Naver Choi Su-yeon "Deeply Responsible for Stock Price Slump... C-Commerce, Both Crisis and Opportunity" (Comprehensive)

Naver CEO Choi Soo-yeon expressed "deep responsibility" in response to shareholders' concerns over the sluggish stock performance.

On the morning of the 26th, Naver held its 25th regular shareholders' meeting at its second headquarters building 1784 in Seongnam, Gyeonggi Province.

At the meeting, shareholders voiced concerns about the rapidly changing market environment, including generative artificial intelligence (AI) and the rise of Chinese commerce companies. One individual shareholder remarked, "We no longer see innovation from Naver," and criticized, "Naver is failing to devise proper countermeasures while being encroached upon by YouTube." Another shareholder posed a sharp question, saying, "AI-based search services like ChatGPT are emerging, but Naver is not even properly reflecting the latest information," and asked, "What is the strategy to respond to the AI era?"

CEO Choi responded, "I deeply accept the shareholders' criticisms," adding, "We will integrate AI into our business-to-business (B2B) and commerce sectors to achieve results, and expand AI applications in search and other areas to provide the highest level of service to domestic users." Regarding competition with YouTube, she explained that they are responding with new services such as Clip and Chijijik.

Concerns were also raised about the rapid growth of Chinese commerce platforms AliExpress and Temu. CEO Choi said, "I see this as both a crisis and an opportunity," and added, "Our advertising department is working closely with AliExpress and Temu, and we are exploring various options including participation by overseas partners in advertising products, services, Smart Store, and Brand Store."

Regarding Naver Webtoon, which is preparing for a U.S. stock market listing this year, there were opinions that the value for Naver’s shareholders could be undermined. Naver Chief Financial Officer (CFO) Kim Nam-sun stated, "Webtoon is currently operating at a loss, and since advertising and commerce make up a large portion of Naver’s business, it is actually having a negative rather than positive effect on the stock price," but added, "Once Webtoon is listed, the marketing and branding effects will help increase recognition, and value that was not previously reflected in Naver’s stock price will be created."

Meanwhile, the agenda items presented at the shareholders' meeting included ▲approval of the financial statements for the 25th fiscal year (2023) ▲partial amendments to the articles of incorporation ▲appointment of outside directors as audit committee members ▲appointment of outside directors ▲appointment of audit committee members ▲approval of the director remuneration limit, totaling six items. All agenda items submitted at this shareholders' meeting were approved, including the new appointments of Byeon Jae-sang, advisor at Mirae Asset Life, and Lee Samuel, CEO of Indowers, as outside directors and audit committee members.