[Featured Stock] DearU, Limited Possibility of Artist Departure... "Stock Price Decline is Excessive"

DearU rebounded. Although it plummeted the previous day due to concerns over the fandom platform Kakao Entertainment (hereinafter Kakao Entertainment) is preparing, the impact is interpreted to be limited.

As of 2:03 PM on the 7th, DearU was trading at 32,250 won, up 2,850 won (9.69%) from the previous trading day. The day before, DearU plunged 15.4% following news that Kakao Entertainment was preparing to launch a new fandom platform called Berriz.

Jiin Hae, a researcher at Shinhan Investment Corp., said, "We believe the possibility of existing SM IPs active on DearU migrating to the new platform is limited," adding, "Regarding SM IPs specifically, private messaging services are strictly contracted with DearU, while other community, content, and commerce services have had contracts with Weverse under HYBE for several years."

He stated, "Kakao Entertainment has not precisely disclosed which IPs they will focus on or what kind of fandom services they will launch," emphasizing, "It is practically impossible to offer services similar to Bubble or Weverse while utilizing SM IPs, so the sharp drop the previous day was very excessive."

He added, "Everyone dreams of global expansion of fandom platforms, so I also think this proves it is a definite growth industry."