Naver to focus on a future technology… Record high investment of KRW 1.3 trillion in the first half of the year
Jin Hyun Jin | 2jinhj@ | 2017-08-04 10:05:56
It is predicted that Naver has invested about KRW 1.3 trillion in future core technologies such as artificial intelligence (AI) and voice recognition in the first half of this year. This is the largest investment ever, exceeding the annual investment of KRW 1.3 trillion last year. Naver is expected to invest aggressively in the second half of the year, making strategic moves to become a global IT company.
According to the industry on August 3, Naver has invested about KRW 1.33 trillion, including KRW 774.2 billion for external companies and about KRW 560 billion for internal research and development (R & D) in the first half of this year. The investment was about 155% in the first half of last year, compared with about KRW 510 billion invested in internal and external investment.
Naver`s investment in the first half of this year has already exceeded its annual size last year. Naver invested KRW 1.96 trillion (KRW506.6 billion in the first half, KRW509.2 billion in the second half) in internal investment and KRW 26.3 billion (excluding KRW4.6 billion in the first half and KRW21.7 billion in the second half). Last year, Naver`s sales totaled more than 25% at KRW 422.6 billion. Naver, the largest investor in the first half of the year, is now expected to invest in the first half of the year.
In the first half of this year, Naver has made 10 external investments, including Sound Hound, a voice recognition company, and Epipolar, a 3D (D) map development company. The total investment in the first half of this year, announced by Naver in the second quarter, is about KRW 274.2 billion including the venture capital fund. In June, Mirae Asset Daewoo and Daewoo Mirae invested KRW 500 billion in cross-shareholding for the domestic and overseas businesses in the digital finance field.
The amount of internal investment has also increased. Naver`s investment in R & D for the first half of this year is about KRW 560 billion, which is expected to account for 25% of total sales in the first half (sales of KRW 2.20 trillion in the first half). In the same period last year, Naver’s internal R & D expenses totaled KRW 506.6 billion, an increase of more than 10% this year. The company is strengthening its technological capabilities by actively conducting R & D, publishing papers, etc., centering on `Naver Labs`, a technology development corporation.
Naver`s investment is a strategic move to secure competitiveness with global IT dinosaurs. Google`s parent company, Alphabet, invested about USD 8.1 billion (about KRW 9.1 trillion) in the first half of this year, spending about 16 % of its revenue on technology development.
Naver expects to continue its technology development with Naver Labs in the industry, a technology development subsidiary such as AI and autonomous navigation, in the second half of this year, and to make significant investments such as Naver Pay (N Peak) and cloud product development.
"It is likely that Naver will invest in technology development in the second half of the year, similar to the first half of the year," mentioned Kim Dong-hee, a researcher at the Korea Meritz Securities Research Institute. A related Naver representative said, "It is difficult to pinpoint how much we will invest in the current investment or the second half of the year. We will invest in start-ups that have original technology, but at the same time, we will focus on future technologies as well."
By Jin Hyun Jin 2jinhj@
[ copyright ⓒ The Digitaltimes ]
According to the industry on August 3, Naver has invested about KRW 1.33 trillion, including KRW 774.2 billion for external companies and about KRW 560 billion for internal research and development (R & D) in the first half of this year. The investment was about 155% in the first half of last year, compared with about KRW 510 billion invested in internal and external investment.
Naver`s investment in the first half of this year has already exceeded its annual size last year. Naver invested KRW 1.96 trillion (KRW506.6 billion in the first half, KRW509.2 billion in the second half) in internal investment and KRW 26.3 billion (excluding KRW4.6 billion in the first half and KRW21.7 billion in the second half). Last year, Naver`s sales totaled more than 25% at KRW 422.6 billion. Naver, the largest investor in the first half of the year, is now expected to invest in the first half of the year.
In the first half of this year, Naver has made 10 external investments, including Sound Hound, a voice recognition company, and Epipolar, a 3D (D) map development company. The total investment in the first half of this year, announced by Naver in the second quarter, is about KRW 274.2 billion including the venture capital fund. In June, Mirae Asset Daewoo and Daewoo Mirae invested KRW 500 billion in cross-shareholding for the domestic and overseas businesses in the digital finance field.
The amount of internal investment has also increased. Naver`s investment in R & D for the first half of this year is about KRW 560 billion, which is expected to account for 25% of total sales in the first half (sales of KRW 2.20 trillion in the first half). In the same period last year, Naver’s internal R & D expenses totaled KRW 506.6 billion, an increase of more than 10% this year. The company is strengthening its technological capabilities by actively conducting R & D, publishing papers, etc., centering on `Naver Labs`, a technology development corporation.
Naver`s investment is a strategic move to secure competitiveness with global IT dinosaurs. Google`s parent company, Alphabet, invested about USD 8.1 billion (about KRW 9.1 trillion) in the first half of this year, spending about 16 % of its revenue on technology development.
Naver expects to continue its technology development with Naver Labs in the industry, a technology development subsidiary such as AI and autonomous navigation, in the second half of this year, and to make significant investments such as Naver Pay (N Peak) and cloud product development.
"It is likely that Naver will invest in technology development in the second half of the year, similar to the first half of the year," mentioned Kim Dong-hee, a researcher at the Korea Meritz Securities Research Institute. A related Naver representative said, "It is difficult to pinpoint how much we will invest in the current investment or the second half of the year. We will invest in start-ups that have original technology, but at the same time, we will focus on future technologies as well."
By Jin Hyun Jin 2jinhj@