When Ants Focus on 'Kabang', Foreigners Choose 'Kakao'

Foreigners Ranked 2nd in Net Buying This Week... Four Consecutive Days of Buying
Entering Low-Price Buying as Stock Prices Recently Falter

[Asia Economy Reporter Minwoo Lee] As more than 58 trillion won poured into the general investor subscription for KakaoBank's initial public offering (IPO), foreign investors have started buying Kakao shares again, which have recently undergone a price correction. Although the positive sentiment from the fintech (finance + technology) subsidiary's listing expectations has faded, they are seen to be buying at the low point by focusing on the growth potential of shopping, advertising, and mobility.

According to the Korea Exchange on the 28th, foreign investors net purchased 89.2 billion won worth of Kakao shares in the KOSPI market during the week of the KakaoBank subscription (26th-27th). This is the second-largest net purchase among all stocks by foreign investors. They have been accumulating Kakao shares for four consecutive trading days from last week until the day before. This is the first time since the 11th of last month that foreign investors have bought Kakao shares for more than four consecutive trading days. On the previous day alone, they bought 64.8 billion won worth, marking the largest net purchase since the beginning of the month (7th).

It is interpreted that they took advantage of the price drop below 150,000 won, caused by the disappearance of catalysts such as the KakaoBank listing, to buy at a low price. According to KB Securities, the lead underwriter of the KakaoBank listing, a total subscription deposit of 58.202 trillion won was gathered from four securities firms as of the previous day's general subscription closing. This ranks fifth historically, although it falls short of SK IE Technology (80.9017 trillion won) and SK Bioscience (63.66198 trillion won). Nevertheless, considering it was the first subscription after the ban on multiple subscriptions and the controversy over the overvaluation of the public offering price, it is regarded as a relatively successful subscription.

Despite the completion of the KakaoBank subscription, it appears that the growth momentum remains intact. Kakao Pay is scheduled to go public within this year. Although the listing has been postponed from next month to the fourth quarter, its potential remains strong. Kakao's own shopping and advertising divisions continue to maintain steady revenue growth. In particular, Kakao Mobility is growing into a platform encompassing all mobility-related services such as taxis, parking lots, and quick services.

Sohee Kim, a researcher at Hanwha Investment & Securities, said, "In the second half of the year, Kakao's revenue growth rate is expected to be in the mid-30% range, the highest among domestic and international peers, and profitability will recover more sharply due to the investment recovery phase in new businesses." She added, "Especially, Kakao Mobility will become a 'secret weapon' for Kakao's stock price increase in the future."

This content was produced with the assistance of AI translation services.