"Should We Enter Kakao Bank Now?" Retail Investors 'Kakao Pickup'... Will Low-Price Buying Continue?

Kakao Stock Narrows Decline After Announcing 'Win-Win Plan'
Previously in Continuous Downtrend...Some Individual Investors 'Buy the Dip'
Diverse Opinions Like 'Buy', 'Sell', 'Hold' Emerge in Community

On the morning of the 10th, when Kakao Games was listed on the KOSDAQ market, the Kakao Friends character 'Ryan' was placed in the lobby of the new building of the Korea Exchange in Yeouido, Seoul. Photo by Korea Exchange

[Asia Economy Reporter Han Seung-gon] "Is it okay to buy now?", "Let's just wait and see.", "If you hold on, you can escape."

The stock price of Kakao, which had been falling continuously due to the government's and political circles' platform regulation stance, rebounded following the announcement of a 'win-win plan.' Until now, the stock prices of Kakao and its affiliates such as KakaoBank had been declining. During this process, some individual investors judged it as a buying opportunity at the bottom and started buying, while others sold to recover losses due to the stock price rebound. Individual investors, often called ants, showed various opinions on the news of Kakao's stock price rebound on the previous day (14th).

Kakao's stock price fell below 110,000 KRW intraday for the first time since May 27 (intraday low of 119,500 KRW). However, on the previous day, the stock price reduced its decline around 2 p.m., coinciding with Kakao's announcement of the win-win plan.

Kakao's stock price turned strong intraday and rose by 1.2% to 126,000 KRW. Kakao affiliates that had shown a simultaneous weakness, such as KakaoBank (7.89%), Neptune (1.09%), and Kakao Games (0.84%), all rebounded.

In particular, KakaoBank, which was listed on the KOSPI on the 6th of last month and gained popularity mainly among people in their 20s and 30s, attracted much attention due to the stock price decline and rebound news. At that time, KakaoBank closed at 69,800 KRW on its first day of listing. Although it failed to achieve 'ttasang' (opening price formed at twice the IPO price followed by the upper limit price), it closed the day at the upper limit price. On that day, foreigners net bought KakaoBank stocks worth 225.4 billion KRW, and institutions also purchased 99.6 billion KRW worth.

On the afternoon of July 27, the general subscription deadline for KakaoBank's public offering, a related notice was posted at the Korea Investment & Securities branch in Yeouido, Seoul.
[Image source=Yonhap News]

As KakaoBank, which had a kind of spectacular debut, recently showed a downward trend, individual investors, especially in online communities, expressed heavy moods, discussing deep sighs and the timing of selling.

They showed various opinions such as "Should I sell KakaoBank now?", "Should I hold on and wait?", and "The bubble was severe." Among them, one individual investor posted a photo of their loss amount and sighed, saying, "For now, I will hold on." Although the stock price rebounded, the loss amount had been large, so they could not sell.

Also, some individual investors continued buying amid the daily falling stock price news. Recently, they took Kakao's stock price crash as a buying opportunity at the bottom.

Kim, a company employee in his 30s, said, "(The stock price) could fall further, but I bought some KakaoBank stocks," adding, "There might be some fluctuations, but isn't it only a matter of time before it rises?"

Another office worker in his 40s, Lee, also said, "I think now is the opportunity," and "I plan to buy some Kakao-related stocks as soon as this adjustment period ends."

Kakao Pangyo Office Building View [Image Source=Yonhap News]

Summarizing the situation, from Kakao's perspective, this terrible stock price crash period is interpreted as a kind of good news for individual investors. According to Market Point on the 12th, individuals took Kakao as a low-price buying opportunity. Individuals bought as much as 1,037.257 billion KRW worth of Kakao stocks. They also net bought 414.377 billion KRW worth of KakaoBank stocks.

This can be seen as a result reflecting the psychology of 'buy when cheap.' As Kakao's stock price rebounds, the movement to buy before it rises further is expected to continue for the time being.

Previously, KakaoBank's stock price continued to decline due to concerns about short selling following the release of institutional mandatory holding shares and inclusion in the KOSPI 200 index, along with the political circles' platform regulation stance. However, according to the Korea Exchange on the 14th, KakaoBank's stock price rose 7.89% from the previous day to 69,700 KRW. Intraday, it rose as much as 11.92%.

The reversal to an increase that day was influenced by buying from foreigners and institutions. Foreigners net bought 49 billion KRW that day. Additionally, institutions also net bought 20.4 billion KRW. Individuals, however, net sold 68.6 billion KRW.

Meanwhile, as part of a win-win effort, Kakao prepared a win-win plan that includes establishing a support fund for small business owners and adjusting some businesses. Kim Beom-su, Chairman of Kakao's Board of Directors, said on the 14th, "Recent criticisms are a strong alarm ringing in society," adding, "It is time for Kakao and all its affiliates to boldly abandon the growth methods pursued over the past 10 years and make fundamental changes for growth that fulfills social responsibility."

Earlier, Kakao and major affiliate representatives held a full meeting over two days starting on the 13th and agreed on a win-win plan including 'withdrawal from businesses causing neighborhood market controversies and reorganization focusing on innovative businesses,' 'establishment of a 300 billion KRW fund over five years to expand partner support,' and 'focusing on creating social value at K Cube Holdings.'

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