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Naver makes foray into finance business

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By Baek Byung-yeul
  • Published KST
  • Updated KST

By Baek Byung-yeul

Choi In-hyuk, CEO of Naver Financial

Naver, the country's largest internet portal operator, has entered the financial services business, launching affiliate Naver Financial Friday.

Naver CEO Han Seong-sook announced the company's foray into the new business, saying it will develop competitive financial products with securities firm Mirae Asset Daewoo.

“Based on successful examples we had in shopping and online-to-offline services, we will bring innovation in the financial sector,” Han said during a conference call on Thursday announcing the company's third-quarter earnings.

Naver Chief Operating Officer and Naver Financial CEO Choi In-hyuk said the new company will release products including bank accounts, stocks and credit cards. The products will be closely aligned with Naver Pay, Naver's digital wallet service.

“Naver Financial will basically provide a payment service based on e-commerce platforms,” Choi said. “The company plans to release financial products over the next two or three years.”

He said Naver Financial will drive evolution in the financial sector based on years of service experience.

“Naver Pay, which has led Korea's simple payment app service market, will evolve into a new financial platform, Naver Financial,” Choi said. “Based on the service experience we have earned and market insight, we plan to present valuable financial products and services to users and business operators.”

Regarding Mirae Asset Daewoo's investment in Naver Financial, Naver said the two are in talks and further details will be announced soon. Mirae Asset Daewoo, in which Naver is the third-largest shareholder, is rumored to have invested 500 billion won ($428 million) in Naver Financial.

E-Best Securities analyst Sung Jong-hwa said that with payments via Naver Pay in the third quarter topping 4 trillion won, the highest among fintech firms here, it is presumed Naver will have an impact on the financial sector through services linked to its mobile payment services and e-commerce platforms.