Naver is expected to surpass 7.5 billion dollars in annual revenue for the first time in its 25-year history. The company has established a diverse portfolio spanning search, e-commerce, fintech, content, and cloud services, showing its unique position in the competition with global platform companies.
Unlike multinational tech firms that make substantial profits in South Korea while minimizing their tax liabilities, Naver reinvests its domestic earnings back into the local economy. This approach fosters a symbiotic ecosystem, which is more significant for its financial performance.
According to industry analysts, Naver’s 2024 revenue exceeded 7.5 billion dollars on Monday. Kiwoom Securities has revised its earnings forecasts upward for the next three years.
Naver is also making significant achievements internationally. Naver Webtoon has secured its position as the leading digital comics platform in the U.S. and Japan, while the company has exported its cloud technology to Saudi Arabia and is establishing a Middle East subsidiary. In Japan, LINE maintains its dominance as the top messaging app.
Naver Contrasts with Global Tech Companies that Funnel Profits Overseas
Baedal Minjok was sold to German company Delivery Hero in 2019 and paid its parent company 281 million dollars in dividends in 2023. According to its audit report, Apple Korea remitted 219 million dollars to its U.S. headquarters in 2024, a 2.85-fold increase from the previous year.
The large-scale remittance of dividends by foreign companies also leads to the structural problem of capital outflow from South Korea. As dividend payments reduce operating profits, they consequently lower corporate tax obligations in the country. This explains why Apple Korea’s corporate tax payment amounted to only 56 million dollars last year.
On the other hand, based on its 2023 performance, Naver paid 338 million dollars in corporate taxes, while Google Korea paid only 10.5 million dollars in corporate taxes during the same period. Persistent allegations suggest that Google deliberately underreports its revenue to minimize its tax burden, though these claims remain challenging to verify conclusively.
Naver Commits $750 Million to Foster Shared Growth
Naver is also aggressively investing in future technologies. Its research and development (R&D) expenditure has long surpassed its operating profit.
Last year, Naver announced its plan to establish a $750 million “Impact Fund” over the next six years. This fund aims to support the growth of small and medium-sized enterprises (SMEs) and content creators in South Korea.
Since 2016, Naver has run the “Project Flower” program to assist SMEs and content creators in their digital transformation journeys. This initiative provides access to Naver’s successful business strategies and AI-based technologies.
While global companies make substantial profits from the South Korean market but remain hesitant to invest in domestic markets, Naver actively contributes to the domestic economy and talent development. This strategic move ensures South Korea remains competitive in emerging technologies, particularly artificial intelligence.
An IT industry insider commented, “Naver’s achievement of 7.5 billion dollars in annual revenue is significant not just for its financial growth, but for its commitment to transparent tax practices and social contributions.”
