Cacao and neighbors plunged and were set to the biggest decline in years after South Korean lawmakers warned the country’s Internet giants about abusing market power in pursuit of profits.
Kakao, the operator of South Korea’s largest messaging and social media service, plummeted by more than 11% towards the worst decline since 2012. Naver, which runs the messaging platform Line and numerous apps, fell by more than 8%. We are poised to suffer the greatest loss in six years.
Cocoa should not follow the vast path of the country Zaibatsu The ruling Democratic Party of Japan’s prime minister, Song Young-gil, told the conglomerate, which ignored fair competition, to a forum hosted by fellow lawmakers, Yonhap News Agency reported. According to another report from Dong-A Ilbo, the ruling party has decided to focus on platform operators in its annual meeting audit starting October 1.
South Korea is moving to curb foreign and local tech companies, reflecting months of crackdowns in China that have wiped out more than $ 1 trillion in value for China’s largest companies.
Like Beijing, Seoul regulators and politicians have expressed concern about the growing power and reputation of Internet companies such as cacao, neighbors and Coupin after the pandemic has spurred an unprecedented surge in Internet activity. bottom.
eBEST Investment & Securities Co. “Regulatory issues are not a one-time issue. If stock performance is very high, regulatory issues can be hit hard,” said Sung Jonghwa, an analyst at.
Cacao and neighbors were one of the most prominent beneficiaries of the pandemic stay-at-home order on the Korean stock market.
Neighbors have risen 32%, while cocoa has risen 78% in the last 12 months. This is supported by the mega share floats of subsidiaries such as Kakao Games Corporation and Kakao Bank Corporation.
South Korean lawmakers have recently targeted large technology and industrial parks like Samsung Electronics over monopoly behavior and corruption scandals. This week’s move is one of the strongest to date for the domestic Internet sector, which has grown to rival traditional conglomerates in terms of corporate strength and market value.
In addition to parliamentary criticism, the sector is also facing pressure from financial regulators. The Financial Services Commission said Tuesday that online platforms that promote financial products could be subject to regulations that seek to protect consumers.
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