Korea Internet Pulse: July 2026: AI infrastructure emerging as new battleground; Krafton is our pre-2Q results top idea

研报英文原文证据摘录

Korea Internet Pulse: July 2026: AI infrastructure emerging as new battleground; Krafton is our pre-2Q results top idea

J P M O R G A N Asia Pacific Equity Research

16 July 2026

Korea Internet Pulse: July 2026

AI infrastructure emerging as new battleground; Krafton

is our pre-2Q results top idea

• Sector view. Entering 2Q earnings season, we expect broadly in-line results Internet and Telco

AC across the internet/gaming sector and continue to recommend a selective Stanley Yang

approach in the wake of the recent unwinding of the AI memory trade. Krafton (82-2) 758-5712

(OW) remains our top pre-results idea. We expect 2Q OP to beat the recently stanley.yang@jpmorgan.com

raised Consensus, supported by sustained PUBG IP monetization and a strong Benjamin Kim

hit of Subnautica 2. We believe upcoming new IP unveilings at Gamescom (82-2) 758-5580

should mark the start of a new IP launch cycle ahead of the multi-title ramp into benjamin.kim@jpmorgan.com

J.P. Morgan Securities (Far East) Limited, Seoul

2027E. We expect SHIFT UP (OW) to deliver in-line results on resilient core Branch

IP (NIKKE) monetization, but we would position early ahead of the next new

IP cycle. We expect Pearl Abyss (UW)’s 2Q results to land in the mid-to-low

end of management guidance as Crimson Desert sales momentum softens. On

platforms, Coupang (OW)’s 2Q revenue/EBITDA margin will likely print at

the high end of guidance on robust product commerce GMV recovery. Kakao

(N) should meet Street estimates on solid Talk Biz ad revenue growth, but we

continue to see lackluster AI agent traction as a share-price overhang. In K-pop,

we expect HYBE (OW) to beat 2Q earnings on strong concert revenue/MD

sales from the BTS world tour.

• Share performance. Over the past one month, SHIFT UP (+2% vs. KOSPI’s