A view of DC Network's headquarters in Colorado, USA.  (provided by Samsung Electronics)

尹 Government 5G infrastructure expansion and contract with Samsung Electronics in the US… Telecommunication equipment stocks ‘surge’ all at once

A view of DC Network’s headquarters in Colorado, USA. (provided by Samsung Electronics)

Telecommunication equipment-related stocks have been strong until the end of the day. It is believed that the 5G and 6G-related policy goals of the Presidential Takeover Committee by Yoon Seok-yeol and Samsung Electronics’ 1 trillion won worth of 5G-related contracts acted as good news.

At 2:47 pm on May 9, THQ, a telecommunication equipment company, is trading at 4985 won, up 29.99% from the previous trading day. Iru, an application software developer known for its cooperative relationship with Samsung Electronics, has also soared to the upper limit. Telecommunication equipment-related companies such as CS, FR Tech, and Wireble are also showing strength by 28.73%, 20.6%, and 21.15%, respectively.

The strong trend in telecommunication equipment stocks is attributed to the policy goal of the Presidential Takeover Committee to upgrade 5G and 6G network infrastructure for digital innovation and the 5G-related contract worth 1 trillion won signed by Samsung Electronics.

On the 3rd, the transition committee selected and announced 110 national tasks containing the vision and principles of the next government. The transition committee announced that it will upgrade the 5G and 6G network infrastructure and secure network stability and cyber security responsiveness in order to ‘build the world’s best network and accelerate digital innovation’. He expressed his ambition to secure leadership in the future network by developing 48 core technologies to preempt 6G technology standards by 2026.

He also promised to open a true 5G era by completing a nationwide 5G network and spreading telecommunication services in rural areas across the country by 2024. Next-generation technology innovation such as 6G and satellite communication will also strengthen the industrial base, such as nurturing companies and nurturing human resources. He announced that he will operate a digital problem-solving center from 2023 to enhance digital competencies for the entire nation and increase digital accessibility by installing high-speed Internet networks in rural areas and public Wi-Fi by 2025.

In addition, news of Samsung Electronics’ US contract is also supporting the stock price rise. Samsung Electronics was selected as a large-scale 5G communication equipment supplier for DC Network, the fourth US mobile operator. Samsung Electronics announced on May 3 that it has decided to supply communication equipment such as wireless devices including 5G virtualized base stations and multiple input/output base stations for DC Network’s nationwide 5G network.

This is the second largest contract for 5G telecommunication equipment in the United States signed by Samsung Electronics, and the contract amount is said to be more than 1 trillion won. From the 4th, the day after this news was announced, related stocks have already been doing well every day. In the past, FRtech, which started the national disaster safety net communication pilot project in partnership with Samsung Electronics, has continued to rise after hitting the upper limit on May 4th, and THQ is also trading at the upper limit for two consecutive days.

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