Seoul: Naver Corp., South Korea's largest online portal operator, announced a 12.7 percent increase in its fourth-quarter operating profit, fueled by strong performances in its search and e-commerce sectors.

According to Yonhap News Agency, Naver's operating profit for the October-December period reached 610.6 billion won (US$415 million), up from 542 billion won a year earlier. The company's revenue also experienced a rise of 10.7 percent, reaching 3.19 trillion won. Despite these gains, net profit dropped by 68 percent to 164.6 billion won, primarily due to a base effect following a substantial one-off payment from Japan's LY Corp. in 2024.

Naver reported that sales from its search platform unit slightly decreased by 0.5 percent year-on-year, totaling 1.05 trillion won. However, the e-commerce unit saw a significant 36 percent increase in sales to 1.05 trillion won, attributed to growth in its global commerce business. The fintech division also experienced a 13 percent sales increase, reaching 453.1 billion won, driven by the expansion of its smart store platform.

The content arm witnessed a 2.3 percent decline in sales, amounting to 456.7 billion won in the fourth quarter, while the enterprise division's sales fell by 3.2 percent compared to the previous year. For the entire year of 2025, Naver reported an annual net profit of 1.82 trillion won, a decrease of 5.8 percent year-on-year. However, operating income for the year increased by 11.6 percent to 2.2 trillion won, and annual revenue rose by 12.1 percent to 12.03 trillion won.

Naver has expressed its intention to continue expanding its sales by offering customized services powered by artificial intelligence (AI) and providing more benefits to members to stay competitive with other commerce operators. Choi Soo-yeon, Naver's CEO, stated that in 2025, the company focused on enhancing its core business competitiveness by utilizing artificial intelligence in advertising and commerce through its rich content and data. Choi further emphasized Naver's commitment to strategic investments in content, AI infrastructure, and delivery services to secure long-term growth and accelerate revenue expansion.