NAVER vs Kakao: Who Wins the AI Platform War?

Korea's AI Competition Heats Up

The Korean AI market in 2026 is seeing full-scale competition centered on NAVER and Kakao. Both companies possess their own large language models (LLMs) but differ significantly in strategic approach.

NAVER: Technology-First Strategy

NAVER is aggressively targeting the B2B market based on HyperCLOVA X.

NAVER's strength lies in its rich Korean language data and search traffic. AI-related revenue in 2025 is estimated to have grown 180% YoY.

Kakao: Ecosystem Integration Strategy

Kakao has adopted a strategy of integrating Kanana AI into the KakaoTalk ecosystem.

Kakao's strength is its 50 million KakaoTalk user base, enabling rapid AI service proliferation.

Investment Analysis

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NAVER: Leading in AI technology and monetization, direct beneficiary of B2B AI market expansion. Hold recommendation at current valuation.

Kakao: Early stage of AI service adoption but significant user base potential. Currently significantly undervalued, presenting mid-to-long-term buying opportunity.