Shares of hair loss-related stocks surged across the board after Health and Welfare Minister Jeong Eun-kyeong mentioned the possibility of applying national health insurance to hair loss treatment. Buying flooded into companies holding hair loss treatments and hair care products, with some stocks hitting their daily upper limit.
According to the Korea Exchange on Tuesday, JW Pharmaceutical (067290.KQ) traded at 1,775 won in early trading, rising to the daily price ceiling of 29.94%. TS Trillion (317240.KQ) also recorded its upper limit at 29.96%, soaring to 1,206 won. Hyundai Pharm rose 29.84%, approaching its daily limit.
JW Pharmaceutical is classified as a representative hair loss-related stock, selling treatments such as "Monad Tablet" containing finasteride, "Dutamoa Tablet" containing dutasteride, and "Rogaine Foam," a minoxidil formulation. TS Trillion sells hair loss shampoo as its flagship product.
In addition, Inventage Lab (389470.KQ) and Olix (226950.KQ), which hold hair loss treatment pipelines, each posted gains of around 5%, while Bioneer, which is developing siRNA (small interfering RNA)-based hair loss relief cosmetics, recorded a double-digit gain.
The strength in related stocks was directly triggered by the minister's recent remarks. At a policy meeting marking the first anniversary of the government's launch on Saturday, Jeong said the ministry was reviewing whether to apply national health insurance to hair loss treatment.
"There are opinions that hair loss has a significant impact on the health and daily lives of young people, alongside opinions that health insurance should be operated centered on serious illnesses," Jeong said. "Since positive opinions were confirmed in a survey conducted by the National Health Insurance Service, we plan to review whether to proceed by reflecting the results of future public opinion gathering."
The market views the gains as reflecting expectations that prescriptions for related treatments could expand if hair loss treatment is included in health insurance coverage. However, actual coverage is expected to take considerable time, as social discussion is needed regarding the financial burden on health insurance, eligible recipients, and the scope of coverage.
"This is currently a stage where policy expectations are being priced in ahead," a securities industry official said. "Only when the scope and targets of health insurance coverage become concrete will it be possible to gauge the actual beneficiary companies and scale."
