Kakao founder becomes Korea’s second-richest stockholder amid COVID-19 era

Brian Kim (Kim Bum-soo), founder and chairman of South Korea’s biggest mobile messaging app operator Kakao Corp., has become the country’s second-richest person in terms of stock wealth, pushing Samsung Group heir Jay Y. Lee to third place. Kakao shares have soared in recent months, benefiting from the COVID-19 pandemic.

Kim, who currently holds a 14.51% stake in Kakao, saw the value of his stock assets top 9.84 trillion won ($8.3 billion) based on the share’s Aug. 14 closing price, more than double from 3.85 trillion won at the end of last year. This puts him ahead of Samsung Electronics Vice Chairman Lee, whose ranking dropped one spot to third place after his stock gained a mere 5.4% or 393 billion won in value, to 7.74 trillion won during the same period.

Samsung Group Chairman Lee Kun-hee remained on top with stock wealth worth 17.84 trillion won.

Kim’s riches have ballooned in line with the jump on Kakao shares, which surged 2.36 times to 362,500 won during the cited period, amid the coronavirus pandemic, which provided upward momentum for stocks related to non-face-to-face businesses as well as biotechnology, battery and internet sectors. With the infectious virus showing no signs of easing, prolonged social distancing has boosted "untact" platforms such as e-commerce, messaging, banking, content, shopping, and gaming.

Kakao, Korea’s biggest messaging app, is installed in 90% of the country's smartphones, and tens of millions of its users also use the app for other purposes such as gaming, shopping and even mobile payments.




BIOS, PHARMACEUTICALS: NOUVEAU RICHE

Executives of bio and pharmaceutical companies also saw a surge in stock wealth.

Celltrion Co. Chairman Seo Jung-jin (pictured below), who owns 22.1% of the company, snagged the fourth spot, up from the eighth previously, on the list of South Korea’s wealthiest businesspeople, with his stock assets rising by 2.76 trillion won, or 97%, to 5.62 trillion won. He also owns 35.5% of subsidiary Celltrion Healthcare Co, whose share price has nearly doubled so far this year to 104,200 won.


Seegene Inc., a diagnostic reagent maker, has been one of the hottest bio stocks of late, with its share price posting explosive growth of 622% this year. Chief Executive Chun Jong-yoon, with an 18% stake, expanded his stock wealth to 1.05 trillion won.

Bang Jun-hyuk, board chairman of Korea’s leading game developer Netmarble Corp., saw his wealth rise 57.5% to 3.16 trillion won, while NCSoft CEO Kim Taek-jin’s stock wealth increased 61.2% to 2.29 trillion won.

By contrast, some owners of big conglomerates suffered losses as market interest has moved away from traditional manufacturers to bios, pharmaceuticals and electric vehicles

Amorepacific Corp. Chairman Suh Kyung-bae dropped to sixth from third place, with the value of his stock assets down 21.5% to 4.07 trillion won.

Weighed down by SK Corp.’s weak performance, SK Group Chairman Chey Tae-won came in eighth, with his stock value falling 10.8% to 3.03 trillion won, while Chung Mong-joon,  the largest shareholder of shipbuilder Hyundai Heavy Industries, saw his stock wealth decrease 16.5% to 2.37 trillion won.