Korean Central News Agency, without giving further details.
While the totalitarian country often issues threats of war, the North has boosted its rhetoric against Lee this month while marking the centennial of state founder Kim Il Sung. A rocket launched on April 13 as a centerpiece of the celebrations disintegrated after liftoff, prompting speculation the regime would detonate a nuclear weapon to regain face.
South Korea’s military didn’t raise its alert levels as no special North Korean troop movements were sighted today, said a Defense Ministry official who declined to be named, citing military policy. Lee’s office didn’t have any comment, spokeswoman Lee Mi Yon said.
To contact the reporter on this story: Sangwon Yoon in Seoul at email@example.com