2025. 2. 10. 14:45ㆍKorean Economy
Naver has become the first Korean internet company to exceed 10 trillion KRW in annual revenue. The company attributed this achievement to the continued growth of its core businesses, including search and commerce, as well as consistent investment in R&D, particularly in artificial intelligence (AI) and future growth areas.
Choi Soo-yeon, CEO of Naver, announced that the company will implement an "On-service AI" strategy this year, integrating AI into its platforms to enhance services and create new business opportunities, thereby strengthening its competitive edge.
According to preliminary financial results released on the 7th, Naver reported consolidated revenue of 10.74 trillion KRW and an operating profit of 1.98 trillion KRW in 2023, representing year-over-year growth of 11.0% and 32.9%, respectively.
These figures mark the highest annual revenue and operating profit in Naver’s history. Additionally, Naver became the first domestic internet company to achieve over 10 trillion KRW in annual revenue. The company's annual adjusted EBITDA grew 24.9% year-over-year, reaching 2.66 trillion KRW.
For Q4 2023, Naver posted revenue of 2.89 trillion KRW and an operating profit of 542 billion KRW, reflecting annual increases of 13.7% and 33.7%, respectively. Adjusted EBITDA for the quarter rose 28.6%, reaching 746 billion KRW.
Steady Growth Across Key Business Segments
Naver's core business divisions, including Search Platform and Commerce, continued to expand in Q4. The revenue breakdown by segment is as follows:
- Search Platform: 1.06 trillion KRW
- Commerce: 775.1 billion KRW
- Fintech: 400.9 billion KRW
- Content: 467.3 billion KRW
- Cloud: 177.6 billion KRW
The Search Platform division recorded 14.7% year-over-year growth, driven by enhanced platform competitiveness and optimized ad performance. Revenue from search ads increased by 11.0%, while display ad revenue rose by 9.7% due to expanded adoption of feed-based ads in categories such as sports, entertainment, blogs, and cafes. As a result, the annual revenue of the Search Platform division reached 3.95 trillion KRW, marking a 9.9% increase from the previous year.
The Commerce division experienced a 17.4% year-over-year growth, fueled by the launch of the Naver Plus Store in October, enhanced shopping experiences, expanded membership benefits, and improved ad efficiency. Notably, the Naver Plus Membership program saw a rise in new subscribers after adding Netflix benefits, leading to a 15.9% increase in membership revenue, which reached 53.6 billion KRW. In Q4, Naver’s total gross merchandise volume (GMV) reached 13.2 trillion KRW, and the Commerce division’s annual revenue increased by 14.8% year-over-year, totaling 2.92 trillion KRW.
The Fintech division expanded 12.6% year-over-year, driven by the continued growth of Smart Store transactions and increased external payment volumes. In Q4, total payment volume (TPV) increased by 18.3% year-over-year, reaching 19.3 trillion KRW. The Fintech division’s annual revenue rose by 11.3%, totaling 1.51 trillion KRW.
The Content division maintained stable growth despite the exclusion of Naver Z from consolidated results. Webtoons and AI-powered content services contributed to a 0.2% increase in revenue. Domestic Webtoon revenue grew 6.8% year-over-year, reaching 427.9 billion KRW. The Content division’s annual revenue climbed 3.7% to 1.8 trillion KRW.
The Cloud division saw a 41.1% year-over-year increase, driven by the expansion of NeuroCloud and Line Works’ paid user base, as well as revenue from Saudi Arabia’s digital twin project. The Cloud division’s annual revenue rose by 26.1%, reaching 563.7 billion KRW.
AI-Powered Growth and Future Strategy
CEO Choi stated, "This year marks a pivotal moment for implementing Naver's 'On-service AI' strategy across all services. By leveraging AI, we aim to enhance our platforms, create new value, and unlock new business opportunities, ultimately strengthening Naver’s unique competitive advantage."
She also revealed plans to launch the Naver Plus Store app in the first half of 2024, shifting the shopping experience from a search-based model to a more personalized, discovery-driven approach, providing users with a more intuitive and engaging shopping experience.