Corporate Logo(source: kakaopay.com)
Kakao Pay (377300) tumbled sharply on September 3 as investor sentiment weakened amid judicial risks facing founder Kim Beom-su and growing concerns over an exchangeable bond (EB) overhang.
As of 9:47 a.m., shares of Kakao Pay were trading at 52,600 won, down 9.0% from the previous session. The stock, which had surged to 114,000 won intraday on June 25 on expectations surrounding a won-based stablecoin business, has since plunged to the 50,000-won level in just over two months.
The selloff was attributed to renewed overhang fears. On September 2, Kakao Pay’s second-largest shareholder, China’s fintech giant Ant Group’s Alipay, announced it would issue overseas EBs backed by 11.44 million shares of Kakao Pay common stock, equivalent to an 8.47% stake.
Alipay had previously announced in July that it would issue overseas EBs backed by 4.79 million shares, representing a 3.55% stake. Like the latest offering, those were also short-term EBs with a three-month maturity. Market participants fear that such issuances could eventually lead to Alipay selling down its holdings in the open market.
Adding to investor anxiety, prosecutors recently sought a 15-year prison sentence for Kakao founder and Management Reform Committee Chairman Kim Beom-su on charges related to alleged stock manipulation involving SM Entertainment, further dampening sentiment toward Kakao group stocks.
*[KOSPI]KakaoPay(377300) is a fintech company that launched the first simple payment service in Korea, gradually expanding into services such as remittance, billing, and further venturing into financial services such as lending, investment, and insurance mediation. Market capitalization is 7.807 trillion won (as of September 2, 2025, closing price)
Corporate Logo(source: kakaopay.com)
Kakao Pay (377300) tumbled sharply on September 3 as investor sentiment weakened amid judicial risks facing founder Kim Beom-su and growing concerns over an exchangeable bond (EB) overhang.
As of 9:47 a.m., shares of Kakao Pay were trading at 52,600 won, down 9.0% from the previous session. The stock, which had surged to 114,000 won intraday on June 25 on expectations surrounding a won-based stablecoin business, has since plunged to the 50,000-won level in just over two months.
The selloff was attributed to renewed overhang fears. On September 2, Kakao Pay’s second-largest shareholder, China’s fintech giant Ant Group’s Alipay, announced it would issue overseas EBs backed by 11.44 million shares of Kakao Pay common stock, equivalent to an 8.47% stake.
Alipay had previously announced in July that it would issue overseas EBs backed by 4.79 million shares, representing a 3.55% stake. Like the latest offering, those were also short-term EBs with a three-month maturity. Market participants fear that such issuances could eventually lead to Alipay selling down its holdings in the open market.
Adding to investor anxiety, prosecutors recently sought a 15-year prison sentence for Kakao founder and Management Reform Committee Chairman Kim Beom-su on charges related to alleged stock manipulation involving SM Entertainment, further dampening sentiment toward Kakao group stocks.
*[KOSPI]KakaoPay(377300) is a fintech company that launched the first simple payment service in Korea, gradually expanding into services such as remittance, billing, and further venturing into financial services such as lending, investment, and insurance mediation. Market capitalization is 7.807 trillion won (as of September 2, 2025, closing price)