1. Kakao’s Treasury Stock Disposal: What Happened?

On August 13, 2025, Kakao announced the disposal of 9,000 treasury shares, equivalent to $600,000. This decision is for the purpose of granting RSUs (Restricted Stock Units) awarded in 2021 and will be handled through Hana Financial Investment.

2. Why the Disposal? And What About Fundamentals?

The primary purpose of this treasury stock disposal is to provide RSUs for employee compensation and motivation. Kakao’s 2025 first-half results showed continued growth in the platform sector, while the content sector experienced declining sales due to increased competition. However, overall operating profit increased, showing improving profitability. Investments in AI and new technologies, along with strengthened ESG management, are positive factors, but sluggish content sector performance, frequent business restructuring, and legal risks remain potential concerns.

3. Impact on Stock Price?

The volume of treasury stock disposal is very small compared to the total number of outstanding shares, thus limiting the short-term impact on the stock price. However, the positive aspects include enhanced employee motivation contributing to long-term growth and short-term liquidity gains. More importantly, a comprehensive analysis of Kakao’s fundamentals, market environment, and macroeconomic variables is crucial, rather than focusing solely on the stock disposal itself.

4. What Should Investors Do?

Instead of reacting to short-term price fluctuations, investors should focus on Kakao’s long-term growth drivers and efforts to improve fundamentals. Pay close attention to strengthening platform competitiveness, improving content profitability, securing new business growth drivers, managing legal risks, and strategies to address macroeconomic volatility.