Korea Exchange gave Kakao, which is listed on the second-tier stock market, a nod of approval for entry into the main bourse Monday, 40 days after the company applied for the change.

Stocks of Kakao showed a tepid response Tuesday upon the news released after Monday’s market closing. Kakao closed at 98.300 won ($85.40) Tuesday, down 1.11 percent from the previous day.

The operator of mobile messenger KakaoTalk and web portal Daum said in a disclosure it would begin the procedure of relisting on the main bourse after meeting with shareholders and cooperating with organizations related to the matter.

A firm should submit documents for public listing within six months after approval is granted.

Kakao ranked No. 2 on the Kosdaq market, with market capitalization worth some 6.6 trillion won as of Tuesday’s closing. It indicates the stock would become the 47th largest in the top-tier Kospi market and is highly likely to be included in the benchmark Kospi 200 index.

The move, however, has raised concern that Kakao’s delistment from Kosdaq might spark an exodus of Kosdaq powerhouses.

Kakao’s extraordinary general meeting on June 14 was in favor of relisting on the Kospi.

On May 25, Kakao handed in a set of documents for a listing eligibility review on the Kospi to the market operator KRX. As a Kosdaq-listed firm, Kakao was expected to go through an abridged screening for 20 days to verify its business stability. The KRX declined to comment on the reason it took 40 days for the approval.

Kakao, which has its headquarters on Jeju Island, logged 116.1 billion won of operating profit and 1.46 trillion won of sales in 2016, according to its regulatory filing.

By Son Ji-hyoung (consnow@heraldcorp.com)