Game Changer 'Kakao' Rising Will Reshape Market Capitalization

Market Shift with KakaoBank IPO
Enters KOSPI at 11th in Market Cap
Group Market Cap Soars to 100 Trillion KRW, 5th Place
KOSPI Total Market Cap Reaches Record High

[Asia Economy Reporter Song Hwajeong] The listing of KakaoBank has caused a seismic shift in market capitalization. KakaoBank successfully entered the KOSPI at 11th place by market cap, instantly securing the top spot among financial stocks, while the Kakao Group surpassed a market cap of 100 trillion KRW, rising to 5th place among domestic conglomerates by market cap. The total market capitalization of the KOSPI also expanded to an all-time high.

As of 9:30 AM on the 9th, KakaoBank was trading at 78,400 KRW, up 8,600 KRW (12.32%) from the previous day. Having ranked 11th in market cap on its first day of listing on the 6th, KakaoBank jumped two spots in one day to reach 9th place during intraday trading.

Although KakaoBank, considered a major IPO, failed to achieve "dasang" (opening price at double the IPO price followed by a limit-up), it closed at the limit-up price, exceeding the IPO price by 79%, demonstrating its stature as a major player. On its first day, KakaoBank ranked 11th by market cap, surpassing financial holding companies to instantly claim the top financial stock position. On the second day of listing, it continued its early surge, easily entering the top 10 and impressively rising to 9th place by overtaking Kia and then Celltrion.

With KakaoBank’s listing, the Kakao Group’s market cap surpassed 100 trillion KRW. As of the closing price on the 6th, the Kakao Group’s market cap reached 104.7196 trillion KRW, placing it 5th among domestic conglomerates by market cap. The ranking by market cap among conglomerates is Samsung Group, SK Group, LG Group, Hyundai Motor Group, followed by Kakao Group.

The total market capitalization of the KOSPI also expanded to an all-time high. As of the closing price on the 6th, the total market cap of the KOSPI reached 2,334.6289 trillion KRW. This surpassed the previous record of 2,314.4173 trillion KRW recorded on the 6th of last month when the KOSPI hit its all-time high of 3,305.21. Although the index has declined since last month’s 6th, the market size has grown by more than 20 trillion KRW due to KakaoBank’s listing.

Kakao Group companies have been leading changes in stock market capitalization since last year. Kakao was ranked 23rd on the KOSPI with a market cap of 13.1476 trillion KRW at the beginning of last year but entered the top 10 in May by surpassing the traditional powerhouse Hyundai Motor. This year, the stock price surged significantly from May, reaching 3rd place by market cap in June. As of the closing price on the 6th, the market cap was 64.669 trillion KRW, an increase of over 51 trillion KRW compared to early last year.

Kakao Games, which was listed on the KOSDAQ in September last year, has also been steadily growing, recently rising to 2nd place by market cap. Entering at 5th place with a market cap of 4.568 trillion KRW, Kakao Games has grown to 6.1307 trillion KRW and is currently ranked 3rd by market cap. Kakao Games, which had risen to 2nd place last month, dropped to 3rd this month due to negative news from China and profit-taking. Among the four stocks that were ranked higher than Kakao Games at the time of its listing, only Celltrion Healthcare still ranks above Kakao Games.

With major Kakao Group stocks expected to continue listing, the Kakao Group’s market cap is projected to keep growing. Kakao Pay, Kakao Entertainment, and Kakao Mobility are awaiting IPOs. Kakao Pay is expected to go public in October, while Kakao Entertainment and Kakao Mobility are anticipated to pursue IPOs next year. Kim Donghee, a researcher at Meritz Securities, said, "The IPO momentum of Kakao’s core fintech subsidiaries is strengthening further," adding, "The successful IPO of KakaoBank has heightened expectations for Kakao Pay’s IPO, which is expected around mid-October. This timing is optimal as it coincides with the launch of the Mobile Trading System (MTS), marking the beginning of its growth as an investment platform."

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