Naver and Toss escalate conflict over search algorithms and POS integration

A legal and regulatory conflict has escalated between South Korean tech giant Naver and fintech unicorn Toss. The dispute originated from Toss’s reward-based marketing, specifically its ‘attendance check mission.’ This service provides users with small monetary rewards for searching specific keywords on Naver, such as restaurant menus or distances. Naver alleges that this practice creates artificial search traffic that distorts its search algorithms and undermines the reliability of its Smart Store and Place services.

In February, Naver requested a police investigation into Toss (operated by Viva Republica) for alleged business interference and violations of the Information and Communications Network Act. While other companies reportedly ceased such marketing after Naver’s requests, Toss has demanded that Naver provide data proving the alleged traffic distortion.

The conflict has expanded into the payment terminal sector. Toss Place, a subsidiary of Toss, is considering filing a complaint with the Korea Fair Trade Commission, alleging that Naver has unfairly excluded ‘Toss POS’ from its ‘Place Plus’ integration service. Place Plus links store POS data with Naver’s search and map services to display menu information and peak hours. Toss claims it has been excluded despite being a top-three platform in the industry. Naver has responded by stating that it is difficult to pursue business cooperation with companies that cause continuous damage to its services.