[Special Stock] Hancom, Unique Subsidiary in Respiratory and Protective Gear... US Defense Production Act Mobilization Battle

[Asia Economy Reporter Hyungsoo Park] Hancom is showing strong performance. Expectations for its subsidiary, safety equipment company Hancom Lifecare, appear to be driving the stock price increase.

As of 9:51 AM on the 19th, Hancom is trading at 7,380 KRW, up 5.43% from the previous day.

On the 18th (local time), U.S. President Donald Trump announced that he would invoke the Defense Production Act (DPA) in relation to the novel coronavirus infection (COVID-19). This is to increase the production of health masks and other necessary items for COVID-19 response.

According to major foreign media, President Trump appeared at a COVID-19 response task force (TF) press conference held at the White House that day. The U.S. will invoke the Defense Production Act (DPA) to increase the supply of COVID-19 materials. The DPA grants the president broad authority to promote and expand the production of key goods to support defense, energy, space, and homeland security, and was created in 1950 to support the Korean War.

Governments worldwide are making every effort to secure ventilators necessary for treating COVID-19 patients. In Italy, a large number of deaths occurred due to a shortage of ventilators during the treatment of confirmed cases. As countries around the world are securing ventilators by any means to treat their citizens, the value of related companies has surged.

Hancom Lifecare, a subsidiary of Hancom, focuses on personal protective equipment (PPE) such as protective suits, respirators, and masks. Hancom emphasizes that in the field of firefighting personal safety equipment, including air respirators, there is no domestic competitor comparable to their company. Their main products have been selected as excellent products by the Public Procurement Service, and based on quality and excellence, they are recognized as a leading company in the firefighting personal safety equipment sector.

The personal protective equipment field is directly related to the life and safety of users, requiring the highest level of production technology and quality control technology, making entry barriers high. Hancom Lifecare is also expanding full-scale mask production by acquiring the mask manufacturing company Daeyeong Healthcare.