[Market Focus] Kakao Surpasses 70,000 Won... Rises Over 4% on AI Policy Expectations

On June 24, Kakao surpassed the 70,000 won mark for the first time in approximately two years and four months. This is interpreted as a reflection of expectations that the Lee Jaemyung administration's artificial intelligence (AI) policies will benefit the company.

As of 1:35 p.m. on this day, Kakao was trading at 70,700 won, up 3,100 won (4.59%) from the previous trading day.

Kakao affiliates are also surging on expectations of government support. Kakao Games was trading at 23,500 won, up 5,400 won (29.83%) from the previous session, while Kakao Bank was up 6,750 won (21.77%) at 37,750 won. Kakao Pay is currently suspended from trading after soaring more than 40% over the past two days.

The Lee Jaemyung administration has announced plans to invest 100 trillion won in the AI industry and transform Korea into one of the world's top three AI powerhouses.

Accordingly, Ha Jungwoo, an AI expert formerly of Naver Cloud, was appointed as the first Chief of the newly established Presidential Office's AI Future Planning Office on June 16. As an AI expert from the industrial sector has also been nominated as Minister of Science and ICT, there are expectations that the Lee Jaemyung administration will pursue 'industry-oriented' AI policies going forward.