NAVER Corp. reported record quarterly revenue of 2.9 trillion won ($2.10 billion) for the second quarter, surpassing analyst expectations as the South Korean internet giant’s investments in artificial intelligence and commerce infrastructure begin paying dividends.
Net profit jumped 49.8% to 497.4 billion won ($358 million), though this figure was flattered by one-time charges that depressed prior-year results. Operating profit grew a more modest 10.3% to 521.6 billion won ($376 million), with margins slipping to 17.9% from 18.1% a year earlier.
The standout performer was NAVER’s commerce division, which posted 19.8% revenue growth driven by its new Plus Store mobile app and expanded delivery services. The fintech segment also showed resilience with 11.7% growth as transaction volumes increased.
However, costs are mounting rapidly. Marketing expenses surged 31.5% as NAVER battles intensifying competition, while infrastructure spending rose 15.2% to support computing asset investments. The enterprise cloud division, despite securing high-profile AI projects, saw revenue growth slow to just 5.8%.
While CEO Choi Soo-yeon expressed confidence in the company’s “sovereign AI” capabilities, investors may question whether NAVER can sustain this growth trajectory as it increases spending to defend market share against global tech rivals expanding into South Korea.
