Quantum tech stocks surge after government’s growth plan

Researchers at the National Institute of Standards and Technology (NIST) have developed a quantum mechanics-based method for generating random numbers. [Courtesy of Irvine/NIST]

Quantum science and technology stocks are on the rise on Friday, following reports that the South Korean government is pushing to exempt the preliminary feasibility study for its flagship project.

Shares of Korea Computer & Systems Inc. were trading at 7,020 won ($5.2) as of 10:35 a.m. on Friday, up 24.69 percent from the previous session.

The company is engaged in the development of quantum random number generation products with SK telecom Co.

Shares of Wooriro Co. also gained 15.82 percent to 1,3030 won, Coweaver Co. increased 6.4 percent to 4,990 won, and Dream Security Co. 2.11 percent to 2,910 won.

A local media reported on Thursday that the Ministry of Science and ICT will decide whether to exempt the Quantum Science and Technology Flagship Project from the preliminary feasibility study at a national R&D project evaluation meeting next week.

The government has previously selected quantum science as one of the main focuses of its R&D budget.

Meanwhile, Hanwha Galleria Co.’s shares also surged on Friday following reports that its Vice President Kim Dong-sun plans to make a 54.4 billion won tender offer for the company’s shares.

Hanwha Galleria shares were trading at 1,494 won as of 10:38 a.m., up 14.66 percent from the previous day. Earlier in the morning, the stock reached 1,579 won, up 21.18 percent.

Hanwha Galleria announced that Kim will conduct a tender offer to buy 34 million common shares at 1,600 won apiece between Friday and September 11. The 34 million shares repurchased by Kim account for 17.5 percent of the entire common shares.

The company expects that if the proportion of Hanwha Galleria shares traded on the stock market decreases from 60 percent to 42.5 percent as a result of this buyback, it could lead to a long-term increase in the share price.

“Kim‘s decision to make a tender offer for the company’s shares reflects his strong commitment to growing the company together with shareholders,” said Kim Young-hun, chief executive officer of Hanwha Galleria. “This buyback could send a positive signal to the stock price and corporate value.”