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Games & Commerce

Naver, Kakao step up AI monetisation, turning search and chat into transactions

Naver and Kakao plan to accelerate monetisation of artificial intelligence services in the second half, after strong first-quarter results. Kakao is expanding AI features in KakaoTalk that proactively suggest information based on chat context and is testing agent commerce tied to gifting and external partners. Naver is strengthening action-oriented AI that links personalised search answers to shopping, orders and reservations, aiming for monetisation in later quarters through ads and higher conversion.

Games & Commerce

Naver grapples with pricing in AI investment ahead of monetisation

Naver’s first-quarter revenue rose 16.3 percent from a year earlier, but operating profit grew 7.2 percent as AI infrastructure investment and content procurement costs were incurred first. Its operating margin fell to 16.7 percent from 19.1 percent in the previous quarter. Infrastructure costs rose 32.5 percent and partner and marketing expenses also increased. Naver plans to step up AI advertising monetisation from the second half.

Games & Commerce

Naver to link search and purchases with \'action AI\', profit ramp-up in H2

Naver is making a shift to connect search to transactions a core task this year, focusing on building an uninterrupted flow from search to purchases and reservations around what it calls “action AI”. The company posted first-quarter revenue of 3.24 trillion won and operating profit of 541.8 billion won. It plans to test generative AI ads tied to shopping and local services from the second quarter and begin full monetisation in the third quarter.