Lee Hae-jin, the founder of South Korea's leading online portal Naver, has returned to the company's board as chairperson, marking a significant moment in the tech industry as the company gears up for a robust artificial intelligence (AI) strategy. His appointment was confirmed during Naver's annual general shareholders' meeting held in Seongnam, south of Seoul, on March 26, 2025. Lee, who has been serving as the company's global investment officer (GIO), will now oversee Naver's overarching business strategies.
Lee previously stepped down as board chairperson in March 2017 and left the board entirely in 2018 to focus on expanding Naver's global footprint in his role as GIO. His return comes at a time when concerns are rising that South Korea is lagging behind global tech giants in the rapidly developing field of AI model development.
Naver is expected to enhance the development of HyperClova X, the company's proprietary large language model (LLM) first introduced in 2023. The company aims to integrate AI across key services, including search and commerce platforms, to bolster its existing ecosystem.
"I think it's incredibly unfortunate for the entire world to rely on just one or two search engines or AI platforms. To preserve the diversity of the internet, we need a wide range of search engines and services," Lee stated after the shareholders' meeting.
Choi Soo-yeon, the CEO of Naver, who has been reappointed as company chief, emphasized that AI should not be a standalone service but must be embedded into core businesses such as search, advertising, commerce, and content. Despite the strengths of HyperClova X as a Korean language-focused model, its limitations pose challenges in competing directly with models from global tech giants like Google and Meta. This has led to speculation that Naver may pursue strategic AI partnerships rather than relying solely on internal development.
"We are open to collaboration with global big tech firms and various external LLMs, and such discussions are ongoing," Choi remarked in February, highlighting the company's willingness to explore external partnerships.
Lee's return to the board is reminiscent of Google founder Larry Page's return to the CEO position in 2011, which signified a commitment to transformative change. An industry observer noted, "South Korea's tech firms have fallen significantly behind in AI, and Lee's return to the board reflects a sense of urgency." This urgency is palpable in the tech community, as many look to Naver to lead the charge in AI development.
On the same day as Lee's appointment, the CEO of Kakao, another major player in South Korea's tech landscape, addressed rumors regarding the potential sale of its portal business. Earlier in March 2025, Kakao had announced plans to spin off its portal business, aiming to recapture its declining share in the domestic search engine market. However, CEO Chung Shin-a clarified that there are currently no plans to sell the portal site Daum after the spinoff.
"We believe that Daum has strong potential to operate as an independent portal business," Chung stated, emphasizing the importance of creating an independent management structure that allows for autonomous experimentation.
Lee Hae-jin's return as chairperson is expected to accelerate Naver's "On-Service AI" strategy, which integrates AI across all of the company's services. This strategy is anticipated to be fully implemented under Lee's leadership, with a focus on enhancing user experience through AI innovations.
Naver plans to launch the AI search service "AI Briefing," which will summarize search results, on March 27, 2025. Additionally, the company intends to introduce an AI agent (assistant) service specialized in commerce within the year, which is expected to enhance consumer-to-consumer (C2C) services like Poshmark and Cream.
Lee expressed Naver's mission, stating, "Naver has a sense of mission as a company that will lead the AI era." He emphasized the need to transform innovative technology into services that meet user needs, asserting that Naver's unique determination will enable it to compete effectively against larger companies.
Choi, who successfully led the company to surpass 10 trillion won in annual sales last year, is expected to work closely with Lee to drive AI innovation and explore new business opportunities. She reiterated, "AI technology should create tangible changes that users can actually feel by naturally blending into key services like search, advertising, and commerce content, rather than being an independent service."
As Naver embarks on this ambitious journey, the company is also committed to expanding its global presence. It has plans to accelerate the execution of its Sovereign AI strategy, focusing on non-Western markets, including the development of an Arabic-based LLM in Saudi Arabia and targeting the Southeast Asian market in collaboration with Nvidia.
Lee underscored the importance of diversity in the AI landscape, stating, "It's very sad for the world to use only one or two AIs. Naver's mission is to contribute to the diversity of the internet." This commitment to diversity is echoed by Choi, who aims to create another success story following the examples of Line and Webtoon.
As Naver prepares to navigate the challenges posed by the global tech landscape, the return of its founder as chairperson symbolizes a renewed focus on innovation and a strategic approach to AI development. The coming months will reveal how effectively Naver can leverage its unique strengths to carve out a competitive edge in the rapidly evolving AI market.
