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JONBUR Research · Initiation

You're reading an earlier report from Oct 18, 2026. See the latest report

Kakao Games · 293490 · Software

Kakao Games: Shares Rebound 30.8% Over Three Months While Losses Persist and Revenue Keeps Falling

Why this report

Start of coverage: one of the 300 largest companies, written once its financial statements were in.

Kakao Games closed at ₩10,270 on 2026-10-16, up 30.8% over three months but down 33.7% over one year, with trailing revenue of ₩384.3B and an operating loss of ₩67.0B. The model estimate of ₩2,815 per share sits well below the current price, while the stock trades at 0.8x book value.

Written Oct 18, 2026 · Data as of Oct 16, 2026 · 0 views

This is not financial advice. The report does not recommend buying or selling anything.

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Thesis

The data supports a story of a share price recovering ahead of any visible recovery in the numbers. The stock is up 8.0% in one month and 30.8% in three months, and recent news headlines point to a new title, Dokkaebi's World (also called The World of Goblin), ranking No. 1 in Google Play revenue and showing early signs of commercial success. Those are headlines only; the data does not contain sales figures for the game or any earnings guidance.

What the data does not support is a turnaround in profits so far. Revenue has fallen every year shown, operating losses widened from 2024 to 2025, and the trailing twelve months to H1 2026 show an operating margin of -17.4%. Foreign ownership slipped from 4.8% to 4.1% over 60 days, and foreigners were net sellers over the last 20 days while institutions were net buyers.

Business overview

Kakao Games is a KOSDAQ-listed software (games) company, founded on 2013-08-22 and listed on 2020-09-10. It is led by co-CEOs 김태환 and 이시우. It has 106,745,265 listed shares and a market capitalization of about ₩1.10T.

The history of the numbers shows a steep shrinkage. Revenue was ₩1.15T in 2022, ₩1.03T in 2023, ₩627.2B in 2024 and ₩465.0B in 2025. In 2021 the company reported net income of ₩528.7B and a return on equity of 25.2%, but it has reported net losses every year since.

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Model estimate of fair value

Bear
₩2,734
-76%
Base
₩2,815
-75%
Bull
₩3,137
-72%

Model estimate based on the assumptions shown. Not a price target and not a buy or sell signal.

Base case of the 5-year discounted cash flow model on the stock's Valuation tab (statements TTM to H1 2026; discount rate 7.5%). Bear and Bull move the main assumptions by fixed steps. See and change the assumptions

Filings and data used

Report history

  1. Oct 28, 2026Update noteBig price moveKakao Games: Shares Rise 16.4% in Five Days on Heavy Volume
  2. Oct 21, 2026Update noteModel fair value changeKakao Games: Model Fair Value Estimate Cut 47% to ₩1,478 per Share
  3. Oct 18, 2026InitiationStart of coverage (300 largest)Kakao Games: Shares Rebound 30.8% Over Three Months While Losses Persist and Revenue Keeps Falling

Built only from jonbur's own data: prices and investor flows, filed financial statements and filings, and news headlines. Disclosed (filed) data is labelled as such. Written by AI and may contain mistakes.

This is not financial advice. The report does not recommend buying or selling anything.

Source: KRX statistical information