The domestic platform market is being reshaped around artificial intelligence (AI). With Upstage entering the platform business based on Daum, the competition among AI platforms is evolving into a three-way race previously dominated by Naver and Kakao.
All three companies have developed their own large language models (LLMs) or integrated AI technologies across their platforms, but their competitive strengths vary significantly. Naver leads in search, Kakao excels in the mobile ecosystem, and Upstage is recognized for its AI technology.
In the search segment, Naver is currently in the lead. According to the IT industry on June 17, Naver has built the largest platform in South Korea by connecting various services such as blogs, cafes, maps, and shopping. Recently, it has expanded its generative AI search capabilities, including AI briefings and an AI tab, utilizing its proprietary LLM, HyperCLOVA X, thereby transforming the search experience to be more AI-centric. Naver's ability to link search results to shopping and content is also seen as a competitive advantage.
Upstage has established a differentiated competitive edge in AI technology. The preview version of its next-generation LLM, Solar Open2, scored 44.4 points on the Artificial Analysis Intelligence Index (AAII), closely approaching the performance of ChatGPT 5 and Claude Sonnet 4.6.
Upstage is not limiting itself to AI model development; it is also expanding into the platform business. The company plans to combine its AI agent platform, Timely, with Daum to transition the existing portal into an AI agent platform. This application of AI models directly to services and platforms is viewed as a unique competitive strength.
Kakao remains dominant in the mobile ecosystem. KakaoTalk boasts approximately 46 million monthly active users, making it a lifestyle platform used by nearly all smartphone users in South Korea. It connects finance, mobility, content, and commerce within a single ecosystem. Recently, Kakao has integrated its own AI model, Kanana, and collaborated with OpenAI to enhance AI functionalities in KakaoTalk, expanding everyday AI services. Its close user engagement is considered a significant advantage for expanding AI services.
In commerce, Naver holds a competitive edge. Naver's AI shopping app, Naver Plus Store (Neplus), recorded 8.75 million monthly active users last month, surpassing 11st Street. Naver has secured a vast number of sellers and users centered around Neplus, while also enhancing AI recommendation features using search data.
Kakao has established its competitiveness through relationship-based commerce, such as gifting and Talk Deals. While Upstage's direct commerce capabilities are still limited, it is working on expanding purchasing recommendations and marketplace functionalities using AI agents.
In the content sector, both Naver and Kakao are strong players. Naver has built an ecosystem based on user-generated content (UGC) through webtoons, blogs, and cafes, while Kakao has secured various intellectual properties (IPs) centered around Kakao Entertainment, including webtoons, web novels, and music. Upstage's challenge is to create differentiated services by combining existing content assets from Daum, such as news, cafes, and Tistory, with AI.
The competition among AI platforms is developing in a direction that combines each company's existing strengths with AI. Naver is enhancing its competitiveness in search and shopping, Kakao is focusing on the mobile ecosystem, and Upstage is leveraging its AI technology. The future competition will likely hinge on how quickly these companies can implement AI technologies into actual services and attract users.
* This article has been translated by AI.
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