On the morning of the 28th, as both the KOSPI and KOSDAQ markets plunged and a sell-side circuit breaker was triggered, selling pressure poured into renewable energy-related stocks across the board. Rather than a decline limited to specific sectors such as solar, wind, energy storage systems (ESS), and power grids, the entire industry fell simultaneously, with the market's risk-aversion sentiment putting pressure on stock prices.

Declines Widen Across Major Stocks As of the morning session on that day, SK Enmove, which posted the largest decline among related stocks, traded at 47,800 won, down 9,300 won from the previous trading day. The drop amounted to 16.29%. After opening at 54,900 won, it fell to as low as 47,000 won during the session, with a trading volume of 3,931,844 shares.

HD Hyundai Energy Solutions, a solar module company, fell 14.61% to 115,100 won, down 19,700 won. Volatility increased as the price dropped from an intraday high of 132,600 won to a low of 115,100 won. OCI Holdings traded at 185,900 won, down 20,100 won (9.76% decline), while Hanwha Solutions traded at 24,550 won, down 1,650 won (6.30% decline), with a trading volume of 1,029,161 shares.

Power generation companies also showed weakness. Daemyung Energy, which operates wind and solar power generation businesses, fell 8.76% to 12,390 won, down 1,190 won, while Geumyang Green Power declined 6.27% to 7,030 won, down 470 won (falling to as low as 6,950 won during the session).

Small- and Mid-Cap and Power Equipment Stocks Fall in Tandem Small- and mid-cap stocks related to solar facility equipment also showed weakness. SDN traded at 636 won, down 8.36%, and Shinsung E&G traded at 14,030 won, down 8.24%. S Energy fell 4.97% to 708 won, and Paru recorded 540 won, down 1.10%.

Gridwiz, a company in the power demand management and distributed energy business, fell 8.88% to 12,110 won, down 1,180 won. LS ELECTRIC, a major power equipment stock, declined 10.70% to 178,600 won, down 21,400 won, and Korea Electric Power Corporation (KEPCO) also traded at 34,050 won, down 5.94%.

Deteriorating Market Supply and Demand Is the Core Cause The weakness in renewable energy stocks on this day is interpreted as attributable to the rapid deterioration in supply and demand across the broader domestic stock market, rather than any single negative factor for individual companies. As the index plunged, investor sentiment toward growth stocks and small- and mid-cap stocks shrank rapidly, leading to simultaneous profit-taking and stop-loss selling in energy transition-related stocks that had recently posted large gains.

Medium- to Long-Term Outlook and Checkpoints The renewable energy industry is equipped with medium- to long-term growth drivers, including increasing power demand, data center expansion, carbon neutrality policies, investment in solar and wind power generation facilities, and power grid expansion. However, the profitability of power generation projects can vary depending on interest rates, raw material prices, government support policies, and power purchase agreement (PPA) conditions, making it necessary to analyze the industry's overall growth expectations separately from individual companies' performance.

In the short term, whether the KOSPI and KOSDAQ can narrow their declines, the intensity of selling by foreign and institutional investors, and changes in trading volumes of related stocks are key variables. Going forward, it will be necessary to monitor whether solar module prices, U.S. business profitability, wind power project orders, and expanded investment in power grids and ESS translate into actual revenue and profits.

[This article was written with AI assistance. This article is information for investment reference purposes and does not recommend the purchase or sale of any specific stock. Intraday stock prices and trading volumes are subject to continuous fluctuation.]