SEOUL, April 23 (AJP) - South Korea’s leading tech companies, Naver and Kakao, are set to release their first-quarter earnings for 2025 next month, amid intensifying pressure to keep pace in the rapidly evolving landscape of artificial intelligence.
According to a filing with the Financial Supervisory Service on Wednesday, Naver will announce its results on May 9 via a conference call, while Kakao is scheduled to release its earnings a day earlier, on May 8.
Analysts anticipate that Naver will report revenue of 2.8 trillion won (approximately $2.05 billion) for the first quarter, representing a year-on-year increase of 10.9 percent. Operating profit is projected to rise 16.6 percent to 512.3 billion won.
Naver, which crossed 10 trillion won in annual revenue for the first time last year, continues to post record quarterly figures. However, the company has faced criticism for lagging in the global race to develop competitive AI technologies.
The return of founder Lee Hae-jin as chairman of the board last month has signaled a renewed strategic focus. Lee has pledged to prioritize artificial intelligence and new business ventures, underscoring the urgency with which the company is approaching the current wave of technological transformation.
In the first quarter, Naver launched “AI Briefing,” a generative AI-powered search service integrated into some of its platforms, including Place. It also introduced the Naver Plus Store, a standalone shopping app, as part of an aggressive push into e-commerce.
“While advertising revenue may soften slightly due to economic conditions, growth in commerce will sustain the upward trend in operating profit,” said Oh Dong-hwan, an analyst at Samsung Securities. He added that the near-term impact of the new app and AI service would likely be limited.
Kakao, by contrast, is expected to report a year-on-year decline in both revenue and profit. Analysts project revenue of 1.94 trillion won, down 2.5 percent, and operating profit of 105.6 billion won, a 12.2 percent drop.
The company has faced a series of challenges in recent months, including regulatory scrutiny and legal issues involving its founder, Kim Beom-su. Investigations into key business units such as Kakao Mobility have added to the strain.
In February, Kakao sought to reset its strategic direction by announcing a partnership with OpenAI CEO Sam Altman during his visit to Korea. The collaboration reflects a contrasting approach to Naver’s “sovereign AI” model, with Kakao favoring a more integrative orchestration strategy.
Internally, Kakao continues to restructure, spinning off its Daum portal service and reportedly weighing the sale of stakes in Kakao Entertainment and Kakao Mobility.
Despite plans to launch its own AI-based “Kanana” service in the first half of the year, the product has yet to debut. The OpenAI collaboration remains in its early stages, with few tangible outcomes to date.
“The content segment, which contributes nearly half of Kakao’s revenue, will remain under pressure in the near term,” said Nam Hyo-ji, an analyst at SK Securities. “However, we expect performance to improve in the latter half of the year as optimism builds around the OpenAI partnership.”
reporter
Candice Kim
candicekim1121@ajupress.com
Copyright ⓒ Aju Press All rights reserved.
View more comments