 |
| The logo of Kakao T, the nation's largest taxi-hailing app, is seen on top of a cab in front of Seoul Station on June 28. Yonhap |
By Lee Min-hyung
Kakao investors are feeling increasingly frustrated by a steep fall in the price of the company's stock after the mobile platform operator decided to sell the management rights of its mobility subsidiary.
Kakao shares had shown signs of a rebound up until early last week. The stock price dipped below 70,000 won in June, hit hard by sagging stock market sentiment here and abroad. But it recovered to 73,500 won as of July 6 after extending a winning streak for four consecutive trading days from the start of this month.
But the company lost its momentum for an additional rally afterwards. Major large-cap stocks here bounced back on July 7 in tandem with the benchmark KOSPI's 2-percent rebound. But this was not the case for Kakao, the stock of which ended down amid rumors that the company plans to sell a stake in Kakao Mobility to a Seoul-based private equity fund (PEF).
Kakao also confirmed that it would become the second-largest shareholder of the subsidiary by selling a double-digit stake to an investor rumored to be MBK Partners.
According to data from the Korea Exchange, the combined market capitalization of Kakao and its four other subsidiaries reached 59.7 trillion won as of July 8. The figure more than halved from the end of November of last year.
Kakao's share price once topped 170,000 won in June 2021 during a stock market boom, but nosedived to below 72,000 won on Friday. This fall has put Kakao investors in a dilemma at a critical time when the firm's top management has been mired in a series of ethical controversies.
The latest decision to relinquish management control over Kakao Mobility also hampers efforts to rev up Kakao's stock value. Kakao is the largest shareholder of the subsidiary, with a 57.5-percent stake, but it is considering selling possibly more than a 10-percent stake to the local PEF due to falling profitability.
In response, Kakao's labor union expressed strong opposition to the decision. The union will hold a press conference on July 11 to protest its management's latest move.
"No one will understand the top management's move to sell the subsidiary to the PEF, as they have so far pledged to fulfill their social responsibility," the union said. "Kakao's employees and executives will join hands to urge management to make the right decision."
![[INTERVIEW] Korea has great opportunity to lead green transition](https://img.koreatimes.co.kr/upload/thumbnailV2/7321cddf734c43269db9ae00b4d9ddd7.jpg/dims/resize/178/optimize)
![[INTERVIEW] Namseoul University leads adoption of innovative IB education programs](https://img.koreatimes.co.kr/upload/thumbnailV2/5291e6a2f3df420e83c62c2c4f712591.jpg/dims/resize/178/optimize)
![[INTERVIEW] Song Kang discuss shortened screen time in 'Sweet Home 2'](https://img.koreatimes.co.kr/upload/thumbnailV2/e276a5e482b0485f9221a23f7de99c0d.jpg/dims/resize/178/optimize)
![[INTERVIEW] Meet the man behind giant rubber ducks that once took over Seoul](https://img.koreatimes.co.kr/upload/thumbnailV2/df32c60c8204448e98ccdb9841366bec.jpg/dims/resize/178/optimize)
