Kakao Corp. and Naver Corp. plummeted, set for the biggest declines in years, after South Korean lawmakers warned the nation’s internet giants against abusing their market dominance in the pursuit of profits.
Kakao, which runs South Korea’s biggest messaging and social media service, plunged more than 11%, on track for its worst drop since 2012. Naver, which runs the messaging platform Line as well as a host of apps, slid more than 8%, poised for its biggest loss in six years.
Kakao should not follow the path of the country’s sprawling chaebol conglomerates in ignoring fair competition, Song Young-gil, head of the ruling Democratic Party, told a forum hosted by fellow lawmakers, Yonhap reported. A separate report from DongA Ilbo said the ruling party has decided to focus on platform operators in its annual assembly audit starting Oct. 1.