[Asia Economy Reporter Hyunseok Yoo] Pungkukjujeong is showing strong performance. It appears that the medical gas business operated by Seondo Industry, in which it holds a 50% stake, has been highlighted.
As of 11:12 AM on the 9th, Pungkukjujeong was trading at 17,450 KRW, up 1,950 KRW (12.58%) compared to the previous trading day.
The Korea Medical High-Pressure Gas Association recently urged the government to prepare measures to prevent a second "urea water" crisis, stating that the number of companies giving up medical oxygen production is increasing amid the rapid rise of severe COVID-19 patients in Korea. According to the association, out of 144 medical oxygen manufacturers nationwide as of the end of 2015, 49 companies have returned their business licenses due to inability to bear losses, leaving about 95 companies currently operating.
Pungkukjujeong holds a 50% stake in Seondo Industry. Seondo Industry operates businesses including fumigants, medical gases, and industrial gases. Among these, medical gases are used for medical carbon dioxide, nitrogen, oxygen, and others.
In its quarterly report, the company explained about Seondo Industry, "With the recent increase in demand for medical gases due to aging population and other factors, receiving GMP (Good Manufacturing Practice) certification, which enables the production and supply of high-quality and safe pharmaceuticals, is expected to lead to significant sales growth in the medical gas market."
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