Naver, Kakao and NCSoft Enjoying a Surge in Market Cap

The combined market cap of Naver, Kakao and NCSoft totaled 91,243.3 billion won on June 24 with investors continuing to buy the stocks predicted to continue to grow in the post-COVID-19 industrial structure characterized by the lack of physical contact. For reference, the combined market cap at the end of 2019 was 55.85 trillion won.

Especially, Kakao’s stock price has soared by no less than 84 percent since the beginning of this year and the company has overtaken Hyundai Motor Co., Hyundai Mobis and POSCO to come in eighth in the market cap rankings. Likewise, NCSoft, ranking 12th, is only 1.3 trillion won short of Hyundai Motor Co., which is in the 10th place.

This year, the three companies have led the South Korean stock market’s recovery by successfully increasing their operating profits in spite of COVID-19. NCSoft’s operating profit is estimated to increase 119.27 percent this year and the estimates are 102.37 percent and 39.29 percent for Kakao and Naver, respectively. This is in stark contrast to most manufacturers’ profit estimates.

The three companies’ rallies in the stock market and revaluation are expected to continue for a while with both enterprise and consumption activities substantially changing based on information and network platform technology in the wake of COVID-19.