Naver and Kakao are expected to post solid results in the first quarter of this year. But their artificial intelligence (AI) businesses remain in the investment stage, and monetization appears to need more time. Experts said Naver is adding AI to its search base and Kakao to its chat base, but meaningful results within this year will be difficult.
On the 17th, financial data company FnGuide said Naver's first-quarter revenue is expected to come in at 3.1447 trillion won, up 12.84% from a year earlier. Operating profit is projected at 560.9 billion won, up 11%. Samsung Securities and DS Investment & Securities estimated that Naver's commerce institutional sector led the results. They analyzed that last year's second-half fee hikes and a base effect from Smart Store transaction growth were reflected.
For Kakao, thanks to strong performance in Talk Biz and the platform business, first-quarter revenue is expected to be 2.0099 trillion won, up 7.84% year over year, and operating profit is projected to rise 70.27% to 179.5 billion won. Kakao also appears to have continued improving profitability centered on Talk Biz, including ads and commerce.
However, AI, a new business for both companies, has not yet led to monetization. Naver is integrating AI across search, commerce, and advertising around its large-scale AI "HyperCLOVA X," but it remains in the stage of upgrading services and expanding traffic, so its actual contribution to revenue appears limited. Generative AI-based search and ad products are also in the early introduction stage, and near-term reflection in results is expected to be limited.
In Kakao's case, it is pursuing expansion of KakaoTalk-based AI services and an "AI super app" strategy, but users' perceived value and service completeness have fallen short of expectations, leaving the monetization model unclear. The share of AI-related revenue is also estimated to have remained minimal.
Choi Seung-ho, an analyst at DS Investment & Securities, said, "The shift of KakaoTalk to an AI super app is hard to be optimistic about because consumer response has been poor since last year's update." He added, "Naver is also increasing large-scale investment in AI infrastructure, but the timing to recoup the expense is uncertain."
Both companies are expected to continue ramping up their AI businesses. On Mar. 23 at the 2026 regular shareholders meeting, Naver CEO Choi Soo-yeon said, "AI has become a major inflection point that determines corporations' competitiveness beyond the evolution of services," adding, "As we are already proving AI transitions across various areas, we will provide a differentiated agent experience that only Naver can deliver."
Chung Shin-a, CEO of Kakao, also said at the 2026 regular shareholders meeting, "Kakao's AI connects agents with expertise so they can follow the user's actual flow and solve multiple tasks naturally without breaks," adding that the company will focus on AI and KakaoTalk for healthy growth.
Hwang Yong-sik, a professor in the business administration department at Sejong University, said, "Since Naver and Kakao are not AI-specialized corporations, investment is inevitable as part of service diversification. It seems the two companies have been in the AI business for about five years. Naver and Kakao should succeed in AI monetization within at least the next three years to save face."
He added, "Platform corporations are also showing signs of trial and error without finding clear direction in the AI transition process. A strategy that maintains core competitiveness while finding areas where AI can be applied is important."