Kakaopay Sinks 17% as Authorities Flag Risks Tied to Stablecoin

Shares of South Korea’s Kakaopay Corp., which have recently surged on investor excitement over its possible stablecoin foray, dropped as much as 17% as trading resumed after a one-day halt.

The Korea Exchange suspended Thursday trading for the shares, saying the stock has been designated as an “investment risk” that would warrant the halt. The stock was also suspended on Tuesday, following a roughly 50% ascent in the previous two sessions.