[Special Stock] Zoom Internet Challenges Yoon Government's Portal Monopoly... 'David' Taking on 40 Trillion Won Naver Dominance

[Asia Economy Reporter Hyungsoo Park] Zoom Internet is showing strong performance. It appears that the news of the Yoon Seok-yeol administration undertaking a major overhaul of news services on internet portal sites is influencing the stock price. There are expectations that the monopolistic position of Naver and Kakao in the domestic portal market will weaken.

As of 10:41 AM on the 3rd, Zoom Internet is trading at 6,610 KRW, up 16.37% from the previous day.

According to the Presidential Transition Committee, the plan is to abolish the news editing rights of portal sites and gradually convert the news partnership system to outlink. Naver and Kakao have a combined daily average user count of 80.82 million.

The Transition Committee judged that portals exercise de facto news editing rights, leading public opinion formation and acting as hosts for fake news. They plan to establish an algorithm verification body that oversees the method of arranging news.

Zoom Internet provides internet-based services such as search, news, community, and blogs through its internet portal site Zoom.com.

The market capitalization of Naver and Kakao is around 40 trillion KRW, while Zoom Internet's market capitalization is 160 billion KRW. While Naver and Kakao dominate the domestic portal market, Zoom Internet recorded operating revenue of 28.8 billion KRW and operating profit of 6.7 billion KRW last year.