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Photo = Yonhap news |
[Alpha Biz= Paul Lee] SEOUL, June 10 — Kakao Pay shares have surged by 95.24% over the past month, according to data from the Korea Exchange. During the same period, parent company Kakao rose 35.32%, and KakaoBank climbed 24.89%. The rally in Kakao-related stocks is being attributed to heightened investor expectations that the newly inaugurated Lee Jae-myung administration will move forward with introducing a Korean won-based stablecoin.
Market enthusiasm gained further momentum on June 6 with the appointment of Kim Yong-beom, former Vice Minister of Strategy and Finance, as the first Chief Policy Secretary in the presidential office. Kim has been a vocal proponent of implementing a stablecoin system using the Korean won.
Despite the optimism, JPMorgan issued a report cautioning that the rapid rise in Kakao Pay’s stock is “difficult to justify on fundamental grounds.” The firm emphasized that it is “too early to classify Kakao Pay as a clear beneficiary” of potential stablecoin-related policy changes, citing significant uncertainty regarding the actual rollout of such a system.
JPMorgan also downplayed the anticipated benefits from government-led local currency voucher initiatives. “Consumption-stimulating policies using regional vouchers are likely to be one-off in nature,” it said, estimating the impact on Kakao Pay’s operating profit this year at just KRW 3 billion (approximately USD 2.2 million).
The investment bank likened the current rally in Kakao group shares to the speculative surge seen in late 2022 to early 2023, when prices rose more on expectations than on performance.
As of Monday’s close, Kakao Pay jumped 15.96% to KRW 57,400. In contrast, Kakao and KakaoBank declined by 2.72% and 2.74%, respectively.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
