Naver headquarters in Seongnam, Gyeonggi Province (Yonhap)
Naver headquarters in Seongnam, Gyeonggi Province (Yonhap)

Naver CEO Choi Soo-yeon said Friday the company sees no impact on its AI business, even after it failed to advance to the second phase of the government-led sovereign AI foundation model project.

Speaking during an earnings call earlier in the day, Choi emphasized that the decision was the government’s to make and that the company respects the outcome.

“We fully respect and humbly accept the government’s judgment regarding the sovereign AI foundation model project,” she said. “However, we do not believe the result reflects our technological competitiveness.”

Choi said the company would continue to strengthen its research and development and reinforce its position in AI leadership, regardless of the government’s decision.

She also said the outcome would not significantly affect the company’s broader strategy or profitability. “Our strategy for the sovereign AI market and business-to-business revenue is unlikely to be notably affected,” she added.

Choi pointed to ongoing digital transformation projects in Saudi Arabia, Thailand and Japan as examples of how Naver is expanding its footprint beyond Korea. These initiatives, she noted, build on the company’s domestic experience and are expected to create further opportunities.

“In the long run, we aim to expand our footprint in sovereign AI and accelerate our global reach,” she said.

Earlier in the day, the company reported its highest-ever annual results. Consolidated revenue for 2025 rose 12.1 percent on-year to 12.04 trillion won ($8.18 billion), while operating profit increased 11.6 percent to 2.21 trillion won.

Net profit, however, slipped 5.8 percent from a year earlier to 1.8 trillion won.

The results were broadly in line with market expectations. Financial data provider FnGuide had forecast full-year revenue of 12.08 trillion won, and an operating profit of 2.2 trillion won.

Across its key business areas, Naver posted steady growth. Revenue from its search platform rose 5.6 percent to 4.17 trillion won and commerce revenue jumped 26.2 percent to 3.69 trillion won.

Smart Store, the company’s e-commerce platform, recorded a 10 percent increase in transaction volume.

Fintech revenue climbed 12.1 percent to 1.69 trillion won, while content revenue rose 5.7 percent to 1.9 trillion won.

Enterprise services brought in 587.8 billion won, up 4.3 percent from 2024. Growth was led by GPU-as-a-service sales and overseas projects such as a super app initiative in Saudi Arabia and digital twin platforms.

For the fourth quarter, Naver posted an operating profit of 610.6 billion won, up 12.7 percent year-on-year. Quarterly revenue reached 3.20 trillion won, and net profit came to 164.6 billion won.

Looking ahead, the company said it plans to strengthen its commerce operations by expanding its N Delivery infrastructure, advancing AI-powered personalization and enhancing its membership benefits offering.


yeeun@heraldcorp.com