Naver Cloud Expansion Strategy: Doubling Exports in Three Years
Naver Cloud, South Korea’s prominent cloud computing and artificial intelligence (AI) player, is poised to witness a substantial surge in its exports over the next three years. The company asserts that its AI services stand out due to their high adaptability, making them well-suited for markets beyond China and the United States.
South Korea, unlike many other nations, boasts its own foundational artificial intelligence models. Naver, a tech giant, further distinguishes itself by maintaining a dominant local search engine, positioning itself as a formidable competitor to Alphabet’s Google.
Highlighting the technological dominance of the U.S. and China, Naver Cloud CEO Kim Yuwon points out that the standards set by these countries may not seamlessly align with the regulatory frameworks, user preferences, and business environments of other nations. This mismatch provides a strategic advantage for Korean firms, as mentioned in a Reuters interview.
While specific export figures remain undisclosed, Naver affiliates recently secured a significant $100 million contract in October. The contract involves providing digital twin mapping services to Saudi Arabia’s Ministry of Municipal and Rural Affairs. Naver Cloud anticipates further regional projects, with advanced negotiations already in progress with entities in the United Arab Emirates, the Philippines, and Singapore.
Embracing AI Locally
Countries such as the United Arab Emirates, the Philippines, and Singapore are eager to adopt AI and are increasingly interested in developing internal ecosystems rather than solely relying on offerings from the U.S. or China. Kim explains that Naver’s diverse services, including AI, cloud computing, corporate tools, and data center operation, position the company as a one-stop solution provider.
Naver Cloud, with its expansive portfolio, recently inaugurated South Korea’s largest data center, capable of accommodating up to 600,000 servers. Kim emphasizes that international clients engaging with Naver can access a comprehensive suite of services, including robotics from other units within the company. The appeal lies in steering clear of U.S. “global standard” services, addressing concerns about compatibility with future technologies. Naver’s approach ensures a tailored and adaptable solution for diverse international markets.
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