Naver pushes AI growth in advertising, commerce and defence sectors

South Korean internet giants Naver and Kakao are betting on artificial intelligence to revive their stalled share prices. Naver plans to roll out AI‑powered search briefings and generative‑AI advertising that will use a cost‑per‑click model, while also expanding an "AI Factory" in partnership with Nvidia to offer B2B AI infrastructure. Analysts note the companies face high GPU investment costs – about 1 trillion won for Naver – and will need clear revenue contributions before their valuations improve. Kakao, meanwhile, is integrating an "agentic AI" platform across its KakaoTalk ecosystem to boost ad and commerce performance.

In a parallel move, Naver’s Team Naver has signed an agreement with aerospace‑defence firm Korea Aerospace Industries (KAI) to develop a defence‑focused AI foundation model and physical‑AI future‑combat systems. The partnership aims to reduce reliance on foreign technology, create sovereign AI capabilities for unmanned aircraft and satellites, and eventually commercialise the technology through government projects and block‑funding ventures. Both initiatives highlight Naver’s strategy to diversify its AI applications from consumer advertising to national security domains.