'Line' ㅡ two-edged sword for Naver
Firm hires Goldman Sachs, JPMorgan for IPOBy Kim Yoo-chulKim Sang-hunNHN CEONaver, Korea’s dominant web portal, has reported impressive earnings for 2013 thanks to robust performance of its free mobile messaging application ― Line.But like Samsung Electronics, which is being pressured to cut its heavy dependence on smartphones, Naver is facing a dilemma over its rapidly growing Line business as its dependence on mobile messenger service is growing month after month.This means that if Line loses growth momentum, it is highly probable that Naver will be significantly impacted due to a lack of an alternate growth engine. Naver is now being challenged by the rise of other free messaging applications services, including China’s We Chat and Korea’s Kakao Talk.The concerns arose after the latest earnings report showed that its growth in 2013 was largely powered by the Line business. The messenger service was launched in Japan in June 2011 and has since reached 231 countries and is offered in 16 languages. In a regulatory filing to the Korea Exchange Thursday, Naver sa