Japan's Quake May Boost Korean Industry

Much as we resist thinking about them in these terms, natural disasters create winners as well as losers. Before Mar. 11, for example, Korean steelmakers were struggling. Shares of Posco (PKX), the world's third-largest steel producer, tumbled 21 percent in 2010 as raw-material prices soared. The outlook for 2011—with Chinese growth weakening—was no better. Korea was the also-ran of East Asian steel, posting a 10 percent market share, vs. Japan's 30 percent.

Now, with the prospect of less competition from its hobbled neighbor and increased demand when the Japanese start rebuilding, business looks better for the Koreans. Posco's share price jumped 10 percent in ten days of trading after the earthquake; Hyundai Steel, Korea's No. 2 producer after Posco, was up 11 percent.