Even the President says "the stock market correction may continue"… only theme stocks 'stir' in a sideways market

Superconductor-themed stocks are stirring in the domestic stock market trapped in a trading range. As market momentum has waned and the former leading stocks that rose on earnings and orders have lost strength, it appears that investment flows are concentrating in science and technology themes whose substance is difficult to prove.

Seonam, Mobis and other superconductor stocks 'soar'

On the 3rd during trading on the KOSDAQ market, Seonam is trading at 3385 won, up 11.72%. The company is developing high-temperature superconductors for power transmission lines and is considered a superconductor-related stock. Even though there has been no particular news about the company's own development process yet, its stock rose about 25% over the past week.

Other companies considered superconductor-themed stocks have also seen recent stock price increases. Mobis's stock rose about 26% over the past week. The company was grouped as a superconductor-themed stock on the grounds that it once won an order to design a system related to superconducting coils. Other companies known as superconductor-themed stocks, such as Deokseong (2.2%) and Amotech (2.4%), also saw their stock prices rise.

A superconductor is a material whose resistance completely disappears under certain temperature and pressure conditions. It has not yet been developed for commercialization. In 2023, the world was excited by claims that Korean researchers had discovered the world's first "room-temperature, ambient-pressure superconductor" LK-99, but scientific verification concluded that LK-99 was not a superconductor but an insulator with high resistance.

Because 'theme' companies are not supported by earnings, individual stocks often experience temporary sharp ups and downs. A representative of an asset management firm said, "Superconductor-themed stocks appear to have surged without any particular positive developments," and explained, "Such theme stocks tend to suddenly rise in a sideways market that has lost upward momentum."

President Lee Jae-myung: "The stock market correction phase may continue… earnings need to support it"

President Lee Jae-myung, who had pledged 'KOSPI 5000' with the launch of the new administration, also seems to be forecasting a period of sideways movement in the domestic stock market for a while.

According to sources inside and outside political circles, President Lee said at the 40th Cabinet meeting the previous day, "The stock market situation is a phase of correction after a rise," and "The stock market correction phase may continue a bit more." He was also reported to have added, "A second rise for the (domestic stock market) seems to require earnings."

At the Cabinet meeting that day, President Lee approved the second amendment to the Commercial Act and the amendments to Articles 2 and 3 of the Trade Union Act (the Yellow Envelope Law). The Yellow Envelope Law focuses on expanding the scope of employers and subjects of labor disputes and limiting companies' claims for damages against striking workers. The Yellow Envelope Law will come into effect six months after the bill is promulgated. Some have raised concerns that these laws could hamper corporate management.

Reporter Seon Han-gyeol always@hankyung.com