Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Nearly 25 years of experience in analyzing hundreds of companies, especially in Asia. Deep expertise in the following sectors:
- Technology (E-commerce, SaaS, Internet)
- Consumer 
- Special Situations/Deep Value Plays
- Holdcos/Stubs
- Asian Unicorns/Private Companies

Korea/Asia, Events, IPOs

K Bank: The First Internet-Only Bank In Korea

More End of Lock-Up Shares (ESOP) For Kakao Bank, Krafton, and Lotte Rental in August

Explaining ESOP Margin Call Situation for Kakao Bank & Krafton

Viva Republica (Toss): To Become the First Decacorn in Korea

Kakao Bank: Headwinds in Transition to Endemic & Overhang from Stock Options Conversion into Equity

The Blockchain Delusion. A (Mostly) Bearish Investment Thesis.

Equity Bottom-Up

<ul>
<li>We are increasingly concerned about Kakao Bank which has been losing market share to other leading Internet banks in Korea (especially to Toss bank). </li>
<li>We are also concerned about the Kakao Bank approving greater amount of loans to customers with weak to moderate credit ratings who have been rejected loans from commercial banks. </li>
<li>Our base case valuation of Kakao Bank is market cap of 16.4 trillion won or price of 34,504 won per share, which represents 16.5% lower than the current share price.</li>
</ul>


We are increasingly concerned about Kakao Bank which has been losing market share to other leading Internet banks in Korea (especially to Toss bank). 
We are also concerned about the Kakao Bank approving greater amount of loans to customers with weak to moderate credit ratings who have been rejected loans from commercial banks. 
Our base case valuation of Kakao Bank is market cap of 16.4 trillion won or price of 34,504 won per share, which represents 16.5% lower than the current share price.


Kakao Bank: Market Share Losses to Other Internet Banks & More Loans to Less Creditworthy Customers

KakaoBank

Kakao Bank: Market Share Losses to Other Internet Banks & More Loans to Less Creditworthy Customers