[Exclusive] Samsung Electronics and Naver Discuss 'Ultra-Cooperation' to Target Southeast Asia

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[Asia Economy reporters Han Jinju and Gu Chae-eun] Samsung Electronics and Naver have joined forces to target the Southeast Asian market. The plan is to preload Naver Webtoon services on Galaxy smartphones released in the Southeast Asian region. This is drawing industry attention as it marks the first global collaboration between the world's No.1 smartphone manufacturer and Korea's No.1 content company.

According to industry sources on the 8th, Samsung Electronics and Naver are discussing ways to preload webtoon applications on smartphones. It is known that Samsung Electronics proposed this idea to Naver earlier this year. An industry insider explained, "From Samsung Electronics' perspective, webtoon content can be used as a marketing point, and from Naver's perspective, it is an opportunity to expand touchpoints with global users."

Top Companies Crossing Platforms for Ultra-Collaboration

While Samsung Electronics has previously collaborated with domestic game companies such as Nexon and Netmarble for mobile game content to highlight smartphone performance, this is the first time for webtoon collaboration. Unlike the domestic market, where flagship smartphones are dominant, the Southeast Asian market has a high proportion of mid-to-low-end smartphones, making webtoons more suitable than games. Samsung, which has higher brand recognition compared to Chinese manufacturers like Oppo and Xiaomi, also intends to differentiate its marketing by utilizing webtoon content.

For Naver, aiming to solidify its position as the global No.1 webtoon platform, this is an enticing proposal. Naver has been expanding its webtoon services in North America, Japan, and China, and has invested to pioneer markets in Southeast Asia and Europe. Naver Webtoon currently has 16.8 million and 27.7 million subscribers in Thailand and Indonesia, respectively. To establish itself as the "Disney of Asia," it is essential to firmly establish the webtoon platform in Southeast Asia. Notably, Southeast Asia is a region where Naver's subsidiary, Line, has already entered early as a mobile messenger and expanded into fintech and O2O services, providing a solid foundation.

Why Southeast Asia?

Naver Webtoon Global Website

Southeast Asia is an important region for both Samsung Electronics and Naver. The Southeast Asian market is rapidly growing across various industries and has a young, dynamic population. Preferences for Korean electronics as well as K-content are high. Compared to North America and Europe, the barriers to entry for products and content are lower. Moreover, webtoon content is gaining popularity among the younger generation, creating favorable conditions for synergy.

According to market research firm Counterpoint Research, Samsung Electronics held an 18.9% share of the Southeast Asian smartphone market in the first quarter, ranking first. Chinese manufacturers such as Oppo (18.7%) and Xiaomi (14.8%) are aggressively chasing with competitive pricing. As the purchasing power of Southeast Asian consumers increases day by day, they tend to upgrade specifications and prices when repurchasing smartphones, creating favorable conditions for Samsung Electronics. This is why Samsung needs another marketing point beyond brand image and product quality.

The "ultra-collaboration" between Samsung Electronics and Naver aligns with the government's "platform-device collaboration overseas expansion" model, which promotes the growth of online video services (OTT). Last month, the government announced the "Digital Media Ecosystem Development Plan," stating that to nurture a "Korean version of Netflix," it would have native OTT services like Watcha Play and Wavve recommended (curated) on Samsung Electronics' Galaxy smartphones. The aim is to use Samsung Electronics' globally leading smartphone market share as a foothold to open distribution channels so that smartphone users worldwide can access native OTT services such as Watcha Play and Wavve.