Kakao edges Naver for third spot among S. Korea's most valuable firms

Kakao Corp. posted a market capitalization of 64.1 trillion won to take the third spot among South Korea's most valuable company following chip giants Samsung Electronics Co. and SK hynix Inc.

The upward march was due to robust earnings from its e-commerce, content, and advertising business, and optimism for this year's initial public offerings of its financial subsidiaries.

Naver Corp. slightly trails Kakao with a 63.6 trillion won market value as of Tuesday.

Kakao's shares increase 1.4 percent to reach a record high of 144,500 won on Tuesday, extending its winning streak to the seventh day.

Kakao's shares surged by nearly 7 percent this week following reports of its merger with its e-commerce subsidiary, Kakao Commerce.

The merger is aimed at better competing with its local e-commerce rivals, like Naver and Coupang.

Kakao rapidly expanded its presence in South Korea's tech sector with a wide range of platform services that now include messenger, e-commerce, mobility, content, and finance.

It enjoyed a boom during the pandemic.