SEOUL, August 08 (AJP) - South Korea's two largest internet platforms are taking increasingly different approaches to monetizing artificial intelligence, with Naver beginning to generate new advertising revenue from AI-powered search while Kakao focuses on building an AI agent ecosystem before pursuing meaningful revenue growth.
Naver said its AI services are already contributing to advertising revenue after integrating sponsored content into AI-powered search features such as AI Briefing and AI Tab, allowing the company to monetize search areas that previously generated little or no advertising income.
Speaking during the company's second-quarter earnings call, Chief Executive Choi Soo-yeon said generative AI had begun creating new advertising inventory rather than replacing existing search ads.
The company said AI Tab has surpassed 10 million users, with more consumers using conversational AI to search for products, restaurants and services. Naver expects AI to improve purchase conversion rates by better understanding user intent and connecting searches with shopping and reservation services.
The strategy allows Naver to leverage its existing search traffic and advertiser base to generate AI-related revenue without introducing an entirely new business model.
However, the company continues to face rising AI infrastructure costs as it expands investment in data centers and computing capacity. Despite a 16 percent increase in second-quarter revenue, operating profit edged down as higher depreciation and infrastructure spending weighed on earnings.
Kakao, meanwhile, is taking a longer-term approach.
Rather than focusing on immediate AI monetization, the company said it is building an AI agent platform capable of connecting users with third-party services through KakaoTalk.
The platform is designed to allow AI assistants not only to answer questions but also to complete tasks such as restaurant reservations, shopping and payments by linking directly with external partners.
During its second-quarter earnings call, Chief Executive Chung Shin-a said Kakao aims to establish the foundation for mass adoption of its AI services by the end of this year, with meaningful monetization expected to begin in 2027.
Chief Financial Officer Shin Jong-hwan also said AI investment currently precedes revenue generation, reflecting the company's focus on expanding partnerships and user adoption before commercializing AI services.
The contrasting strategies highlight two different paths toward AI commercialization: Naver is seeking faster returns by embedding AI into its established advertising business, while Kakao is betting that AI-driven transactions and third-party services will become its primary revenue engine over the longer term.
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