"Careful Review of Impact Linked to Domestic Platforms"
"Continued R&D Investment... Increased Competitiveness through Technology Internalization"
Naver anticipates intensified competition in artificial intelligence (AI) technology and among global big tech companies following the inauguration of the Trump administration in the United States. In response, the company aims to continue internalizing technology and leverage it to enhance the competitiveness of its core services.
Choi Soo-yeon, CEO of Naver, held a press conference immediately after the Team Naver integrated conference 'DAN 24' held at COEX in Gangnam-gu, Seoul on the 11th.
Naver CEO Choi Soo-yeon is answering reporters' questions at a press conference held immediately after the Team Naver integrated conference 'DAN 24' at COEX in Gangnam-gu, Seoul on the 11th. Photo by Naver
First, she forecasted that AI competition would intensify with the launch of the Trump administration. CEO Choi said, "AI will move in a deregulated direction, and mergers and acquisitions (M&A) among big tech companies will become more active," adding, "We are closely monitoring what impact this will have if it coincides with domestic platform regulations that are contrary to this."
Regarding domestic platform regulations, she expressed a cautious stance, saying, "I deeply agree with the discussions about the influence and responsibility of platforms," and "In all decision-making, we prioritize the social impact and the effects on small and medium-sized merchants."
In this context, Naver expressed its determination to continue investing in research and development (R&D) to internalize AI technology. CEO Choi emphasized, "We have been considering how to provide high-quality services at affordable prices to the people who make up the platform ecosystem," and "As a company responsible for data and content, we have a deeply rooted belief that technology internalization is more important than immediate return on investment (ROI)."
The internalized technology will be applied across all services. AI core technologies will be embedded in key services with tens of millions of users, such as search, maps, and shopping. Through this, Naver aims to strengthen the platform’s inherent competitiveness and connect it to monetization. Yoon Jong-ho, head of Naver’s advertising product division, explained, "Investing in AI increases costs, but it also increases positive user responses and advertisers’ effectiveness," adding, "Ultimately, this leads to an increase in Naver’s revenue."
Cost efficiency will also be pursued through proprietary technology. Sung Nak-ho, head of hyperscale AI technology at Naver Cloud, said, "Applying our own AI models to services reduces operating costs," and "This is why we create and internalize AI ourselves."
The company plans to expand its proprietary technology and service operation know-how globally. CEO Choi said, "As a result of considering technology as part of our competitiveness, we have become a company that has accumulated a rare amount of technological assets worldwide," and "We expect to be able to operate in third countries beyond the US and China." She particularly anticipates creating meaningful cases in Saudi Arabia and Japan.
Meanwhile, regarding providing Naver content to competitor OpenAI, Naver stated it will leave the choice to creators. OpenAI uses Naver blog content and others in 'ChatGPT Search,' which adds search functionality. Lee Il-gu, head of Naver’s content service division, said, "There is no separate contract between OpenAI and our company," and "Creators decide whether to open their content externally on a content-by-content basis."
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