Naver Bolsters Shopping Business to Drive Profitability in the AI Era

Naver is looking to secure stable revenue streams by strengthening its online shopping business in the era of generative artificial intelligence (AI). Having historically grown through its search services, Naver is pursuing a strategy to boost performance by further expanding its shopping segment as the potential for change in the search market grows with AI technological advancements.

This transformation, if Naver's proposed merger with Dunamu is successful, indicates a potential shift in the company's core business focus from search and news to shopping and financial technology (fintech).

In late February, Naver introduced a shopping AI agent service to enhance user convenience, including personalized product recommendations.

Starting in June, it plans to discontinue the sale of underperforming products on its Smartstore platform. Alongside the growth of the Naver Plus Store, its limited-edition trading platform KREAM recorded its highest-ever revenue last year. KREAM's revenue increased by 14% year-on-year to 202.5 billion won, while its operating loss narrowed by 8.8% to 8.1 billion won.

Naver is also diversifying its shopping platforms by launching 'Knockit,' a new fashion platform targeting the 2030 demographic. An industry insider commented that Naver is making a full-fledged effort to create competitive shopping services that can rival Coupang.