[Featured Stock] Oseong Advanced Materials Expected to Benefit from Korea Investment Corporation's Expanded Investment in 'Marihuana'

[Asia Economy Reporter Minwoo Lee] The stock price of Oseong Advanced Materials, which is conducting research and business related to marijuana (cannabis), is on the rise. The news that Korea Investment Corporation has expanded its investment in marijuana appears to have acted as a positive factor.

As of 1:40 PM on the 20th, Oseong Advanced Materials' stock price is recorded at 2,605 KRW, up 5.47% from the previous day. According to Capital Watch, an economic foreign media outlet, on the 19th (local time), Korea Investment Corporation, the Korean sovereign wealth fund, purchased 260,540 shares of the Canadian marijuana company 'Aurora Cannabis' on the New York Stock Exchange in the first quarter of this year. This brings their total holdings to 286,928 shares.

Recently, Aurora Cannabis announced results that exceeded expectations, causing its stock price to rise by about 70%. This was due to a boom triggered by the spread of fear over the novel coronavirus (COVID-19) in the United States, where Americans regarded marijuana as an essential stockpile item alongside toilet paper, leading to panic buying. At that time, marijuana sales in California increased by 159% compared to the same period the previous year. Washington State and Colorado also saw increases of 100% and 46%, respectively.

Meanwhile, Oseong Advanced Materials officially entered the medical marijuana business in 2018 by partnering with the Korea Advanced Institute of Science and Technology (KAIST). They established a 100% subsidiary, Cannabis Medical, and reportedly invested about 3 billion KRW in research funding to conduct research and development utilizing the marijuana chemical compound 'cannabinoid.'

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