Naver-Toss rivalry deepens as both sides trade accusations
The headquarters of Toss in Seoul, left, and Naver in Seongnam, Gyeonggi Province / Yonhap
The rivalry between Korean tech giants Toss and Naver has escalated into a public dispute, with both sides trading accusations of unfair business practices, drawing scrutiny from lawmakers, industry officials said Tuesday.
The latest dispute centers on Naver's exclusion of Toss Place's point-of-sale (POS) system from a service that integrates merchants' transaction data with Naver's search and map services. The integration allows users to check information such as a restaurant's popular menu items and peak hours.
Naver has integrated its platform with 15 other POS providers but has excluded Toss Place, according to Rep. Song Eon-seog of the main opposition People Power Party.
Toss Place CEO Choi Jae-ho said the company had sought integration for two years but had received no clear explanation of the criteria for inclusion. Naver denied discriminating against Toss Place, saying it was gradually expanding integrations based on objective criteria.
During a parliamentary audit Monday, the Fair Trade Commission said it would review both sides' claims to determine whether any unfair discrimination had occurred.
In a separate dispute, Naver has accused Toss of manipulating its search rankings.
Last month, Naver asked police to investigate Toss's reward-based advertising practices, alleging that they distorted Naver's search rankings. Toss' ads offer users points for completing tasks such as searching for specific products, viewing product details or submitting screenshots of search results.
Viva Republica CEO Lee Seung-gun, left, and Naver CEO Choi Soo-yeon / Courtesy of Viva Republica, Naver
Toss has since removed Naver from its reward-based advertising program, but Naver has maintained that it will not withdraw its request for a police investigation.
The clashes come amid an intensifying rivalry between Naver and Toss, both major players in Korea's online payments market, as they seek to expand their presence in offline payments. Transaction data collected at physical stores is increasingly seen as a key competitive asset for digital platforms.
Naver has leveraged its strengths in search and content to expand into shopping and financial services. It now aims to extend its reach from online searches and bookings to in-store payments through POS terminals, using the resulting data to enhance its AI services.
Toss, which has expanded from money transfers into banking and securities, is pursuing a similar data-driven "super-app" strategy. It aims to connect its financial user base with everyday activities, including payments, shopping and advertising.
The rivalry came into sharp focus at a barbecue restaurant in Seoul in June, where Nvidia CEO Jensen Huang met with the heads of major Korean conglomerates.
The restaurant had previously used Toss payment terminals but switched to Naver's devices at Naver's request just a day before the gathering. Lee Hae-jin, Naver's founder and board chair, drew attention by paying with the company's facial recognition technology at the event.
"At its core, this is a battle for market dominance," an industry official said. "Both companies are seeking to control more of the consumer journey, from online searches to offline payments, with data becoming an increasingly valuable asset."