Investors dumped Naver shares on Monday after the announcement that second-ranked portal Daum and mobile messaging service Kakao are to merge, posing a threat to the dominance of Korea's largest portal.
Naver shares plunged 3.99 percent to W745,000 (US$1=W1,024), which cost the company over W1 trillion in market value and demoted it from seventh to eight place on the stock market.
Websites that specialize over-the-counter stocks were inundated with requests to buy Kakao shares. But Kakao shares actually fell 1.28 percent to between W115,500 to W116,000.
Many investors were disappointed that Kakao will not be listed independently on the junior Kosdaq but only as part of the merged entity.