Superconductor stocks in roller coaster in Korea amid breakthrough doubts

An image of superconductor. [Photo by Yonhap]

Stocks related to new superconductors claimed recently by South Korean scientists have undergone a tumultuous ride, experiencing extreme fluctuations within a single trading day.

According to the Korea Exchange, a number of stocks related to superconductors surged by more than 20 percent on Tuesday morning and then plummeted close to the lower limit in the afternoon.

Shares of Sunam Co., a green energy technology company, climbed 22.36 percent to 15,430 won ($11.7) before dropping to 8,830 won in the afternoon.

Shares of Duksung Co. also surged 24.37 percent to 14,800 won before closing 29.41 percent down at 8,400 won on Tuesday. Shares of Mobiis Co. rose 22.32 percent to 4,630 won in the morning but closed at 2,815 won, down 25.63 percent.

The extreme swings began shortly after research results were announced in late July by a joint team from Hanyang University and the Quantum Energy Research Center, which claimed the discovery of a superconductor that works at room temperature, named LK-99.

Superconductor-related stocks have skyrocketed since, until a two-day correction occurred on August 6 and 7, followed by another uptrend on Tuesday morning, driven by a wave of buying that led to over a 20 percent increase.

On Tuesday afternoon, however, a simultaneous drop was witnessed in the prices of the stocks following the latest news reports that denied LK-99 as a superconductor.

The Condensed Matter Theory Center (CMTC) at the University of Maryland stated on X, formerly known as Twitter, that “LK99 is NOT a superconductor, not even at room temperatures (or at very low temperatures),” calling it “a highly resistive, poor quality material.”

The message added that there is “no point in fighting with the truth. Data have spoken.”

Kim Hyun-tak, a research professor at William & Mary University who was involved in the claimed discovery of LK-99, stated in a recent email interview with Maeil Business Newspaper that he believes LK-99 is a new material demonstrating superconducting characteristics, although he noted that more time is needed.

“Since the scientific community itself has not yet fully grasped its exact nature, I hope the attention on this new material continues for the necessary time,” Kim said.

Amid extreme market fluctuations driven by secondary battery stocks and more recently by superconductor stocks, the financial watchdog, in the meantime, has heightened its level of caution.

Expressing concerns about the patterns of rapid ups and downs in the stock market related to certain stocks, Governor Lee Bok-hyun of the Financial Supervisory Service called for careful monitoring of the latest stock market trends to prevent aggressive margin trading and the consequent increase in loans during an FSS meeting on Tuesday.

The governor also emphasized strict actions against any unfair trading activities, implying an upcoming crackdown by the FSS targeting the spread of false rumors related to certain popular stocks through online communities.