What if you bought KakaoBank on its IPO day?
On August 6, 2021, KakaoBank's first trading day, amid 'new-era banking champion' euphoria it closed limit-up (69,800 KRW). What would 10 million KRW invested at that close have become? With real data, we honestly examine a case where the hottest day became the most expensive entry — and one that has not yet recovered.
⚠️ Know the risk first
This is a worst-timing case (first-day close at the peak), where the drawdown and non-recovery are the main point. An overvaluation debate — an offer-price PBR of about 7.3x, more than 10 times the average of domestic financial holding companies — existed from day one, and the stock has since declined long-term and has not yet recovered the first-day close. Recovery cannot be asserted; only 'not recovered yet' is a fact.
What happened that day
On August 6, 2021, KakaoBank closed limit-up on its first trading day (69,800 KRW), reaching a market cap of about 33.16 trillion KRW to become the largest financial stock. It was the peak of 'new-era banking champion' euphoria, yet an overvaluation debate over the offer price (PBR around 7.3x) also clearly existed. That first-day close became the highest point on the subsequent price path.
Why this date
2021-08-06 was KakaoBank's first trading day. The first-day close (69,800 KRW, limit-up) symbolizes the most euphoric timing, and at that close its 33.16 trillion KRW cap made it the top financial stock. We use it as the assumed purchase date to show the real outcome of buying at the worst timing.
Investment conditions
Asset · KakaoBank (323410.KS) · lump-sum of 10 million KRW
Method · Lump-sum (all at once)
Period · 2021-08-06 ~ 2026-07-01
Amount · $7,407
As of · 2026-07-01
Before you see the result — what would you do?
Limit-up on IPO day, when everyone called it the 'new-era champion' — if you got this stock at that moment?
Key metrics
These results do not reflect taxes. Based on historical data.
Buy and final prices are shown in the asset's local currency (US & crypto $, Japan ¥, Korea ₩). Total invested and final value are in Korean won (₩).
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-82.8%
Largest drop from peak
Longest loss period
59months
Months in loss: 59
Recovery period
0months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $7,407 → Final value $2,307 (-68.8%), Maximum drawdown (MDD) -82.8%
Why this period and asset
August 6, 2021 was KakaoBank's first trading day. It opened at 53,700 KRW (+38% over the 39,000 KRW offer price) and closed limit-up at 69,800 KRW; at that close its market cap of about 33.16 trillion KRW passed KB Financial and Shinhan to become the largest financial stock by market cap. Both Korea (0.50%) and the U.S. (0.00-0.25%) were at ultra-low rates, a strong risk-on environment. This page assumes a purchase at that first-day close.
Interpreting the result
The key here is 'what happened when you bought at the highest price at the moment of the best news.' Check both the cumulative return and the maximum drawdown below. That first-day close was the highest point on the subsequent price path, and as of 2026 the stock has not recovered it. Note too that an 'overvaluation debate' already existed from day one.
Caveats & limits
This site includes cases that recovered after a long hold, but this is not one of them — you should weigh 'everything recovers eventually does not apply to every asset' just as heavily as the cases that did recover. Whether it recovers in the future is unknown; the only fact we can confirm is that it has not recovered yet. Figures use adjusted close and exclude trading fees and taxes — pre-tax. This piece does not judge a company as good or bad, and does not recommend buying or selling any security.
Market conditions on the purchase date
Macro indicators as of the assumed purchase date. Faded values are confirmed by a single source only and are for reference (not cross-checked by two sources).
US policy rate
0.00~0.25%
참고용(미 기준금리). 코로나 제로금리, 첫 인상은 2022-03. 한·미 모두 초저금리 유동성 장세.
Korea base rate
0.50
%. 코로나 초저금리. 인상(0.75%)은 3주 뒤 2021-08-26 금통위.
CPI (YoY)
2.60
% YoY. 2021년 7월 소비자물가, 매수일 기준 최신 발표치. 근원 +1.7%.
VIX (fear index)
Reference · single source16.15
단일 피드로만 확인(2출처 교차 미충족). 낮은 변동성=위험선호 강한 시장을 정성적으로만 참고.
Dollar index (DXY)
Reference · single source92.80
단일 피드(2출처 교차 미충족). 같은 날 강한 7월 미 고용에 달러 강세로 마감(방향만 정합).
Headlines from that day
Actual headlines reported at the time. Tap a title to open the source.
- 카카오뱅크, 상장 첫날 '따'는 실패 '상'은 성공…금융주 1위 등극
뉴스토마토 · 2021-08-06
- 상장 첫날 금융대장주 등극한 카카오뱅크
서울신문 · 2021-08-06
- IPO: Shares of South Korea's Kakao Bank jump nearly 80% on trading debut
CNBC · 2021-08-06
- 논란의 카카오뱅크 공모가, 은행 PBR 끌어올릴까
디지털타임스 · 2021-08
The mood back then
In early August 2021, the market strongly favored risk assets on top of the liquidity unleashed after COVID. The Bank of Korea base rate was 0.50% and the U.S. federal funds rate 0.00-0.25% — both at ultra-low levels — and July CPI was rising at +2.6% year over year, yet rate hikes had not begun (Korea's first hike to 0.75% came only three weeks later, on August 26). The stock market's volatility index (VIX) stayed low, suggesting a strong overall risk appetite. KakaoBank listed in exactly this mood. On its first day it opened at 53,700 KRW (+38% over the 39,000 KRW offer price) and closed limit-up at 69,800 KRW; at that close, its market cap of about 33.16 trillion KRW passed KB Financial and Shinhan to become the largest financial stock by market cap. This page's calculation assumes a purchase at that first-day close (69,800 KRW).
What people were thinking at the time
At the time, euphoria and controversy coexisted in the headlines. Domestic media led with the 'new-era banking champion' frame, such as 'KakaoBank fails the double-limit but succeeds at limit-up, becomes No.1 financial stock' (Newstomato) and 'KakaoBank becomes top financial stock on its debut day' (Seoul Shinmun), and CNBC also splashed the roughly 80% first-day surge with 'Shares of South Korea's Kakao Bank jump nearly 80% on trading debut.' But overvaluation headlines appeared at the same time, such as 'Will KakaoBank's controversial offer price lift bank PBRs?' (Digital Times). The offer-price PBR was about 7.3x, more than 10 times the roughly 0.5x average of domestic financial holding companies, and brokerage opinions were sharply split. Yuanta pointed to the valuation, arguing 'it is a bank before it is a platform, and long-term value converges to ROE,' while others like SK Securities considered the 'highest-ever valuation for a domestic bank stock' justified by growth, untact finance, and a platform premium. In short, 'euphoria' and 'too expensive' coexisted from day one.
What actually happened afterward
The first-day close of 69,800 KRW turned out to be the highest region on the subsequent price path. After that limit-up debut, the price declined long-term and, as of 2026, has not recovered that first-day close. In this case, the 'hottest day' was also the 'most expensive point.' Whether it recovers in the future is unknown — the only fact confirmable here is that it has not yet recovered the first-day close since listing. For the exact maximum drawdown, loss period, and return, see the calculation figures above.
What this record shows
This page shows a case of buying at the highest price at the moment the best news was pouring in — 'buying at limit-up on the IPO day.' This site includes cases that recovered after a long hold, but the KakaoBank first-day purchase is not one of them — you should weigh 'everything recovers eventually does not apply to every asset' just as heavily as the cases that did recover. Also, the fact that an 'overvaluation debate' clearly existed from day one shows that the size of the euphoria is not the size of the safety. This piece does not judge a company as good or bad; it only organizes 'what happened when you bought at the most euphoric timing' as a fact of the price path. It does not address where the price goes next, and does not recommend buying or selling any security.
Event fact sources
- Newstomato 2021-08-06 (first-day limit-up, 33.16tn cap, No.1 financial stock): https://www.newstomato.com/ReadNews.aspx?no=1065168
- Seoul Shinmun 2021-08-06 (became top financial stock on debut): https://www.seoul.co.kr/news/newsView.php?id=20210806500110
- CNBC 2021-08-06 (jumped nearly 80% on debut): https://www.cnbc.com/2021/08/06/ipo-shares-of-south-koreas-kakao-bank-surge-more-than-60percent-in-debut.html
Requested date vs actual trading date
2021-08-06 was the first trading day (Friday). The requested date and the actual fill date are the same.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-08-03
- Effective trading date: 2026-07-01
- Price basis: Adjusted close (reflects dividends and stock splits)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
Why use the IPO day (2021-08-06) as the purchase date?
The first-day close (69,800 KRW, limit-up) symbolizes the most euphoric timing. That day KakaoBank became the largest financial stock by market cap. We chose it to honestly show 'what if you bought on the hottest day.'
Has it recovered now?
Not yet. Assuming a purchase at the first-day close, it has remained in a large loss for five years. See the exact return, maximum drawdown, and loss period in the calculation above. Whether it recovers in the future is unknown, and this page does not predict it.
Were there concerns it was expensive from day one?
Yes. The offer price implied a PBR of about 7.3x, more than 10 times the roughly 0.5x average of domestic financial holding companies — an overvaluation debate existed around the listing, and brokerage opinions were sharply split. It shows the size of the euphoria is not the size of the safety.
Related scenarios
📋 Results are based on historical data; past returns do not guarantee future returns.
📋 This service is provided for educational purposes to help you understand investing, not as investment advice.