Naver's All-Out Effort to Support Small Businesses... 180 Billion Won Invested (Comprehensive)

[Asia Economy Reporter Bu Aeri] Han Seong-suk, CEO of Naver, has made a bold move in the 'digital business' connecting 4.8 million small and medium-sized enterprises (SMEs) and 1.6 million creators (knowledge workers, influencers, etc.) active on Naver. The aim is to share creators' 'knowledge' and 'experience' to help SMEs settled on Naver grow. Naver will invest 180 billion KRW over two years to support SMEs and creators.

Synergy of Connecting Business and Knowledge Within Naver

At an online press conference held on the 24th, CEO Han explained, "While collaborations between famous artists and large brands are actively happening offline, it is difficult for those running small-scale businesses or creative activities to discover each other and collaborate."

Naver plans to create new business opportunities by connecting SMEs and creators based on its platform technology. CEO Han said, "Naver's various technologies and platforms such as search, artificial intelligence (AI) recommendation, and data provide the foundation to connect SMEs and creators," adding, "We will create new digital business synergy by linking business and creative activities through Naver's technology."

To this end, Naver is launching the 'Expert for SME' program, which connects Smart Store sellers with 1,000 iN Expert professionals. This program makes it easy for Smart Store sellers to meet experts. For example, sellers engaged in overseas direct purchase businesses can be quickly connected with customs brokers, and sellers operating both online and offline stores can be connected with labor attorneys and tax accountants. Smart Store sellers can easily meet experts suited to their business growth stage and industry, while Expert professionals secure loyal customers.

Naver is also preparing the 'Brand Connect Platform' to link influencers and brands. Since its launch last year, 12,000 influencers have been active on the 'Influencer Search,' with over 71% receiving advertising compensation. The 'Brand Connect Platform' provides information on their activity status and latest content. Naver stated, "We expect it will help brands discover creators that fit their marketing concepts and characteristics."

The 'Fulfillment (Integrated Logistics Management System)' service for Naver Shopping sellers will be fully operational starting next year. CEO Han said, "We invested in logistics companies to provide a support base for businesses using Smart Store or Place services to better manage their operations," adding, "We have no plans to directly enter the delivery market." They also plan to enhance live shopping 'Shopping Live' technology and support related education and infrastructure.

180 Billion KRW Investment... SME Loans to Launch Within the Year

Naver will invest 180 billion KRW over two years in growth programs supporting SMEs and creators. CEO Han stated, "As data-driven growth programs for SMEs and creators diversify, we will invest 180 billion KRW over two years to create greater added value."

Naver is also preparing to launch a 'Smart Store Business Loan Service' in partnership with financial companies within the year. Previously, Naver introduced this product, explaining that sellers with a certain amount of sales on Naver Shopping can apply even without a physical store or income, and that loan approval rates and limits are high due to loan screening based on business information. This aims to help Smart Store sellers with financing for business growth. If 4.8 million SMEs use this service, the ripple effect on the financial sector is expected to be significant.

Naver also supports strengthening SMEs' global capabilities. To this end, it has prepared the 'Global Small Giants' training program, allowing SMEs to gain global experience. This method transfers the experiences of webtoon artists who explored local business opportunities by participating in overseas conferences and book fairs to SMEs. CEO Han said, "Next year marks the full-scale integration of management in Japan, which will be an important momentum for Naver's global business," adding, "Once COVID-19 ends, we will lay the foundation for SMEs to operate in larger markets."

Why Is Naver So Focused on 'SMEs'?

Regarding why Naver is putting all its efforts into SME growth, CEO Han explained, "It is to secure Naver's competitiveness."

As a search-based service, Naver needs diverse 'content' created by various businesses and creators, not just content from one or two large corporations, to provide better services. CEO Han emphasized, "Because diverse products, businesses, and creator activities are necessary, building a more solid ecosystem is important."

He added, "If they grow within the Naver platform, search satisfaction increases, and they use various marketing solutions within Naver, creating a virtuous ecosystem."

Meanwhile, regarding competition in the commerce market and the cooperation between SK Group and Amazon, CEO Han said, "There is a lot of collaboration among commerce-related companies. The expected scenario has occurred," adding, "Global companies like eBay, Amazon, Google, and Apple will launch even stronger offensives, and we will prepare and respond well to these areas."

Recently, Naver exchanged treasury shares with CJ Group and has left open the possibility of partnerships with other companies in the future. CEO Han said, "If there is a good partner, we have always kept the possibility of treasury share exchanges open," adding, "However, there are no ongoing matters at present."

This content was produced with the assistance of AI translation services.