After 'Slammer,' Net-related stocks diverge

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After 'Slammer,' Net-related stocks diverge

The worst-ever computer virus attack, which paralyzed Internet service across Korea over the weekend, sent local Internet-related stocks moving in different directions yesterday. Share prices of computer vaccine developers and online security companies soared on the Kosdaq market, while those of Internet portal sites, online shopping malls and game operators headed south. The price of Ahnlab Inc., an anti-virus vaccine maker, jumped by the daily limit of 12 percent to 17,000 won ($14.52). Online security service pro-viders such as Secure Soft, Inzen, Future System and Cybertek Holdings also shot up by the limit. But LG Home Shopping lost 1.8 percent to 70,200 won, and CJ Home Shopping slid 5 percent to 46,100 won. Internet portal operators, including Daum Communications, NHN and Internet Auction, also shed 2 percent to 3 percent. Equity experts say that the latest Internet disruptions are a reminder of how important computer security is and predicted that they would likely have a positive impact on security-related stocks. "This incident is not likely to boost the bottom lines of information security companies because their earnings have been declining since 2000," said Sung Jong-hwa, an analyst at Meritz Securities Co. "But it is expected to boost demand for online security in the long term." But some experts say that the benefits will be limited, citing past incidents whose impact did not last long. When Yahoo!, a U.S. Internet portal operator, came under hacker attacks in 2001, equity prices of local online security firms surged, only to sag back soon, analysts said. Park Jae-sun of Samsung Securities noted, "Last year, the Code Red virus hit 37,000 servers across Korea. But major local vaccine developers saw sales drop or remain stagnant." Despite falling online sales due to the Internet glitch, most local brokerage houses maintained their outlooks for Internet companies and online shopping malls on condition that there is no recurrence any time soon. by Kim Hyun-chul
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