Stock Market 'Newcomers' KakaoBank and Krafton Shine Even in a Downturn

Despite Consecutive Declines, KOSPI and KOSDAQ Both Hit New Highs

Yoon Ho-young, CEO of Kakao Bank, is announcing the listing plan at the IPO press talk held at the Conrad Hotel in Yeouido, Seoul, on the morning of the 20th of last month.
[Image source=Yonhap News]

[Asia Economy Reporter Minwoo Lee] Newcomers to the stock market such as KakaoBank and Krafton continued their outstanding upward trend despite the sharp market decline.

According to the Korea Exchange on the 20th, KakaoBank closed at 92,000 KRW on the previous day, up 8.88% from the day before. At 9:46 a.m. that day, it rose to 94,000 KRW, setting a new high. Krafton also closed at 492,000 KRW, up 5.01% on the previous day. As of 9:15 a.m. that day, it recorded 510,000 KRW, up 3.55% from the previous day, also setting a new high. Although it fell to 405,000 KRW, down 18.7% from the IPO price on the first day of listing due to a failed subscription, it succeeded in rebounding.

It was particularly notable that they showed an upward trend even as the market sharply declined the previous day. The KOSPI closed at 3,097.83 on the previous day, falling to the 3,000 level for the first time in four months since April 1 (3,087.40). While 80% of the top 20 market capitalization stocks plunged, only the stock market 'newcomers' KakaoBank and Krafton, listed on the 6th and 10th respectively, rose more than 5%, showing a distinctive performance.

This is interpreted as investors considering them as new investment destinations due to solid earnings and high growth potential. In the second quarter of this year, KakaoBank recorded a net profit of 69.3 billion KRW, up 158.7% year-on-year and 48.5% quarter-on-quarter. Won-denominated loans grew 7% quarter-on-quarter, and the net interest margin (NIM) improved by about 4 basis points (bp; 1 bp = 0.01%). The platform also maintained steady growth in linked loans and linked account fees.

On the afternoon of the 2nd, the first day of Krafton's public offering general subscription, investors are receiving consultations at a securities firm counter in Seoul. [Image source=Yonhap News]

Krafton also posted strong results. In the second quarter of this year, it recorded consolidated sales of 459.3 billion KRW and operating profit of 174.2 billion KRW, up 106.0% and 139.0% year-on-year, respectively. With the upcoming release of the new title ‘Battlegrounds: New State,’ expectations are growing that sales growth in emerging markets will reduce dependence on Chinese sales.

There is also analysis that investors’ funds poured in anticipating inclusion in various indices. KakaoBank was decided on June 6 (local time) to be early included in the Morgan Stanley Capital International (MSCI) Emerging Markets Index. It will be officially included based on the closing price that day. Krafton is also highly likely to be specially included in the KOSPI 200 index on July 9.

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