NAVER (035420)

NAVER, established in 1999, is a leading South Korean internet company that provides various online services based on its search engine 'Naver'. Its main business areas include Search Platform, Commerce, FinTech, Content, and AI & Cloud. Key products and services include Naver Search, which holds the top market share in the domestic search market; Naver Shopping, including Smartstore and Brandstore; the simple payment service Naver Pay; the global webtoon platform Naver Webtoon; and the generative AI 'HyperCLOVA X' and Naver Cloud Platform. As of 2025, the revenue breakdown was Search Platform at 34.6% (KRW 4.1689 trillion), Commerce at 30.6% (KRW 3.6884 trillion), FinTech at 14.1% (KRW 1.6907 trillion), Content at 15.8% (KRW 1.8992 trillion), and Enterprise (Cloud) at 4.9% (KRW 587.8 billion). Naver maintains a dominant position in the domestic search and advertising markets and holds the top spot in the domestic e-commerce market with a 22% share. Its main customers are diverse, including general users, small and medium-sized enterprises (SMEs), advertisers, and content creators. NAVER's core competitiveness lies in its unique position in the domestic search and advertising markets and its strong platform competitiveness. In particular, its AI and cloud technology, centered around HyperCLOVA X, is applied across various services, such as the AI-based ad optimization tool 'ADVoost' and 'AI Briefing,' enhancing efficiency. Furthermore, its leading position in the global webtoon and web novel IP (intellectual property) market, spearheaded by Naver Webtoon, is a significant strength. Its unique platform ecosystem, which connects search, commerce, and payment infrastructure into a single flow, provides users with a differentiated experience. NAVER has recorded consistent revenue growth in recent years. Revenue increased from KRW 8.2201 trillion in 2022 to KRW 12.0350 trillion in 2025, showing growth rates of 17.6% year-over-year in 2023, 11.0% in 2024, and 12.1% in 2025. Operating income also continuously increased from KRW 1.3047 trillion in 2022 to KRW 2.2081 trillion in 2025, achieving a high growth rate of 32.9% year-over-year in 2024. The operating margin has remained robust, at 15.87% in 2022, 15.39% in 2023, 18.43% in 2024, and 18.35% in 2025. Looking at recent quarterly results, in Q1 2025, revenue was KRW 2.7868 trillion and operating income was KRW 505.3 billion. In Q4 2025, revenue reached KRW 8.8970 trillion and operating income was KRW 1.6375 trillion. NAVER's financial health is assessed as sound. The debt-to-equity ratio has remained stable at 44.56% in 2022, 47.45% in 2023, 41.36% in 2024, and 41.90% in 2025. The current ratio was 117.50% in 2022, 111.46% in 2023, 153.88% in 2024, and 136.28% in 2025, indicating sufficient short-term debt repayment capability. ROE (Return on Equity) was recorded at 2.87% in 2022, 4.06% in 2023, 7.16% in 2024, and 6.28% in 2025. In line with the IT platform industry trend, which is being reshaped around AI and cloud, NAVER is actively integrating AI technology into its core businesses. It aims to create new revenue streams by enhancing search services through 'AI Briefing,' strengthening commerce competitiveness with 'AI Shopping Agent,' and introducing generative AI advertising models. Furthermore, it is expected to accelerate global business expansion, focusing on C2C platforms such as Poshmark and Wallapop, thereby securing mid-to-long-term growth drivers.