fintech

Feb. 6 (Asia Today) — South Korean internet giant Naver said Thursday it has entered the era of 12 trillion won ($9.1 billion) in annual revenue, driven by strong growth in commerce and fintech and a renewed push to monetize artificial intelligence services.

Naver reported 2025 revenue of 12.35 trillion won ($9.15 billion) and operating profit of 2.21 trillion won ($1.64 billion), up 12.1% and 11.6%, respectively, from a year earlier, during its fourth-quarter earnings call. Fourth-quarter revenue rose 10.7% to 3.20 trillion won ($2.37 billion), while operating profit increased 12.7% to 610.6 billion won ($453 million), lifting the operating margin to 19.1%.

Commerce and fintech led the gains. Fourth-quarter commerce revenue surged 36% year-on-year to 1.05 trillion won ($780 million), while annual transaction volume on Naver’s Smart Store platform grew 10%. The company said revamped membership benefits and guaranteed delivery services helped strengthen user retention, while AI-driven personalized recommendations boosted conversion rates and advertising and commission revenue.

Fintech revenue also climbed sharply. Fourth-quarter payment volume rose 19% to 23 trillion won ($17.0 billion), bringing full-year fintech revenue to 1.69 trillion won ($1.25 billion). Chief Executive Choi Soo-yeon said platform trust and ecosystem-building efforts drove growth in transactions and new memberships.

During the call, Naver declared 2026 the first year of full-scale AI monetization. Choi said AI accounted for about 55% of advertising revenue growth last year, highlighting what she called tangible returns from the company’s AI investments.

Naver plans to roll out hyper-personalized AI agents across its services, beginning with a shopping agent for Naver Plus Store later this month following an internal beta test. Vertical AI agents covering restaurants, locations, travel and finance are set to follow later this year. In the second quarter, Naver will add an “AI tab” to its search results, while a unified intelligent assistant, dubbed “Agent N,” is scheduled for launch this summer.

The company also plans to begin monetization tests, including advertising within its AI briefing service, in the second half of the year. Choi said longer user engagement times could lift both ad pricing and effectiveness.

Beyond AI, Naver is advancing structural changes to secure future growth. Its financial unit is proceeding with the previously announced plan to bring crypto exchange operator Dunamu under full ownership, fueling market expectations of a won-based stablecoin and expanded use of Naver Pay’s 34 million-user ecosystem.

Naver is also expanding its cloud business, citing steady demand for GPU services, and plans to conduct outdoor proof-of-concept trials for robot delivery this year, drawing on experience gained in Japan and Saudi Arabia.

Addressing regulatory issues, Choi said government-led foundation model initiatives are unlikely to materially affect Naver’s sovereign AI strategy or business-to-business revenue.

The company also strengthened its shareholder return policy. Naver said it plans to return 25% to 35% of average consolidated free cash flow over a three-year period from 2025 to 2027. For the 2025 fiscal year, it will propose dividends totaling 393.6 billion won ($291 million), or 2,630 won per share, subject to board approval. Beginning this quarter, Naver will reorganize its revenue disclosure into platform, financial and global challenge segments to improve transparency.

— Reported by Asia Today; translated by UPI

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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260206010002456