[Kim Sae-mi, Edaily Reporter] On June 22, South Korea’s benchmark KOSPI market witnessed a symbolic changing of the guard: Samsung Electronics, which had held the No. 1 spot by market capitalization for 24 years, ceded the throne to SK hynix.

At the close of trading, SK hynix’s market capitalization stood at 2,080.3782 trillion won, while Samsung Electronics’ was 2,066.6595 trillion won, based on common shares. One investor quipped, “Maybe we should stop calling them ‘Jeon nik’—short for Samsung Electronics and SK hynix—and start calling them ‘Nik jeon’ instead.”

In the biotech and healthcare sector, concerns are mounting over the prolonged concentration of market liquidity in large-cap semiconductor stocks. “Market funds are flowing into select semiconductor names such as SK hynix, leaving KOSDAQ biotech stocks largely neglected,” said an industry official. “Even when biotech companies announce licensing deals or clinical catalysts, the market’s reaction to their stock prices isn’t what it used to be.”

Another industry official noted that Korean biotech investors have become far more selective than before, scrutinizing deal structures and follow-up catalysts more closely. “For biotech stocks to rebound, one or two licensing deals by individual companies may not be enough. The industry likely needs a series of tangible achievements,” the official said.

As domestic biotech stocks have remained weak for an extended period, some companies have also stepped up their efforts to reassure shareholders. They have used public notices, shareholder letters, and investor relations materials to emphasize that their business operations remain intact and that research and development projects are progressing as planned.

Choa Surges on Hopes of Exiting Penny Stock

Status According to KG Zeroin’s MP Doctor (formerly Market Point), shares of Choa Pharmaceutical rose 152 won, or 29.98%, from the previous session to close at 659 won. The stock appears to have been driven by expectations that the company could move out of penny-stock territory.

Cho-a posted a notice on June 19, the previous trading day, announcing a shareholders’ meeting. The key agenda item for the extraordinary general meeting scheduled for July 6 is the approval of a reverse stock split. If approved, the company will conduct a 5-to-1 reverse split, consolidating five common shares into one share and raising the par value from 500 won to 2,500 won.

A reverse stock split reduces the number of outstanding shares while raising the price per share, meaning it does not fundamentally change market capitalization or shareholder value. However, with the Financial Services Commission set to implement new delisting rules for penny stocks starting July 1, companies with low-priced shares have been given a stronger incentive to take preemptive action through reverse stock splits.

Under the new rules, stocks that trade below 1,000 won for 30 consecutive trading days will be designated as administrative issues. If they then fail to recover above 1,000 won for 45 consecutive trading days within the following 90 trading days, they will face delisting procedures.

A number of biotech and healthcare companies have already moved to conduct reverse stock splits in anticipation of the rule change. In addition to Choa, companies including Humasis, HLB BioStep, NeoImmuneTech, C&R Research, FromBio, PeopleBio, and Noul have decided to pursue reverse stock splits this year.

“The stricter delisting rules and requirements for removing penny stocks may serve as a tool to weed out weak companies, but they could also become a burden for biotech companies that are still in the growth stage,” said a financial investment industry official. “The key question is how to evaluate companies that have yet to generate meaningful earnings.”

CG MedTech Gives Back Gains from CGBio Deal

CG MedTech Co., Ltd. gave back part of the gains it posted on June 19, when the stock hit its daily upper limit on news related to its largest shareholder. On June 22, CG MedTech shares plunged 328 won, or 20.27%, from the previous session to close at 1,290 won.

CG MedTech, which specializes in the production of orthopedic medical devices, is majority-owned by CGBio, a regenerative medicine and biomaterials-based medical device company. CGBio is a Daewoong Group affiliate controlled by Yoon Jae-seung, Chief Vision Officer of Daewoong Pharmaceutical, and related parties. CG MedTech’s stock had surged following reports that CGBio would be acquired by the domestic private equity firm IMM Private Equity.

According to the pharmaceutical and biotech industry, IMM PE is expected to sign a stock purchase agreement this week with Yoon and related parties to acquire a 51% stake in CGBio for 561 billion won.

The parties are also said to have agreed on a conditional put option under which an additional 28.1% stake would be sold for another 561 billion won if CGBio’s annual earnings before interest, taxes, depreciation, and amortization (EBITDA) reach 100 billion won—roughly double the current level. If this condition is met, IMM PE’s stake could rise to 79.1%, and the total transaction value could reach up to 1.122 trillion won.

If IMM PE secures control of CGBio, the effective controlling party of CG MedTech will also shift from Daewoong’s owner family to IMM PE. However, the deal does not mean that IMM PE is directly acquiring shares of CG MedTech. Rather, CG MedTech would be indirectly brought under IMM PE’s umbrella as a subsidiary of CGBio.

Hair Loss Stocks Gain on Coverage Hopes

Shares of hair loss-related companies also continued to rise on expectations that national health insurance coverage for hair loss treatment could be expanded.

JW SHINYAK CORPORATION rose 395 won, or 16.92%, from the previous session to close at 2,730 won. SAMIK PHARM gained 550 won, or 6.54%, to finish at 8,960 won.

JW Shinyak offers a range of hair loss treatments, including finasteride-based products such as Monard Tab. and Monastar Tab., as well as the dutasteride-based Dutamoa Tab.

Expectations may also have been partly driven by JW Pharmaceutical—an affiliate of the JW Group—and its hair loss drug candidate, JW0061. JW0061 is a topical hair loss drug candidate that targets the GFRA1 receptor. It has garnered attention as a treatment with a mechanism of action distinct from existing hair loss therapies, which primarily focus on suppressing male hormones.

Samik Pharm has been linked to the hair loss theme through its long-acting injectable platform technology. Earlier this year, the company registered a patent related to polymer microsphere manufacturing technology that could be used to develop a long-acting injectable formulation of baricitinib, a JAK inhibitor used to treat alopecia areata.

“Some of the gains in hair loss-related stocks appear to be driven by theme-based trading flows,” said a pharmaceutical industry official. “Investors need to examine whether the momentum surrounding hair loss is directly tied to each company’s fundamental value.”