Naver Focuses on 'AI Enhancement,' Kakao on 'Stabilization'... Contrasting Atmospheres in Board Restructuring

[Korea Financial Times, Kim JaeHun] Naver and Kakao will hold their regular general shareholders' meetings on the same day for the first time in about 12 years. However, the two companies are approaching this with distinctly different atmospheres.

Naver plans to strengthen its AI business with the return of founder and Global Investment Officer (GIO) Lee Hae-jin to the board after seven years. In contrast, Kakao, which faced various risks last year, appears to be maintaining its stance of renewal and stabilization by reinforcing its team with legal experts.

On March 13, Naver and Kakao announced that they would hold their general shareholders' meetings on the 26th to decide key agendas such as appointing new board members. The agendas are drawing attention as they reflect the companies' major business directions for this year.

Naver has confirmed the reappointment of CEO Choi Soo-yeon, who led the company's AI transformation, while CFO Kim Nam-sun and ESG Policy Director Chae Sun-joo will step down due to term expiration. Simultaneously, Lee Hae-jin GIO will return as an inside director, re-entering management.

Lee Hae-jin GIO is known for establishing Naver as a leading search portal in a market dominated by Google and Yahoo. After stepping down from his role as chairman of the board in 2017 to modernize governance, he has focused on global expansion and investment strategies for Naver.

Recently, Lee Hae-jin has emphasized Naver’s "Sovereign AI" strategy, which he highlighted during the AI Seoul Summit in April of last year. Sovereign AI refers to AI services tailored to regional characteristics and cultures, emerging as a concept to preserve diversity and protect AI sovereignty against global big tech's large-scale AI systems.

Building on this strategy, Naver has achieved successes such as securing partnerships and contracts for Sovereign AI projects in Arab regions like Saudi Arabia since late last year. With plans to focus on global expansion and service enhancement for its AI business this year, synergy between Lee Hae-jin GIO and CEO Choi Soo-yeon is highly anticipated.

A Naver official stated, "Lee Hae-jin GIO possesses deep insights into both the company and the global IT market. As we accelerate our entry into the AI era, his experience in successfully navigating paradigm shifts will help provide long-term growth direction based on Naver’s philosophy while stabilizing overall management."

Additionally, Naver plans to reappoint external director Roh Hyuk-joon, a professor at Seoul National University School of Law, and appoint Kim Yi-bae, a professor of accounting at Duksung Women’s University, as a new external director to strengthen expertise in accounting and legal fields.


While Naver focuses on enhancing its AI business with its founder's return to management, Kakao is maintaining its stabilization efforts and compliance-focused governance initiated last year.

In 2024, Kakao faced significant challenges, including founder Kim Beom-soo’s legal troubles over alleged stock price manipulation during SM Entertainment's acquisition process. Though Kim Beom-soo was released from custody, court proceedings are ongoing. On the 13th, Kim Beom-soo also resigned as chairman of the Corporate Alignment Center (CA Center) due to health issues, increasing pressure on CEO Chung Shina.
Kakao has been restructuring its business by reducing subsidiaries while focusing on building a compliance culture through its independent Compliance & Trust Committee (CTC). The CTC recently stated in its annual report that it aims to "enhance compliance systems, strengthen social trust, and establish compliance governance frameworks for platform industries." It plans to assess affiliated companies’ compliance systems based on evaluation indicators this year.

Reflecting this focus on stabilization rather than dramatic changes, Kakao’s board is bringing in accounting and legal experts as audit committee members.

Internally, Shin Jong-hwan CFO was newly appointed as an inside director after joining Kakao last May. Shin Jong-hwan has over 20 years of financial experience at CJ Group and its major subsidiaries. He is expected to contribute to Kakao’s financial stabilization and corporate structure efficiency.

For external directors, Kakao reappointed Choi Se-jeong (professor at Korea University’s Media Studies Department) and Park Sae-rom (assistant professor at Ulsan National Institute of Science and Technology’s Industrial Engineering Department). Additionally, Kim Sun-wook (managing attorney at SeSeung Law Firm) was appointed as an external director and audit committee member to strengthen internal monitoring functions and risk management capabilities.

Kim JaeHun (rlqm93@fntimes.com)