[Alpha Biz= Paul Lee] SEOUL, Sept. 3, 2025 – Kakao Pay’s stock price tumbled more than 10% on Wednesday amid heightened concerns over an overhang risk triggered by major shareholder Alipay’s latest share-backed exchangeable bond (EB) issuance.



According to the Korea Exchange, Kakao Pay closed at ₩52,000, down ₩5,800 (–10.03%) from the previous session. The fintech firm’s shares, which had surged to ₩114,000 in late June on optimism over a won-based stablecoin business, have since retreated to nearly half that level.



The sharp decline followed a regulatory filing that Alipay, Kakao Pay’s second-largest shareholder, will issue overseas EBs backed by 11,648,791 shares (8.62% stake). The exchange price was set at ₩54,014, with a total transaction value of approximately ₩629.2 billion. The bonds will be issued on October 2, 2025, and mature on December 29, 2025.



This comes just weeks after Alipay issued a separate EB in August backed by 4,830,681 Kakao Pay shares, raising about ₩285.5 billion at a disposal price of ₩59,100 per share. The back-to-back issuances have fueled investor concerns over sustained selling pressure.



Adding to the uncertainty, Kakao founder Brian Kim, chairman of the group’s Management Renewal Committee, is facing legal risks. Prosecutors recently sought a 15-year prison sentence and a ₩500 million fine against him over alleged stock manipulation involving SM Entertainment.



Meanwhile, Kakao Pay announced on September 1 that it will inject ₩100 billion into its wholly owned subsidiary, Kakao Pay Insurance, through a rights offering, underscoring continued financial support for its affiliates.

 

 

 

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