[Featured Stock] KakaoPay IPO Price Drops Below 90,000 Won... Growth Stocks Weak Amid Interest Rate Hikes

[Asia Economy Reporter Kwon Jae-hee] Kakao Pay hit a new low as its stock price fell below the IPO price of 90,000 won in early trading on the 12th.

As of 10:07 a.m. on the same day, Kakao Pay was trading at 88,900 won on the Korea Exchange, down 2.74% from the previous trading day.

Since its listing on November 3 last year, Kakao Pay's stock price dipped below the IPO price during intraday trading on the 10th. However, it had not fallen below 90,000 won based on the closing price until now.

The sluggish stock performance of Kakao Pay is attributed to the recent big step (50bp hike) in U.S. benchmark interest rates, which has reduced the attractiveness of growth stocks, coupled with a large volume of locked-in shares being released into the market, causing the stock to hit new lows repeatedly.

At the same time, Kakao Bank was trading at 39,100 won, down 2.49% from the previous trading day, approaching its IPO price of 39,000 won. Kakao Bank is also at a new low since its listing on August 6 last year.