Korean medical AI stocks rise sharply in September to date

VUNO AI-based diagnostic software. [Courtesy of VUNO]

Even as South Korea’s stock market continues its sideways movement, there has been a noticeable surge in the stock prices of companies related to medical artificial intelligence (AI) listed on the Kosdaq market.

On Monday, DreamCIS, a contract clinical research service firm, saw its shares soar by the daily limit of 30 percent to close at 22,450 won ($17). The price spike followed the release of a report from Hana Securities that said DreamCIS is preparing to develop an analytical solution for predicting clinical trial results in collaboration with a medical AI diagnostic solution company.

Korean AI diagnostic firms have grabbed investors’ attention since the beginning of the year, with growing interest in the application of generative AI. The medical AI industry has been primarily led by startups worldwide and foreign investors, faced with the withdrawal or postponement of listings by global medical AI startups, turn to Korean alternatives including Lunit, VUNO, DeepNoid, and JLK.

Medical AI companies started gaining momentum after September, when the stock prices of second battery and semiconductor giants pressed pause on their rally.

Lunit, for instance, saw a significant rise in its stock price this month, which climbed from 167,300 on September 1st to 256,000 on Monday. As a result, the stock moved up to 11th place in market capitalization among Kosdaq companies and according to the Korea Exchange, foreign investors net purchased 181 billion worth of Lunit shares in September, making it the third-highest net purchase on the market.

VUNO, which provides imaging diagnostic solutions, saw its stock price rise by 14 percent from 52,500 to 60,400 during the same period, a neatly sixfold surge compared to the beginning of the year. JLK, which offers AI diagnostic solutions for stroke, also saw a 4.3-fold increase in its stock price in the same period.