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Photo = Kakao pay |
[Alpha Biz= Paul Lee] Kakao Pay shares tumbled more than 10% on June 27, immediately after resuming trading following a temporary suspension. The sharp decline reflects growing uncertainty over the implementation of a Korean won-based stablecoin, once seen as a key policy initiative under the new administration.
The stock closed at KRW 84,200, down 10.23%, after briefly dipping into the KRW 70,000 range during intraday trading. Kakao Pay had previously been considered a top beneficiary of President Lee Jae-myung’s policy agenda, with the introduction of a won-based stablecoin being one of his core campaign pledges.
Buoyed by these expectations, Kakao Pay shares surged approximately 150% between June 4 and 25. However, concerns over excessive speculation prompted the Korea Exchange to designate the stock as an "Investment Warning Stock" on June 24, triggering a one-day suspension. It was then reclassified as an "Investment Risk Stock" on June 26, resulting in another trading halt. June 27 marked the second resumption of trading.
Investor sentiment deteriorated further after the Bank of Korea raised alarms about the risks of stablecoins in its 2025 H1 Financial Stability Report, published June 25. The central bank warned that stablecoins could pose “potential risks to financial stability and the broader economy,” highlighting dangers such as depegging events and mass redemption-driven ‘coin runs’ if confidence in their reserves and value mechanisms were undermined.
The sell-off in Korea echoes similar trends in overseas markets. In the U.S., Circle, a leading stablecoin company, saw its share price fall 15.49% on June 24, followed by another 10.79% decline on June 25, amid rising regulatory concerns and shifting investor sentiment.
As a result, analysts are now urging caution, noting that policy clarity and regulatory structure will be essential before stablecoin-linked fintech equities can regain momentum.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
