Shares of Kakao Corp., one of South Korea’s top tech companies, jumped on Wednesday as political instability surrounding President Yoon Suk Yeol shook the nation. The stock surged 6.87 percent as of 11 a.m., trading at 45,900 won ($32.40), as investors appeared to bet on a potential easing of regulatory pressure on the company.
Kakao shares had a rocky start, opening 1.75 percent lower at 42,200 won amid market uncertainty following President Yoon’s surprise declaration of emergency martial law late Tuesday night. The stock initially dropped to 41,600 won but rebounded sharply, reaching as high as 47,100 won.
Kakao’s affiliates also saw strong gains. Kakao Pay jumped 12.27 percent to trade at 30,150 won, while Kakao Bank rose 2.56 percent to 24,050 won, and Kakao Games climbed 2.19 percent to 19,110 won.
The rally comes as President Yoon faces mounting challenges. His brief imposition of martial law -- quickly overturned by the National Assembly within six hours -- has sparked talk of impeachment from opposition parties, further weakening his political standing.
For Kakao, this political shift could bring relief. The company has often been at odds with the Yoon administration, which has accused it of monopolistic practices. Last year, President Yoon publicly criticized Kakao’s ride-hailing service, Kakao Taxi, calling for stricter government oversight.
Institutional investors appear to see the political crisis as a turning point. They led the charge on Wednesday, purchasing over 20 billion won's worth of Kakao shares by mid-morning.
The stock’s rebound also comes in the wake of high-profile legal troubles for Kakao founder Kim Beom-soo, who was recently arrested on charges of stock price manipulation.
