Baek Byung-yeul is a journalist at The Korea Times focused on cultural content, including films and cultural events in South Korea. You can contact him at baekby@koreatimes.co.kr to share your insights.
Naver vows to boost growth by offering AI services by late August
Choi Soo-yeon, CEO of Naver, speaks during a press conference at the company's headquarters in Seongnam, Gyeonggi Province, April 13, 2022. Courtesy of Naver
By Baek Byung-yeul
By Baek Byung-yeul
Naver is set to unveil its hyperscale AI platform HyperCLOVA X and generative AI service CLOVA X, Aug. 24, and apply these emerging technologies to its major services to enhance user experiences in search, shopping and online payments, the company's CEO said Friday.
“CLOVA X is an interactive chat platform that anyone can easily use and it has the scalability to easily connect with Naver's services, so various attempts will be possible,” Choi Soo-yeon told investors during a conference call on second-quarter earnings.
CLOVA X is expected to become a competitor to OpenAI's ChatGPT. Choi said that the main goals of Naver's AI services are to provide world-class AI technology, boost business and creators' productivity, provide customized AI services and offer new experiences that are fully integrated with its core services.
"One of the areas where we expect generative AI to contribute the most is in the creative field,” Choi said. "We are developing generative AI services for creators, business customers and sellers within Naver, as well as tools to support various productivity activities within the enterprise, such as collaboration, coding, design and development.”
Generative AI services will provide enhanced experiences for users of Naver services, the CEO said.
“We will utilize the rich databases of each of Naver's services such as advertising, commerce, local and travel to provide generative AI experiences that only we can do,” she said.
The company is also focusing on strengthening the competitiveness of its e-commerce offerings by using AI and its Sunday delivery service, which is still in the pilot test phase.
“We see our weak point in competition with Coupang is delivery,” Choi said. “We will expand our competitiveness in delivery and differentiate ourselves from others through membership services, live commerce and AI.”
In addition to Naver's AI services, the CEO said that the company will provide AI solutions that are specially designed for enterprises and government agencies.
“Many companies want to adopt an AI solution, but they are facing difficulties due to costs, security and lack of skills,” she said. “(By providing our service solution) we expect we can build a win-win relationship with many companies and government organizations that worry about losing their independence and initiative in an era where AI will soon become a competitive advantage.”
Naver posted second-quarter revenue of 2.4 trillion won ($1.83 billion) and an operating profit of 372.7 billion won, up 17.7 percent and 10.9 percent year-on-year, respectively. The company said its commerce and content businesses showed especially strong growth, increasing by 40 percent year-on-year.
Regarding content businesses such as online comics and online novels, Kim Nam-sun, chief financial officer of Naver, said, “We are currently applying AI technology to online comics and novels in six regions, including North America, to provide highly customized results based on technology that recommends works with users' preferred art style.”
He added that Naver Webtoon, a subsidiary that provides online comics and novels, will be listed on the stock market next year.
"The listing of Naver Webtoon is progressing as planned and we plan to complete preparations for its listing next year,” the CFO said.