[Alpha Biz= Paul Lee] While South Korea’s benchmark KOSPI has surged more than 1,000 points so far this year, former “national stocks” Naver and Kakao have largely missed the rally, with their combined market influence continuing to fade.

According to data from the Korea Exchange, Naver and Kakao shares have risen just 1.21% and fallen 7.41%, respectively, since the start of the year. As a result, their combined market capitalization now accounts for only 1.48% of total KOSPI market value, down from 3.53% three years ago.

Both stocks remain far below their peak levels. Naver is trading around KRW 250,000, roughly 46% below its July 2021 high, while Kakao has fallen about 67% from its 2021 peak to KRW 57,500. Investor data show average losses of about 9% for Naver shareholders and 36% for Kakao investors.

Recent fund flows have added pressure. In February, institutional and foreign investors were net sellers of both stocks, while retail investors alone bought a combined KRW 7.9 trillion worth, effectively absorbing selling pressure.

Despite solid fundamentals—Naver posted record revenue and operating profit last year, and Kakao is expected to report a sharp rebound in earnings—investors remain cautious. Analysts point to a lack of clear progress in AI monetization and recurring data privacy controversies as key factors weighing on valuations, even amid a broader market boom.

 

 

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