Citibank Securities Downgrades KakaoPay to 'Sell'... "Operating Loss Expected to Continue Until Next Year"

Kakao Pay Plummets Over 11%
Decline in Personal Spending, Intensified Competition
"Deficit Expected to Continue Until 2023"

[Asia Economy Reporter Hwang Yoon-joo] Citi Securities analyzed on the 7th that KakaoPay will continue to incur operating losses in 2023. Accordingly, they downgraded the investment rating to 'Sell.' KakaoPay's stock price plunged over 11%, hitting a 52-week low.

On the day, Citi Securities stated, "Due to the economic recession, people are reducing consumption, and the process of converting traffic into revenue is also delayed," adding, "The expectations of reaching the break-even point in Q3, a turnaround in Q4, and an operating profit margin of 5.8% in 2023 are unrealistic."

The basis is the anticipated intensification of market competition. Citi Securities explained, "Competition will intensify next year," and "Naver plans to start personal credit loans, and Apple Pay will enter the Korean market."

As of 10:28 AM, KakaoPay's stock price is trading at 41,650 KRW, down 11.10% (5,200 KRW) from the previous trading day. KakaoPay's stock price has been declining since September 29 (closing price), when it was 49,250 KRW, breaking below the 50,000 KRW level.

Meanwhile, on the 4th, foreign securities firms including Citi Securities also issued a 'Sell' report on Naver. As a result, Naver's stock price plummeted, breaking below the 170,000 KRW level and hitting a 52-week low.

This content was produced with the assistance of AI translation services.