Korea's Naver to ramp up global IR activity as stock continues decline

South Korea’s online portal giant Naver Corp. is poised to hire an investor relations (IR) executive whose chief responsibility will be to communicate with overseas institutional investors, according to industry sources on Oct. 10.   

The online portal platform has begun the procedure to recruit an IR specialist who will report directly to the chief financial officer while reinforcing the IR department.           

The new IR executive will focus on relations with global institutional investors, who hold more than 50% of Naver’s total equities, sources said.   

Naver is said to be taking measures to stanch its plunging stock price, fueled by foreign investors’ selling spree.

Last week alone, foreigners sold a net 749.1 billion won ($521.0 million) of Naver shares, according to the Korea Exchange (KRX).

As selling orders poured out en masse from a small number of foreign accounts, the local bourse issued a one-day investor alert on Naver on Oct. 6.

The new IR executive will also emphasize the message of Naver’s global business expansion.

Last week, the online portal giant said it will take over US-based e-commerce marketplace Poshmark Inc. for some $1.6 billion to enter the North American e-commerce market. 

Naver also plans to launch an online cartoon content platform in the US through its subsidiary Naver Webtoon Corp.

Naver's stock surged during the COVID-19 pandemic, hitting its highest-ever price of 465,000 won on July 30, 2021. The growth tech stock then nosedived 57.45% amid interest rate hikes this year, setting a new record 52-week low of 160,000 won on Oct. 7.

Global financial groups lowered Naver stock's target price after the announcement of the Poshmark acquisition. Nomura Holdings Inc. cut the target from 340,000 won to 180,000 won, JPMorgan Chase & Co. shaved its target from 270,000 won to 220,000 won; and CLSA Ltd. lowered its own from 282,000 won to 190,000 won.

Write to Han-Gyeol Seon at always@hankyung.com
Jihyun Kim edited this article.