Naver Operating Profit Drops 20.9% Amid AI Investments

Naver Corp reported a 20.9% year-on-year decline in third-quarter operating profit to 451.3 billion won, despite total revenue increasing 10.7% to approximately 3.47 trillion won. Net profit fell 45.2% to 402.5 billion won.

The profit drop resulted from aggressive spending on artificial intelligence infrastructure, content, and offline data, alongside a 32.3% increase in marketing expenses for ecommerce promotions. To offset these costs, the company is collaborating with Nvidia and Brookfield to build an AI factory.

CEO Choi Soo-yeon stated that the AI factory has already secured computing service contracts worth around 2 trillion won. Additionally, Naver plans to invest 1 trillion won by 2030 to establish a new logistics affiliate intended to enhance delivery capabilities for its commerce sector.