Naver to overhaul biz structure, enhance AI integration

[Photo by MK DB]

Naver Corp. revealed a significant overhaul of its business structure to better align with the evolving artificial intelligence (AI) landscape. The South Korean digital platform company plans to dissolve its existing independent Company In Company (CIC) system and introduce a new decision-making body directly under CEO Choi Soo-yeon aimed at fully integrating AI across all Naver technologies, from search and shopping to community services.

Choi shared the company’s new direction and engaged in discussions with employees at an internal “Companion Day” meeting held on Wednesday. Naver currently operates five CICs –Search, Community, Biz, Forest, and Glace, covering various services from search to e-commerce and neighborhood information. The plan is to absorb these CICs back into Naver headquarters, where they will be reorganized into 12 specialized teams.

The restructuring will categorize these teams into three core areas: “Product and Platform,” focusing on development and design for new user experiences and technological innovations; “Business and Services,” aimed at exploring new business opportunities and enhancing service appeal; and “Content,” dedicated to developing and providing content types that meet user demand.

Naver’s CIC system has played a crucial role in the company’s growth since its founding in 2015, allowing high-potential organizations to operate independently and pursue business development autonomously. Companies such as Naver Webtoon and Naver Financial (now Naver Pay), which were successfully spun off in 2017 and 2019 respectively, are testament to the model’s effectiveness.

CEO Choi Soo-yeon. [Courtesy of Naver Corp.]

With the organizational revamp, Choi has introduced three new committees directly under her oversight, focusing on “Global Management,” “Product and Tech,” and “Employee Growth.” The move is a shift from the autonomous CIC model to a more centralized, top-down approach led by the CEO. However, Naver will maintain some degree of autonomy for certain business units, such as its game streaming platform CHZZK and social media platform Naver Band, by operating them as separate “cell” organizations.

Choi emphasized the need for change in the face of the internet’s evolving landscape and the shift towards an AI-centered technological paradigm. She highlighted the importance of breaking down silos between business areas and fostering a flat organizational structure that encourages diverse insights, lively discussions, and extensive collaboration across teams.

Naver’s rival Kakao also recently made moves to integrate its Commerce CIC into its headquarters and reorganize its existing Daum CIC into a separate “Content CIC” to enhance its content services. Kakao has also been reinforcing its AI capabilities by forming a dedicated AI organization at the headquarters level and recruiting a Chief AI Officer (CAIO), signaling that the race between the two tech giants in vertical AI service expansion will continue to intensify.