Stock Surge of Company A Producing Negative Pressure Rooms During COVID-19 Spread
Related Stocks Fluctuate Amid April's COVID-19 Outbreak from Entertainment Venues
"Is Making Money Everything?" Criticism... "Profit Is the Reason for Investment" Rebuttal
Experts Call for 'Value Investing' Prioritizing Social Values
On April 20th, the KOSPI index, KRW-USD exchange rate, and KOSDAQ index were displayed on the electronic board in the dealing room of Hana Bank in Euljiro, Jung-gu, Seoul. Photo by [photographer's name].
[Asia Economy Reporter Park Hyun-joo] "Where are the COVID vaccine syringes made? I need that information," "Ah, I hope COVID lasts a bit longer..."
In a capitalist society, stock investment is part of economic activity. However, some people select stocks related to global disasters like COVID-19 or so-called 'recession profit stocks' that rise during economic downturns, making profits, which has drawn moral criticism.
They are criticized as unscrupulous investors insensitive to others' suffering, solely pursuing profit?so-called 'stock sociopaths.' On the other hand, some argue that this is merely legal investment activity, and the goal of investment is to generate returns.
Among investors, there are voices expressing incomprehension toward the obsession with making profits. Choi, a man in his 50s working in an office, said, "I also invested in stocks based on COVID-19 trends. It's true that when you start investing, you pay attention to corporate news like mergers and acquisitions," but added, "However, linking others' suffering with personal economic gain is not moral. If a company I invested in engages in unethical management, I would immediately stop investing as long as I don't incur losses."
Amid ongoing criticism of speculative investment, in December last year, when the third wave of COVID-19 hit and news spread that emergency patients could not be admitted due to a shortage of negative pressure rooms, stocks related to negative pressure rooms surged in the stock market.
Company A, which possesses negative pressure room manufacturing technology, hit the upper price limit at 6,240 KRW, up 1,440 KRW (30.00%) from the previous day on the 7th of the same month, when over 600 new confirmed cases occurred for two consecutive days.
On the 14th, when the government announced plans to secure additional intensive care beds, Company B, which has mobile negative pressure room technology, rose 4,300 KRW (29.97%) to 18,650 KRW. These stocks also attracted attention during the signs of the fourth wave of COVID-19 originating from entertainment establishments in April.
While some were suffering after testing positive for COVID-19, related stocks were literally jumping up and down.
On March 19th, an employee is walking back and forth in front of the stock market status board at the KB Kookmin Bank dealing room in Yeouido, Yeongdeungpo-gu, Seoul. / Photo by Yonhap News
On the other hand, there is a counterargument that this is legitimate economic activity. Although social criticism may exist, it is argued that there is no problem at all. The pursuit of profit by individual investors is a natural economic activity in the stock market. Moreover, since they have not committed financial crimes like stock manipulation, there is no reason for them to bear moral responsibility.
Hyun, a 25-year-old job seeker, said, "(Their profit-seeking is) fully understandable," emphasizing, "Their investment amount could be their salary, living expenses, or a lump sum they have saved over a lifetime." He added, "If there is confidence in making a profit, investing is natural. Individual investment actions do not cause pain or harm to others, do they?"
Park, a 26-year-old office worker with three years of experience, shares the same view. He said, "Since stock prices fluctuate depending on corporate incidents and accidents, if I own certain stocks, I would naturally check the stock prices."
Experts warn that this is a social phenomenon caused by excessive materialism, and if this situation continues, our society could eventually develop moral insensitivity.
Professor Kwak Geum-joo of Seoul National University’s Department of Psychology criticized, "It has become natural to pursue profit without empathy or understanding of others' emotions or suffering," adding, "More people are thinking 'As long as I make money,' or 'As long as I don't break the law.'"
She continued, "There are no measures or legitimacy to regulate investors lacking social sensitivity, but the psychology that sympathizes with materialistic trends could spread throughout society. If this becomes the norm, society will become harsh."
Regarding values in stock investment, she suggested, "'Good corporate consumption movements' and 'boycotts of controversial companies' are common. If value investing that prioritizes social values is practiced in stocks, our society will mature further."
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