Lee Hae-jin, the founder of Naver, returned to management as chairman of the board after about 7 years and is focusing on the advancement of artificial intelligence (AI) and the expansion of overseas operations. He is putting effort into the U.S. market, where these two management keywords intersect.
The chairman’s management strategy is also reflected in his ‘strategic maneuvering.’ By recently deploying executives with expertise in finance and investment to the U.S., there is growing expectation for additional mergers and acquisitions (M&A). An IT industry source noted, “Since the chairman’s return, Naver’s organizational restructuring and moves have been aligned with ‘AI and overseas,’” adding, “He is expected to take bold investments as a way to execute his vision.”
◇ New ‘institutional sector’ established for North American investment… Kim Nam-sun, a former CFO, appointed as representative
According to industry sources on the 23rd, the chairman established a new ‘institutional sector’ focused on finding growth drivers through investment in North America as soon as he took the reins of Naver this past March. Kim Nam-sun, previously Naver’s chief financial officer (CFO), has been appointed to lead the organization that was formed last month. Kim is referred to as the ‘M&A guru’ at Naver. He graduated from Seoul National University with a degree in materials engineering and obtained a law degree from Harvard Law School. He worked as a lawyer at a local law firm in the U.S. for about two years before joining investment firms Lazard, Morgan Stanley, and Macquarie. He joined Naver in August 2020.
The chairman will hold an investment networking event in Silicon Valley, U.S., on the 5th of next month, meeting with over 100 local venture capital (VC) and startup founders. Kim is also expected to participate, coordinating the chairman’s meetings with prominent local AI corporations.
The chairman will also discuss the launch of a newly established local corporation tentatively named ‘Naver Ventures,’ which will focus on investing in promising startups during this business trip to Silicon Valley. Kim is being considered to lead the new corporation.
Naver’s entry into the U.S. market is known to be a long-held dream of the chairman. His recent meeting in Korea with Donald Trump Jr., the son of U.S. President Donald Trump, regarding global expansion reflects this intention. Naver’s corporate venture capital (CVC) D2SF established a base in North America last October to support the local expansion of domestic tech startups.
◇ Poshmark, acquired two years ago, also restructured with a focus on North America
The chairman is also paying attention to the growth of the North American fashion second-hand trading platform ‘Poshmark.’ As a result, Kim moved from his position as Naver CFO to chair the board of Poshmark in March.
Naver successfully acquired 100% equity of Poshmark in a ‘big deal’ worth 1.66 trillion won in January 2023, a deal in which Kim played a leading role. The acquisition was conducted through a special-purpose corporation in the U.S. (Proton Parent, Inc.), of which Kim was the representative. Given that it was the largest M&A since Naver’s establishment, it has garnered positive evaluations from the chairman.
At the time of Naver’s acquisition, Poshmark was experiencing an annual loss of about 100 billion won. However, Naver viewed Poshmark’s potential for growth favorably, citing its monthly active user count of 18.4 million and 8 million annual active buyers. Additionally, the fact that 80% of total users are from the MZ generation and about 90% of millennial women in the U.S. belong to the Poshmark community also made it appealing.
Kim is currently accelerating the operational efficiency of Poshmark. He finalized the liquidation of Poshmark’s Australian subsidiary (Poshmark Pty Ltd.) in March and is reportedly speeding up the process for Poshmark’s operations in India and the U.K. The intention is to restructure the business focusing on North America, where achievements are being made. Poshmark, which was losing money before Naver’s acquisition, recorded profits in the first, second, and fourth quarters of last year, improving its revenue.
An IT industry source familiar with Naver’s situation noted, “The chairman’s decision to deploy M&A experts to the U.S. after his return is significant,” adding, “Various options, ranging from discovering AI startups that can create synergy with Naver to big deals like the acquisition of Poshmark, are likely to be broadly discussed.”