'Regulatory Risk' for Kakao... Stock Price Falls Below 120,000 Won for the First Time in 4 Months

[Asia Economy Reporter Oh Hyung-gil] As Kakao's stock price, targeted for regulation by financial authorities and political circles, continues to weaken, it has fallen below 120,000 won for the first time in about four months.

On the 17th, Kakao closed at 119,500 won on the Korea Exchange, down 1.65% from the previous day. This marks the fifth consecutive trading day of decline.

It is the first time in about four months since May 26 (119,500 won) that the closing price has fallen below 120,000 won.

The stock price showed weakness as financial authorities and political circles raised the need for regulation of online platforms.

On the 14th, Kakao proposed coexistence measures with local businesses, but the Korea Communications Commission also announced plans to regulate platforms, indicating that the 'regulatory risk' has not been completely resolved.

On the same day, Korea Investment & Securities said, "Considering the overall regulatory risk highlighted regarding Kakao, we have lowered the value of KakaoTalk by about 7 trillion won compared to before," and lowered Kakao's target price from 180,000 won to 160,000 won.

The previous day, Samsung Securities (200,000 won → 180,000 won) and Hanwha Investment & Securities (185,000 won → 170,000 won) also lowered Kakao's business value and target price considering regulatory risks.

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