SEOUL, March. 11 (Korea Bizwire) — Shares in South Korean tech giants Kakao Corp. and Naver Corp. jumped on Thursday amid expectations that the new government would ease platform regulations.
The stock price of Naver rose by 8.54 percent from the previous trading day to 330,500 won, while that of Kakao jumped by 8.58 percent to 100,000 won.
On the basis of closing price, Kakao saw its share price bounce back to 100,000 won for the first time in about two months.
Other Kakao subsidiaries including Kakaopay Corp. (5.06 percent) and Kakao Games Corp. (4.35 percent) also marked strong gains in their stock price on the day.
The primary factor behind the surge in the share prices of platform companies is the high expectation for regulatory easing following the regime change.
With respect to platform regulation, President-elect Yoon Suk-yeol stressed the need to prevent unfair practices as well as to enhance the protection of consumer rights.
At the same time, however, he pledged that platform regulation will be carried out under the principle of minimal regulation.
Accordingly, chances are high that the legislation of the ‘Online Platform Fairness Act’ proposed by the Moon Jae-in administration would be reconsidered. The platform industry has opposed the legislation, saying that it is excessive.
J. S. Shin (firstname.lastname@example.org)