[Featured Stock] JLK Benefits from Government Digital New Deal Support... Outstanding AI Technology in Brain-Related Fields

[Asia Economy Reporter Hyunseok Yoo] Medical AI company JLK is showing strong performance. The news that the government plans to invest more than 27 trillion won in research and development (R&D) budgets to secure future growth engine competitiveness appears to be influencing the stock price. Additionally, 7 trillion won in innovation venture funds will be supplied to support new digital and green industries and venture startups.

As of 2:07 PM on the 4th, JLK was trading at 9,270 won, up 3.11% (280 won) compared to the previous trading day.

JLK announced that it has submitted a product approval application to the Ministry of Food and Drug Safety under the integrated operation system for its healthcare device JBA-01K. The applied product, ‘JBA-01K,’ is an AI-based brain aneurysm diagnosis assistance software. When a patient’s magnetic resonance angiography (MRA) images are input into JBA-01K, the AI automatically analyzes brain aneurysm lesions.

Once JLK receives product approval for ‘JBA-01K’ under the integrated operation system, it will have an AI-based diagnostic pipeline covering the entire brain disease field, including its existing products plus ▲all product lines for stroke such as MRI and CT ▲dementia-related product lines ▲brain aneurysm products.

Although numerous AI companies worldwide are challenging the medical field, JLK is leading uniquely in the brain-related sector in terms of both research depth and product scope. JLK’s business capabilities are expected to be significantly differentiated not only domestically but also globally.

The Ministry of Science and ICT has been investing 48.8 billion won over three years since 2018 to develop the medical specialized AI ‘Doctor Answer.’ It aims to develop AI that supports prediction and diagnosis tailored specifically for Koreans across various diseases such as cancer, cerebrovascular and cardiovascular diseases, dementia, epilepsy, and rare pediatric genetic disorders.

According to the 2020 budget plan passed at the Cabinet meeting on the 1st, the government plans to increase the future growth engine sector budget from 35.9 trillion won last year to 44.3 trillion won next year, an increase of 8.4 trillion won. This represents about a 24% increase compared to this year.

The government will invest 27.2 trillion won in R&D projects for core and foundational technology development, an 11.5% increase from this year’s 24.2 trillion won. This includes 1.9 trillion won for R&D related to the Korean New Deal such as green technology and AI, 2.2 trillion won for materials, parts, and equipment R&D, 2.3 trillion won for BIG 3 sectors including autonomous vehicle commercialization, 7.3 trillion won for basic foundational R&D such as space and nuclear core technologies, and 300 billion won for talent development including AI graduate schools.