Krafton stock falls on acquisition of Japanese advertising company

Krafton CI

Shares in South Korea’s game developer Krafton Inc. fell by nearly 3 percent on Wednesday morning, following reports of its acquisition of ADK Group’s parent company.

Krafton shares were trading 2.77 percent lower at 351,500 won ($259) as of 10:23 a.m. on Wednesday.

The company announced earlier that it will acquire BCJ-31 Co., an affiliate of Bain Capital Japan, for 75 billion yen ($518 million).

“While short-term synergies may be limited, the deal could support future IP commercialization and integration of animation IP into games,” said Lee Jun-ho, an analyst at Hana Securities Co.

Shares of Kakaopay Corp., in the meantime, surged nearly 10 percent after its trading suspension was lifted.

The stock was trading at 101,000 won as of 10:25 a.m., up 9.78 percent from the previous session.

The fintech firm has gained more than 140 percent this month amid optimism over the government’s push for a won-pegged stablecoin.

Separately, shares of Inzisoft also gained ground, jumping 6.13 percent to 18,530 won as of 10:26 a.m.

The rally comes on speculation that the software firm could benefit from labor market reforms, including a proposed 4.5-day workweek.

New Labor Minister Nominee Kim Young-hoon on Wednesday backed both the shortened workweek and an extension of the retirement age, calling them “a path we must take.”

Shares of Krafton finished at 357,000 won, down 1.24 percent from the previous session. Kakaopay ended at 93,800 won while Inzisoft finished at 18,460 won.