South Korea’s top five best-performing stocks last month were all robotics-related, highlighting growing investor enthusiasm for the sector despite broader market declines. The surge reflects increasing confidence in robotics as a key driver of future growth, even amid global economic uncertainty.
A mechanical engineering graduate who asked to remain anonymous has witnessed this trend firsthand. Last year, whenever friends inquired about which stocks to buy, he consistently recommended robotics stocks. Now, as those stocks rally, he has been receiving frequent thanks from acquaintances who followed his advice.
Reflecting this momentum, South Korean robotics stocks remained strong despite global financial markets being hit by President Donald Trump’s tariff policies. Investors are focusing on the robotics industry as an essential factor in improving productivity.
On Feb. 3, HigenR&M, a robotics-related stock, rose over 17% during trading, reaching a record high of 46,200 won ($31.63) since its listing. Rainbow Robotics, recently incorporated as a subsidiary of Samsung Electronics, also surpassed $205 per share, hitting an all-time high of around $214.50. Higen R&M closed at about $28.09, up 6.6%, while Rainbow Robotics ended at $211.76, a 3.3% increase. Despite the KOSPI and KOSDAQ indices falling by 2.5% and 3.4%, respectively, the buying spree in robotics stocks remained strong.
According to the Korea Exchange (KRX), HigenR&M had the highest growth rate among over 2,600 listed companies on the KOSPI and KOSDAQ markets last month, with a 197% increase. Following were Rainbow Robotics (112%), SP Systems (106%), Koh Young Technology (103%), and Korea MoveNex (96%). The top five gainers were all robotics-related stocks.
HigenR&M, which went public last June at an offering price of approximately $4.79, is a newcomer in the Korean market. It started in 1963 as LG Electronics’ motor division before becoming independent in 2008. The company is developing actuators, considered key components in robots.
Until the end of last year, its stock price hovered in the $6–$7 range. However, it hit the upper limit on Jan. 2 and 9, gaining momentum. A HigenR&M representative said, “As artificial intelligence (AI) technology advances, the robotics market is expanding, and actuators are a key part of robot hardware.” The representative also noted that the company’s other business segment, general-purpose motors, provides a stable cash flow, enabling continuous investment in robotics-related technology.
Rainbow Robotics, the second-best performing stock this year, gained market attention last month when it was incorporated into Samsung Electronics’ consolidated financial statements as a subsidiary. Foreign investors have actively bought into the company, making it the most purchased stock by foreign investors in the KOSDAQ market this year, with a net purchase of $77.1 million.
In comparison, Sungkwang Bend ($31.3 million) and Pharma Research ($29.4 million) ranked second and third in net foreign purchases, showing the overwhelmingly high level of global investor interest in the robotics industry.
Securities analysts view robotics stocks as a key theme for Trump’s potential second term, as the widespread adoption of AI across industries is expected to accelerate the sector’s growth.
In a recent report regarding Trump’s potential second term, Lee Sang-heon, an analyst at iM Securities, said, “Structural changes such as an aging population, rising labor costs, and reshoring due to global supply chain restructuring will accelerate the adoption of robotics.” He added, “Humanoid robots, which mimic human movements, have vast potential in tasks like transportation, organizing goods, handling hazardous materials, and rescue operations.”
In South Korea, major conglomerates such as Samsung Electronics, LG Electronics, and Hyundai Motor are also accelerating their entry into the robotics market, viewing it as a key platform for physically implementing AI technology.
However, as robotics stocks have surged recently, more experts are warning of potential overheating. HigenR&M, which has risen 486% from its IPO price since its June listing, was designated as an investment warning stock by the Korea Exchange on Feb. 3.
While the robotics sector is considered a future growth industry, some experts argue that current stock prices are difficult to justify. Rainbow Robotics, with a market capitalization nearing $4.1 billion, is now the fifth-largest company on the KOSDAQ market, yet it has never turned a profit since going public in 2021.
