Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Naver seeks to win Saudi megaprojects
Majed al-Hogail, the minister of Municipal and Rural Affairs and Housing for Saudi Arabia, shake hands with the Ambidex robot arm at the Naver 1784 headquarters in Seongnam Gyeonggi Province, Nov. 29, 2022. Courtesy of Naver.
By Kim Hyun-bin
IT firm plans to establish corporate office in oil-rich kingdom
By Kim Hyun-bin
Naver has its sights on Saudi Arabia where megaprojects could utilize the emerging technologies and expertise of the Korean tech giant, according to industry officials, Monday.
The IT firm is considering establishing a corporate office in Saudi Arabia to expedite communication and procedures with the Saudi Arabian government. This move is in response to the memorandum of understanding (MOU), which was signed by Naver and its affiliates to participate in Saudi Arabia's digital transformation project.
The Korean government has also shown strong commitment to push forward with a public-private support unit to bid for projects in the Kingdom while Naver is envisioning plans to seize business opportunities through alignment with the government's moves.
For Naver, Saudi Arabia could be an excellent opportunity to increase its share of overseas revenue ― one of the key promises made by Choi Soo-yeon, the CEO of Naver, upon taking office.
According to the company, the possibility of establishing a local subsidiary in Saudi Arabia is increasing.
“A local corporation has been considered, and an MOU has been signed as part of the initial steps for future collaboration. Establishing a corporate entity would streamline procedures, although it's not yet a definite decision,” a Naver official said.
“While the MOU signifies our commitment, having a corporate office in place would facilitate communication, administrative tasks and time zone coordination. Understanding the specific procedures in Saudi Arabia, such as documentation requirements.”
Sheikh Saud Sultan bin Mohammed Al Qasimi of Sharjah Emirates shakes hands with a robot at Naver's 1784 headquarters in Seongnam, Gyeonggi Province, June 12. Courtesy of Naver
The establishment of a local office by Naver in Saudi Arabia would serve as a stepping stone for expansion into the Middle East. Recently, high-level representatives from the Sharjah Royal Family, such as Sheikh Saud Sultan bin Mohammed Al Qasimi, showed great interest in Naver's technological capabilities by visiting the company's headquarters, Naver 1784, in Bundang, Gyeonggi Province.
The visit came as Naver reached out to Middle Eastern countries to export high-tech products such as robots, artificial intelligence (AI), autonomous driving, cloud computing, digital twins and 5G communication as part of the Korean company's overseas expansion strategies.
Naver has various overseas corporate offices in countries such as the U.S., Japan, China, France, Vietnam, India and Singapore. However, the company is yet to enter the Middle East.
Naver is considering a local subsidiary after being selected as a partner for Saudi Arabia's digital transformation project. Last year, a Saudi Arabian delegation led by the country's minister of municipal, rural affairs and housing, which aims for a national level of digital transformation, signed a business agreement with Naver.
It is expected that Naver's artificial intelligence (AI) and robot-based digital twin technology would be utilized for simulating and monitoring Saudi Arabia at the city level through the business agreement. Additionally, a project to develop a super app provided by the municipal, rural affairs and housing of Saudi Arabia, based on Naver's large-scale AI and cloud technology, is also anticipated.
The visit of the Saudi Arabian government delegation to Naver's advanced headquarters in November last year appears to have been a decisive opportunity. The headquarters, completed in April 2022, is seen as the center of Naver's ICT capabilities, incorporating Naver Labs' robot technology, Naver Cloud's AI and cloud technology, and Naver Works' systems.
According to Naver, visitors from other countries have been showing interest in its 1784 building.
Last year, Austrian President of the National Council Wolfgang Sobotka visited the building as well as U.S. Under Secretary of State for Political Affairs Victoria Nuland.
Sheikh Saud Sultan bin Mohammed Al Qasimi of Sharjah Emirates takes a look at robots at Naver's high-tech headquarters in Seongnam, Gyeonggi Province on June 12. Courtesy of Naver
The entire 1784 headquarters serves as a test bed for Naver's future technologies. Building on this, Naver formed a team consisting of Naver Cloud and Naver Labs' practitioners and technicians and visited Saudi Arabia in November last year to engage in technology sales activities. The visit of the Saudi Arabian government delegation to the 1784 headquarters can be seen as a response to Naver's technology sales.
Exporting technology to Saudi Arabia could be an opportunity for Naver to expand its overseas revenue share a key promise made by the company CEO to significantly increase the share of overseas revenue.