Q2 2026 NAVER Corp Earnings Release

Speaker #1: 안녕하십니까.

Speaker #2: Good morning. We will now begin NAVER's Q2 2026 earnings conference call. For the benefit of our investors joining from home and abroad, we will provide simultaneous interpretation services for the presentation and switch to consecutive interpretation for the Q&A session.

Paul Choi: Good morning. We will now begin NAVER's 2026 Q2 earnings conference call. For the benefit of our investors joining from home and abroad, we will provide simultaneous interpretation service for the presentation and switch to consecutive interpretation for the Q&As. Analysts, investors, good morning. I am Paul Choi from the Capital Markets Office. I would like to thank the analysts and investors for joining NAVER's 2026 Q2 earnings presentation. On this call, we are joined by CEO Soo-Yeon Choi and CFO Hee-Chul Kim. They will walk you through NAVER's business highlights and strategies and financial results. After, we will entertain your questions. Please note that the earnings results are K-IFRS-based, provided for timely communications, and have not yet been audited by an independent auditor and hence are subject to change after such review. With that, I will turn it over to our CEO to present on our business highlights.

Paul Choi: Good morning. We will now begin NAVER's 2026 Q2 earnings conference call. For the benefit of our investors joining from home and abroad, we will provide simultaneous interpretation service for the presentation and switch to consecutive interpretation for the Q&As. Analysts, investors, good morning. I am Paul Choi from the Capital Markets Office. I would like to thank the analysts and investors for joining NAVER's 2026 Q2 earnings presentation. On this call, we are joined by CEO Soo-Yeon Choi and CFO Hee-Chul Kim. They will walk you through NAVER's business highlights and strategies and financial results. After, we will entertain your questions. Please note that the earnings results are K-IFRS-based, provided for timely communications, and have not yet been audited by an independent auditor and hence are subject to change after such review. With that, I will turn it over to our CEO to present on our business highlights.

Speaker #2: Analysts, investors, good morning. I am Paul Choi from the Capital Markets Office. I would like to thank the analysts and investors for joining NAVER's Q2 2026 earnings presentation.

Speaker #2: On this call, we are joined by CEO Soo-Yeon Choi and CFO Hee Kim. They will walk you through NAVER's business highlights and strategies, as well as financial results. Afterward, we will entertain your questions.

Speaker #2: Please note that the earnings results are K-IFRS based and provided for timely communication. They have not yet been audited by an independent auditor and are subject to change after such review.

Speaker #2: With that, I will turn it over to our CEO to present on our business highlights.

Speaker #3: Good morning. I am Soo-Yeon Choi, the CEO. Before I begin our Q2 business update, I'd like to talk about our strategic partnership with NVIDIA and our AI Factory business.

Soo-Yeon Choi: Good morning. I am Soo-Yeon Choi, the CEO. Before I begin our Q2 business update, I'd like to talk about our strategic partnership with NVIDIA and our AI Factory business. As announced in June, NAVER is working with NVIDIA to jointly build and operate AI Factories on a global scale. We expect to begin generating revenue with the launch of our first 55 MW AI Factory in H1 2027. We plan to expand capacity to 100 MW by the end of 2027 and 200 MW in 2028. On our long term, it is to build AI infrastructure at the GW scale. We see this as an investment in a structurally growing market, not a one-time business opportunity.

Soo-yeon Choi: Good morning. I am Soo-Yeon Choi, the CEO. Before I begin our Q2 business update, I'd like to talk about our strategic partnership with NVIDIA and our AI Factory business. As announced in June, NAVER is working with NVIDIA to jointly build and operate AI Factories on a global scale. We expect to begin generating revenue with the launch of our first 55 MW AI Factory in H1 2027. We plan to expand capacity to 100 MW by the end of 2027 and 200 MW in 2028. On our long term, it is to build AI infrastructure at the GW scale. We see this as an investment in a structurally growing market, not a one-time business opportunity.

Speaker #3: As announced in June, NAVER is working with NVIDIA to jointly build and operate AI factories on a global scale. We expect to begin generating revenue with the launch of our first 55-megawatt AI factory in the first half of 2027.

Speaker #3: We then plan to expand capacity to 100 megawatts by the end of 2027, and 200 megawatts in 2028. In the long term, it is to build AI infrastructure at the gigawatt scale.

Speaker #3: We see this as an investment in a structurally growing market, not a one-time business opportunity. As generative AI adoption accelerates, AI transformation expands across industries, and inference in AI agents becomes more widespread, we expect global demand for AI computing to continue growing over the medium to long term.

Soo-Yeon Choi: As generative AI adoption accelerates, AI transformation expands across industries, and inference in AI agents become more widespread, we expect global demand for AI computing to continue growing over the medium to long term. Some have raised concerns that low-cost, high-efficiency models could reduce computing demand. However, we see the opposite. As the cost per unit of compute declines, AI adoption inference and AI edge agents will become more widespread, driving further growth in the overall computing demand. Today, coding is the most proven AI use case. Demand for computing across broader industries and physical AI has yet to fully emerge. As AI expands across more industries and services, we expect additional inflection points where overall computing demand accelerates again. We are already seeing early signs of this trend. Leading global technology companies continue to report strong cloud performance and growing order backlogs.

Soo-yeon Choi: As generative AI adoption accelerates, AI transformation expands across industries, and inference in AI agents become more widespread, we expect global demand for AI computing to continue growing over the medium to long term. Some have raised concerns that low-cost, high-efficiency models could reduce computing demand. However, we see the opposite. As the cost per unit of compute declines, AI adoption inference and AI edge agents will become more widespread, driving further growth in the overall computing demand. Today, coding is the most proven AI use case. Demand for computing across broader industries and physical AI has yet to fully emerge. As AI expands across more industries and services, we expect additional inflection points where overall computing demand accelerates again. We are already seeing early signs of this trend. Leading global technology companies continue to report strong cloud performance and growing order backlogs.

Speaker #3: Some have raised concerns that low-cost, high-efficiency models could reduce computing demand. However, we see the opposite. As the cost per unit of compute declines and AI adoption, inference, and AI agents become more widespread, this will drive further growth in overall computing demand.

Speaker #3: Today, coding is the most proven AI use case. Demand for computing across broader industries and physical AI has yet to fully emerge. As AI expands across more industries and services, we expect additional inflection points where overall computing demand accelerates again.

Speaker #3: We are already seeing early signs of this trend. Leading global technology companies continue to report strong cloud performance and growing order backlogs. Their continued investments in AI also demonstrate that demand for AI infrastructure is already becoming a reality.

Soo-Yeon Choi: Their continued investments in AI also demonstrate that AI demand for AI infrastructure is already becoming a reality. Meanwhile, despite growing demand, expanding supply takes time. It requires large-scale power, suitable sites, cooling infrastructure, skilled talent, regulatory approvals, and broad community support. Many companies are now beginning to build new data centers. They continue to face bottlenecks, including labor shortages, power constraints, limited semiconductor supply, and local opposition to new construction. NAVER is in a different position. Through our partnership with NVIDIA, we have secure technology and supply support. We also have ready access to power and sites, strong capital partnerships, and years of experience operating a full-stack platform. In addition, we were the first in Korea to secure customers and launch GPU services. We will build on that experience as we scale the business.

Soo-yeon Choi: Their continued investments in AI also demonstrate that AI demand for AI infrastructure is already becoming a reality. Meanwhile, despite growing demand, expanding supply takes time. It requires large-scale power, suitable sites, cooling infrastructure, skilled talent, regulatory approvals, and broad community support. Many companies are now beginning to build new data centers. They continue to face bottlenecks, including labor shortages, power constraints, limited semiconductor supply, and local opposition to new construction. NAVER is in a different position. Through our partnership with NVIDIA, we have secure technology and supply support. We also have ready access to power and sites, strong capital partnerships, and years of experience operating a full-stack platform. In addition, we were the first in Korea to secure customers and launch GPU services. We will build on that experience as we scale the business.

Speaker #3: Meanwhile, despite growing demand, the expanding supply takes time. It requires large-scale, power-suitable sites, cooling infrastructure, skilled talent, regulatory approvals, and broad community support.

Speaker #3: Many companies are now beginning to build new data centers. They continue to face bottlenecks, including labor shortages, power constraints, limited semiconductor supply, and local opposition to new construction.

Speaker #3: NAVER is in a different position. We have our partnership with NVIDIA. We have secured technology and supply support. We also have ready access to power and sites.

Speaker #3: Strong capital partnerships, and years of experience operating a full-stack platform. In addition, we were the first in Korea to secure customers and launch GPU services.

Speaker #3: We will build on that experience as we scale the business. To further strengthen this partnership, NVIDIA has decided to participate, for the first time in Asia, in a private placement of approximately $1 billion of newly issued NAVER shares.

Soo-Yeon Choi: To further strengthen this partnership, NVIDIA has decided to participate for the first time in Asia in a private placement of approximately USD 1 billion of newly issued NAVER shares. This goes beyond the technology partnership. It reflects a long-term commitment in which both companies will share the opportunities and the risks of this business. At the same time, we are in discussions with Brookfield, a leading global asset manager, to finance USD 9 billion of computing infrastructure required for the AI Factory. We have selected Brookfield as our exclusive preferred partner and plan to move toward a definitive agreement. Under this partnership, NVIDIA will provide the technology and ecosystem, our capital partner will finance the infrastructure, and NAVER will lead the platform operations and customer service. This structure allows us to scale the business quickly while keeping our upfront capital requirements to a minimum.

Soo-yeon Choi: To further strengthen this partnership, NVIDIA has decided to participate for the first time in Asia in a private placement of approximately USD 1 billion of newly issued NAVER shares. This goes beyond the technology partnership. It reflects a long-term commitment in which both companies will share the opportunities and the risks of this business. At the same time, we are in discussions with Brookfield, a leading global asset manager, to finance USD 9 billion of computing infrastructure required for the AI Factory. We have selected Brookfield as our exclusive preferred partner and plan to move toward a definitive agreement. Under this partnership, NVIDIA will provide the technology and ecosystem, our capital partner will finance the infrastructure, and NAVER will lead the platform operations and customer service. This structure allows us to scale the business quickly while keeping our upfront capital requirements to a minimum.

Speaker #3: This goes beyond the technology partnership. It reflects a long-term commitment in which both companies will share the opportunities and the risks of this business.

Speaker #3: At the same time, we are in discussions with Brookfield, a leading global asset manager, to finance $9 billion of computing infrastructure required for the AI factory.

Speaker #3: We have selected Brookfield as our exclusive preferred partner and plan to move toward a definitive agreement. Under this partnership, NVIDIA will provide the technology and ecosystem, our capital partner will finance the infrastructure, and NAVER will lead the platform operations and customer service.

Speaker #3: The structure allows us to scale the business quickly while keeping our upfront capital requirements to a minimum. We are also confident in our ability to secure customers.

Soo-Yeon Choi: We are also confident in our ability to secure customers. Through our global off-takers, NVIDIA's ecosystem, and our existing enterprise and public sector customer base, we expect to secure customers on our initial capacity ahead of launch. We have many years of experience operating data centers reliably. Our experience together with our Sovereign AI track record demonstrates our full-stack operational capacities to customers that require security and reliability. The AI needs of each industry are different. Manufacturing requires AI for production innovation. Defense requires AI infrastructure in air-gapped environments. The public administration sector is focused on AI transformation, while financial institutions prioritize data security. Yet across all these industries, demand is growing for trusted infrastructure and technology partners. NAVER has both strong track record in areas where security and data sovereignty are critical.

Soo-yeon Choi: We are also confident in our ability to secure customers. Through our global off-takers, NVIDIA's ecosystem, and our existing enterprise and public sector customer base, we expect to secure customers on our initial capacity ahead of launch. We have many years of experience operating data centers reliably. Our experience together with our Sovereign AI track record demonstrates our full-stack operational capacities to customers that require security and reliability. The AI needs of each industry are different. Manufacturing requires AI for production innovation. Defense requires AI infrastructure in air-gapped environments. The public administration sector is focused on AI transformation, while financial institutions prioritize data security. Yet across all these industries, demand is growing for trusted infrastructure and technology partners. NAVER has both strong track record in areas where security and data sovereignty are critical.

Speaker #3: Through our global off-takers, NVIDIA's ecosystem, and our existing enterprise and public sector customer base, we expect to secure customers for our initial capacity ahead of launch.

Speaker #3: We have many years of experience operating data centers reliably. Our experience, together with our sovereign AI track record, demonstrates our full-stack operational capacities to customers that require security and reliability.

Speaker #3: The AI needs of each industry are different. Manufacturing requires AI for production innovation; defense requires AI infrastructure and air-gapped environments. The public administration sector is focused on AI transformation, while financial institutions prioritize data security. Yet across all these industries, demand is growing for trusted infrastructure and technology partners.

Speaker #3: NAVER has a strong track record in areas where security and data sovereignty are critical. This includes GPU services for leading Korean enterprises, a nuclear power plant AI platform for Korea Hydro & Nuclear Power, and a dedicated AI platform for the Bank of Korea.

Soo-Yeon Choi: This includes GPU services for leading Korean enterprises, a nuclear power plant AI platform for Korea Hydro & Nuclear Power, and a dedicated AI platform for the Bank of Korea. More recently, we have also expanded into the defense sector through partnerships with Korea Aerospace Industries and Hanwha. We are continuing discussions on AI models and dedicated private AI cloud infrastructure for defense applications. The reason NAVER has been able to continue building these references is that we have expanded our capabilities beyond data center and cloud operations and Sovereign AI model development by adding the AI Factory businesses. This allows us to flexibly provide the services the market needs.

Soo-yeon Choi: This includes GPU services for leading Korean enterprises, a nuclear power plant AI platform for Korea Hydro & Nuclear Power, and a dedicated AI platform for the Bank of Korea. More recently, we have also expanded into the defense sector through partnerships with Korea Aerospace Industries and Hanwha. We are continuing discussions on AI models and dedicated private AI cloud infrastructure for defense applications. The reason NAVER has been able to continue building these references is that we have expanded our capabilities beyond data center and cloud operations and Sovereign AI model development by adding the AI Factory businesses. This allows us to flexibly provide the services the market needs.

Speaker #3: More recently, we have also expanded into the defense sector through partnerships with Korea Aerospace Industries and Hanwha. We are continuing discussions on AI models and dedicated private AI cloud infrastructure for defense applications.

Speaker #3: The reason NAVER has been able to continue building these references is that we have expanded our capabilities beyond data center and cloud operations, and sovereign AI model development, by adding the AI factory businesses.

Speaker #3: This allows us to flexibly provide the services the market needs. With our full stack capabilities, expanding infrastructure model, services, and together with our proven sovereign AI experience in Korea and overseas, we are approaching this market with a high value-added offering that combines GPU computing, cloud models, and managed services, rather than simply leasing computing capacity.

Soo-Yeon Choi: With our full-stack capacities, expanding infrastructure model services, and together with our proven Sovereign AI experience in Korea and overseas, we are approaching this market with a high value-added offering that combines GPU computing, cloud models, and managed services, rather than simply leasing computing capacity. Supported by long-term contracts and high utilization rates, we aim to deliver meaningful revenue and profit early on. Through our AI Factory business with NVIDIA, we will secure a new growth driver in the global AI computing market. Next, let me walk you through NAVER's platform performance for the Q2. NAVER's core strategy is Actionable AI. We are delivering a new search experience that seamlessly connects search, commerce, and payments. At the same time, we are actively applying AI across our services to improve content creation and quality, enhance the effectiveness of our advertising products, and deliver a better user experience.

Soo-yeon Choi: With our full-stack capacities, expanding infrastructure model services, and together with our proven Sovereign AI experience in Korea and overseas, we are approaching this market with a high value-added offering that combines GPU computing, cloud models, and managed services, rather than simply leasing computing capacity. Supported by long-term contracts and high utilization rates, we aim to deliver meaningful revenue and profit early on. Through our AI Factory business with NVIDIA, we will secure a new growth driver in the global AI computing market. Next, let me walk you through NAVER's platform performance for the Q2. NAVER's core strategy is Actionable AI. We are delivering a new search experience that seamlessly connects search, commerce, and payments. At the same time, we are actively applying AI across our services to improve content creation and quality, enhance the effectiveness of our advertising products, and deliver a better user experience.

Speaker #3: Supported by long-term contracts and high utilization rates, we aim to deliver meaningful revenue and profit early on. Through our AI Factory business with NVIDIA, we will secure a new growth driver in the global AI computing market.

Speaker #3: Next, let me walk you through NAVER's platform performance for the second quarter. NAVER's core strategy is actionable AI. We are delivering a new search experience that seamlessly connects search, commerce, and payments.

Speaker #3: At the same time, we are actively applying AI across our services to improve content creation and quality, enhance the effectiveness of our advertising products, and deliver a better user experience.

Speaker #3: These efforts began to translate into stronger user engagement and improved monetization metrics in the second quarter. First, let me highlight the performance of AI TAP, our flagship actionable AI service.

Soo-Yeon Choi: These efforts began to translate into stronger user engagement and improved monetization metrics in Q2. First, let me highlight the performance of AI Tab, our flagship Actionable AI service. AI Tab officially launched on 25 June. As of early August, it has surpassed 10 million monthly active users, establishing itself quickly as a new search engine. Weekly return rates, a key indicator of user loyalty, have also more than doubled since the early testing phase and have continued to grow solid momentum. At the same time, the CTR for shopping and local content has exceeded 40%, showing that users' exploration is translating into actual purchases and reservations. Powered by personalized recommendations based on real purchase data and shopping reviews, AI Tab continues to shorten the journey from search to decision-making. AI Tab is quickly establishing itself as Actionable AI that helps people in their everyday lives.

Soo-yeon Choi: These efforts began to translate into stronger user engagement and improved monetization metrics in Q2. First, let me highlight the performance of AI Tab, our flagship Actionable AI service. AI Tab officially launched on 25 June. As of early August, it has surpassed 10 million monthly active users, establishing itself quickly as a new search engine. Weekly return rates, a key indicator of user loyalty, have also more than doubled since the early testing phase and have continued to grow solid momentum. At the same time, the CTR for shopping and local content has exceeded 40%, showing that users' exploration is translating into actual purchases and reservations. Powered by personalized recommendations based on real purchase data and shopping reviews, AI Tab continues to shorten the journey from search to decision-making. AI Tab is quickly establishing itself as Actionable AI that helps people in their everyday lives.

Speaker #3: AI TAP officially launched on June 25th. As of early August, it has surpassed 10 million monthly active users, establishing itself quickly as a new search engine.

Speaker #3: Weekly return rates, a key indicator of user loyalty, have also more than doubled since the early testing phase and continue to gain solid momentum.

Speaker #3: At the same time, the CTR for shopping and local content has exceeded 40%, showing that users' exploration is translating into actual purchases and reservations.

Speaker #3: Powered by personalized recommendations based on real purchase data and shopping reviews, AI TAP continues to shorten the journey from search to decision-making. AI TAP is quickly establishing itself as actionable AI that helps people in their everyday lives.

Speaker #3: AI TAP in Q3 will enhance the real estate search function and WAIL browser agent. We also plan to launch a health agent later this year.

Soo-Yeon Choi: AI Tab in Q3 will enhance a real estate search function and Naver Whale agent. We also plan to launch a health agent later this year. Going forward, AI Tab will continue to evolve with a focus not only on quality of its recommendations, but also on its contribution to actual transaction conversions. Through this, we will further strengthen the virtuous flywheel that drives transaction across our platform. We will also continue to strengthen discovery and exploration by securing our content and data. Through NAVER Mate, we have built a foundation for attracting high-quality creators and encouraging quality content. During the FIFA Club World Cup in June, we were also able to apply our media AI technology to automatically generate highlight clips during matches. In addition, we also introduced tag recommendations and anti-based features to further improve content quality. Monetization through generative AI advertising is also gaining traction.

Soo-yeon Choi: AI Tab in Q3 will enhance a real estate search function and Naver Whale agent. We also plan to launch a health agent later this year. Going forward, AI Tab will continue to evolve with a focus not only on quality of its recommendations, but also on its contribution to actual transaction conversions. Through this, we will further strengthen the virtuous flywheel that drives transaction across our platform. We will also continue to strengthen discovery and exploration by securing our content and data. Through NAVER Mate, we have built a foundation for attracting high-quality creators and encouraging quality content. During the FIFA Club World Cup in June, we were also able to apply our media AI technology to automatically generate highlight clips during matches. In addition, we also introduced tag recommendations and anti-based features to further improve content quality. Monetization through generative AI advertising is also gaining traction.

Speaker #3: Going forward, AI TAP will continue to evolve, with a focus not only on the quality of its recommendations, but also on its contribution to actual transaction conversions.

Speaker #3: Through this, we will further strengthen the virtuous flywheel that drives transactions across our platform. We will also continue to improve our content and data. Through NAVER MATE, we have built a foundation for attracting high-quality creators and encouraging quality content.

Speaker #3: During the FIFA Club World Cup in June, we were also able to apply our media AI technology to automatically generate highlight clips during matches.

Speaker #3: In addition, we also introduced tag recommendations and AI-based features to further improve content quality. Monetization through generative AI advertising is also gaining traction.

Speaker #3: AI Briefing ads completed testing during the second quarter and officially launched at the end of July. They are significant in two ways. First, generative AI services are beginning to emerge as a new source of advertising revenue.

Soo-Yeon Choi: AI Briefing has completed testing during Q2 and officially launched at the end of July. They are significant in two ways. First, generative AI services are beginning to emerge as a new source of advertising revenue. In the near term, we are primarily applying AI Briefing ads to informational queries that were previously not monetized. This minimizes cannibalization of our existing advertising businesses. As a result, we expect AI Briefing ads to expand to new advertising inventory rather than replacing existing search ads. Initial results have also been positive. AI Briefing ads delivered a CPC that was 30% higher than existing search ads, and CTR was also more than 30% higher. Purchase conversion rates improved by more than threefold, demonstrating strong effectiveness from advertisers' perspective.

Soo-yeon Choi: AI Briefing has completed testing during Q2 and officially launched at the end of July. They are significant in two ways. First, generative AI services are beginning to emerge as a new source of advertising revenue. In the near term, we are primarily applying AI Briefing ads to informational queries that were previously not monetized. This minimizes cannibalization of our existing advertising businesses. As a result, we expect AI Briefing ads to expand to new advertising inventory rather than replacing existing search ads. Initial results have also been positive. AI Briefing ads delivered a CPC that was 30% higher than existing search ads, and CTR was also more than 30% higher. Purchase conversion rates improved by more than threefold, demonstrating strong effectiveness from advertisers' perspective.

Speaker #3: In the near term, we are primarily applying AI briefing ads to informal informational queries that were previously not monetized. This minimizes cannibalization of our existing advertising businesses.

Speaker #3: As a result, we expect AI briefing ads to expand new advertising inventory rather than replace existing search ads. Initial results have also been positive.

Speaker #3: AI Briefing ads delivered a cost per click that was 30% higher than existing search ads, and CTR was also more than 30% higher. Purchase conversion rates improved by more than threefold, demonstrating strong effectiveness from advertisers' perspective.

Speaker #3: In the generative AI era, the key competitive advantage lies in understanding users' intent and context with greater precision, and in connecting them with the most relevant ads in real time.

Soo-Yeon Choi: In the generative AI era, the key competitive advantage lies in understanding user's intent and context with greater precision and connecting them with the most relevant ads in real time. Going forward, we will apply the ranking and recommendation technologies validated through AI advertising across our advertising products, further strengthening the competitiveness of our advertising platform. Second, generative AI is becoming the foundation for increasing transaction value across the platform and expanding long-term monetization opportunities. In particular, the strong purchase conversion rates of AI Briefing ads demonstrates more than just improved advertising efficiency. They show that AI can accurately understand users' intent and connect them to actual purchases and reservations. NAVER is the only full-funnel platform in Korea that seamlessly connects search, shopping, Naver Place, and payments.

Soo-yeon Choi: In the generative AI era, the key competitive advantage lies in understanding user's intent and context with greater precision and connecting them with the most relevant ads in real time. Going forward, we will apply the ranking and recommendation technologies validated through AI advertising across our advertising products, further strengthening the competitiveness of our advertising platform. Second, generative AI is becoming the foundation for increasing transaction value across the platform and expanding long-term monetization opportunities. In particular, the strong purchase conversion rates of AI Briefing ads demonstrates more than just improved advertising efficiency. They show that AI can accurately understand users' intent and connect them to actual purchases and reservations. NAVER is the only full-funnel platform in Korea that seamlessly connects search, shopping, Naver Place, and payments.

Speaker #3: Going forward, we will apply the ranking and recommendation technologies validated through AI advertising across our advertising products, further strengthening the competitiveness of our advertising platform.

Speaker #3: Second, generative AI is becoming the foundation for increasing transaction value across the platform and expanding long-term monetization opportunities. In particular, the strong purchase conversion rates of AI briefing ads demonstrate more than just improved advertising efficiency; they show that AI can accurately understand users' intent and connect them to actual purchases and reservations.

Speaker #3: NAVER is the only full-funnel platform in Korea that seamlessly connects search, shopping, place, and payments. As AI agents become more widely used for everything from exploration to purchases and reservations, we believe this full-funnel structure will become a key growth driver for expanding transaction volume across our platform.

Soo-Yeon Choi: As AI agents become more widely used for everything from exploration to purchases and reservations, we believe this full-funnel structure will become a key growth driver for expanding transaction volume across our platform. AI Briefing ads are the first example of how Actionable AI is creating new monetization opportunities. As AI agents play a greater role in connecting users with services throughout the transaction journey, NAVER will continue to create new monetization opportunities beyond advertising, including commerce and payments. In doing so, we will further expand the value of our platform. Next, let me discuss our commerce business, which continued to drive growth across our services. In Q2, Smart Store GMV grew 15.5% year-on-year, with growth continuing to accelerate.

Soo-yeon Choi: As AI agents become more widely used for everything from exploration to purchases and reservations, we believe this full-funnel structure will become a key growth driver for expanding transaction volume across our platform. AI Briefing ads are the first example of how Actionable AI is creating new monetization opportunities. As AI agents play a greater role in connecting users with services throughout the transaction journey, NAVER will continue to create new monetization opportunities beyond advertising, including commerce and payments. In doing so, we will further expand the value of our platform. Next, let me discuss our commerce business, which continued to drive growth across our services. In Q2, Smart Store GMV grew 15.5% year-on-year, with growth continuing to accelerate.

Speaker #3: AI briefing ads are the first example of how actionable AI is creating new monetization opportunities. As AI agents play a greater role in connecting users with services throughout the transaction journey, NAVER will continue to create new monetization opportunities beyond advertising, including commerce and payments.

Speaker #3: In doing so, we will further expand the value of our platform. Next, let me discuss our commerce business, which continued to drive growth across our services.

Speaker #3: In the second quarter, smart storage GMV grew 15.5% year on year, with growth continuing to accelerate. This was driven by the three engines of the NAVER Plus Store app, membership, and delivery, working together to strengthen the structural competitiveness of NAVER Commerce and deliver solid business results.

Soo-Yeon Choi: This was driven by the three engines of the NAVER Plus store app, membership, and delivery, working together to strengthen the structural competitiveness of the NAVER commerce and deliver solid business results. First, the NAVER Plus store app has firmly established itself as a primary transaction channel for our loyal customers. In Q2, GMV generated through the app grew more than 35% year-on-year, significantly outpacing our overall growth. The app's share of total GMV also continued to increase rapidly. In particular, traffic from returning users is growing at about four times the pace of new user traffic. App users also spend more per visit and make purchases more frequently than web users. This shows that the app's growth is being driven by repeat visits and purchasing habits among our existing customers. Membership is also serving as a strong driver of app growth.

Soo-yeon Choi: This was driven by the three engines of the NAVER Plus store app, membership, and delivery, working together to strengthen the structural competitiveness of the NAVER commerce and deliver solid business results. First, the NAVER Plus store app has firmly established itself as a primary transaction channel for our loyal customers. In Q2, GMV generated through the app grew more than 35% year-on-year, significantly outpacing our overall growth. The app's share of total GMV also continued to increase rapidly. In particular, traffic from returning users is growing at about four times the pace of new user traffic. App users also spend more per visit and make purchases more frequently than web users. This shows that the app's growth is being driven by repeat visits and purchasing habits among our existing customers. Membership is also serving as a strong driver of app growth.

Speaker #3: First, the NAVER Plus Store app has firmly established itself as a primary transaction channel for our loyal customers. In the second quarter, GMV generated through the app grew more than 35% year-over-year, significantly outpacing our overall growth.

Speaker #3: The app's share of total GMV also continued to increase rapidly. In particular, traffic from returning users is growing at about four times the pace of new user traffic.

Speaker #3: App users also spent more per visit and made purchases more frequently than web users. This shows that the app's growth is being driven by repeat visits and purchasing habits among our existing customers.

Speaker #3: Membership is also serving as a strong driver of app growth. About 80% of customers who make purchases through the app are membership subscribers. Following the expansion of free shipping and free returns, the purchase frequency of end delivery membership customers increased by about 29%, and their share of transactions exceeded 70%.

Soo-Yeon Choi: About 80% of customers who make purchases through the app are membership subscribers. Following the expansion of free shipping and free returns, the purchase frequency of N Delivery membership customers increased by about 29%, and their share of transactions exceeded 70%. As membership has proven to be a key driver of transaction growth, we plan to accelerate the expansion of our membership base. To support this, we will broaden our everyday lifestyle partnerships and expand offline payment benefits. Our goal is to make membership a core pillar that connects the entire NAVER ecosystem. The most notable achievement in commerce this quarter is that our stronger delivery capabilities are directly driving both user purchases and seller growth. As of June, N Delivery GMV on Smart Store increased 76% year-on-year. Coverage also exceeded 20%, keeping us on track to reach our year-end target of 25%.

Soo-yeon Choi: About 80% of customers who make purchases through the app are membership subscribers. Following the expansion of free shipping and free returns, the purchase frequency of N Delivery membership customers increased by about 29%, and their share of transactions exceeded 70%. As membership has proven to be a key driver of transaction growth, we plan to accelerate the expansion of our membership base. To support this, we will broaden our everyday lifestyle partnerships and expand offline payment benefits. Our goal is to make membership a core pillar that connects the entire NAVER ecosystem. The most notable achievement in commerce this quarter is that our stronger delivery capabilities are directly driving both user purchases and seller growth. As of June, N Delivery GMV on Smart Store increased 76% year-on-year. Coverage also exceeded 20%, keeping us on track to reach our year-end target of 25%.

Speaker #3: As membership has proven to be a key driver of transaction growth, we plan to accelerate the expansion of our membership base. To support this, we will broaden our everyday lifestyle partnerships and expand offline payment benefits.

Speaker #3: Our goal is to make membership a core pillar that connects the entire NAVER ecosystem. The most notable achievement in commerce this quarter is that our stronger delivery capabilities are directly driving both user purchases and seller growth.

Speaker #3: As of June, end-delivery GMV on Smart Store increased 76% year-on-year. Coverage also exceeded 20%, keeping us on track to reach our year-end target of 25%.

Speaker #3: In addition, the average GMV of end delivery sellers grew significantly—more than that of other sellers—in the second quarter. This demonstrates that delivery is not only increasing purchase conversions and repeat purchases, but also serving as a meaningful growth driver for sellers by helping them expand their transactional volume.

Soo-Yeon Choi: In addition, the average GMV of N Delivery sellers grew significantly, more than that of other sellers in Q2. This demonstrates that delivery is not only increasing purchase conversions and repeat purchases but also serving as a meaningful growth driver for sellers by helping them expand their transactional volume. Our three strategies for expanding N Delivery are also progressing as planned. First, we are supporting sellers of core products with high delivery sensitivity. This is lowering the initial barriers to adopting N Delivery and helping expand both participating products and sellers. Second, we are expanding direct contracts between NAVER and sellers. The scale of these direct contracts have increased by more than fourfold year-on-year, and we will remain on track to achieve our goal of raising the share of this direct contract to more than 50 by year-end.

Soo-yeon Choi: In addition, the average GMV of N Delivery sellers grew significantly, more than that of other sellers in Q2. This demonstrates that delivery is not only increasing purchase conversions and repeat purchases but also serving as a meaningful growth driver for sellers by helping them expand their transactional volume. Our three strategies for expanding N Delivery are also progressing as planned. First, we are supporting sellers of core products with high delivery sensitivity. This is lowering the initial barriers to adopting N Delivery and helping expand both participating products and sellers. Second, we are expanding direct contracts between NAVER and sellers. The scale of these direct contracts have increased by more than fourfold year-on-year, and we will remain on track to achieve our goal of raising the share of this direct contract to more than 50 by year-end.

Speaker #3: Our three strategies for expanding end delivery are also progressing as planned. First, we are supporting sellers of core products with high delivery sensitivity. This is lowering the initial barriers to adopting end delivery and helping expand both participating products and sellers.

Speaker #3: Second, we are expanding direct contracts between NAVER and sellers. The scale of these direct contracts has increased by more than fourfold year over year, and we remain on track to achieve our goal of raising the share of these direct contracts to more than 50% by year-end.

Speaker #3: As we expand these direct contracts, we are standardizing logistics terms and operating standards that were previously fragmented. This also provides the foundation for more competitive pricing and more consistent delivery quality.

Soo-Yeon Choi: As we expand these direct contracts, we are standardizing logistics terms and operating standards that were previously fragmented. This also provides the foundation for more competitive pricing and more consistent delivery quality. In addition, we are reducing sellers' operational burden by improving return settlement and order management. This enables even small and medium-sized sellers to easily leverage high-quality delivery services. Third, we are strengthening delivery benefits through membership. Starting in October, we will support faster returns through a dedicated membership return center and officially launch a dedicated early morning delivery service. Just as our enhanced delivery benefits have led to higher purchase frequency and a greater share of transactions among membership customers, we expect that these new benefits in October to further strengthen the virtuous flywheel between the membership and end delivery while accelerating end delivery growth in the H2 of the year.

Soo-yeon Choi: As we expand these direct contracts, we are standardizing logistics terms and operating standards that were previously fragmented. This also provides the foundation for more competitive pricing and more consistent delivery quality. In addition, we are reducing sellers' operational burden by improving return settlement and order management. This enables even small and medium-sized sellers to easily leverage high-quality delivery services. Third, we are strengthening delivery benefits through membership. Starting in October, we will support faster returns through a dedicated membership return center and officially launch a dedicated early morning delivery service. Just as our enhanced delivery benefits have led to higher purchase frequency and a greater share of transactions among membership customers, we expect that these new benefits in October to further strengthen the virtuous flywheel between the membership and end delivery while accelerating end delivery growth in the H2 of the year.

Speaker #3: In addition, we are reducing sellers' operational burden by improving returns, settlement, and order management. This enables even small and medium-sized sellers to easily leverage high-quality delivery services.

Speaker #3: Third, we are strengthening delivery benefits through membership. Starting in October, we will support faster returns through a dedicated membership return center and officially launch a dedicated early morning delivery service.

Speaker #3: Just as our enhanced delivery benefits have led to higher purchase frequency and a greater share of transactions among membership customers, we expect that these new benefits in October will further strengthen the virtuous flywheel between membership and end delivery, while accelerating end delivery growth in the second half of the year.

Speaker #3: NAVER will continue to have the app drive discovery and exploration, memberships drive customer engagement across the NAVER ecosystem, and delivery drive purchase conversion and repeat purchases, further strengthening the virtuous flywheel.

Soo-Yeon Choi: NAVER will continue to have the app drive discovery and exploration, memberships drive customer engagement across the NAVER ecosystem, and delivery drive purchase conversion and repeat purchases, further strengthening the virtuous flywheel. Next, I will talk about the financial platform. In the Q2, NAVER rapidly expanded the installation of N Pay Connect payment devices, marking our full-scale entry into business of AI platform for business owners by connecting offline data with the NAVER ecosystem. The purpose of Connect is to extend the success formula that NAVER has built online through search, data, advertising, shopping, and payments into the offline world while establishing NAVER's physical touchpoints there. Starting this year, we plan to rapidly increase market penetration and establish a leading position. Through this, we aim to proactively secure a competitive advantage in data based on offline business owners that will be difficult for competitors to replicate.

Soo-yeon Choi: NAVER will continue to have the app drive discovery and exploration, memberships drive customer engagement across the NAVER ecosystem, and delivery drive purchase conversion and repeat purchases, further strengthening the virtuous flywheel. Next, I will talk about the financial platform. In the Q2, NAVER rapidly expanded the installation of N Pay Connect payment devices, marking our full-scale entry into business of AI platform for business owners by connecting offline data with the NAVER ecosystem. The purpose of Connect is to extend the success formula that NAVER has built online through search, data, advertising, shopping, and payments into the offline world while establishing NAVER's physical touchpoints there. Starting this year, we plan to rapidly increase market penetration and establish a leading position. Through this, we aim to proactively secure a competitive advantage in data based on offline business owners that will be difficult for competitors to replicate.

Speaker #3: Next, I will talk about the Financial Platform. In the second quarter, NAVER rapidly expanded the installation of N Pay Connect payment devices, marking our full-scale entry into the business of AI platforms for business owners by connecting offline data with the NAVER ecosystem.

Speaker #3: The purpose of Connect is to extend the success formula NAVER has built online through search, data, advertising, shopping, and payments into the offline world, while establishing NAVER's physical touchpoints there.

Speaker #3: Starting this year, we plan to rapidly increase market penetration and establish a leading position. Through this, we aim to proactively secure a competitive advantage in data based on offline business owners that will be difficult for competitors to replicate.

Speaker #3: The offline commerce payments market is more than three times larger than the online market, yet it remains insufficiently digitized. Its data is not yet well structured, and it remains disconnected from the online ecosystem.

Soo-Yeon Choi: The offline commerce payments market is more than three times larger than the online market, yet it remains insufficiently digitized, its data is not yet well-structured, and it remains disconnected from the online ecosystem. NAVER therefore sees this as a business opportunity with significant growth potential and a strategic area that must be secured early. Based on this view, we have accelerated our rollout schedule, which was originally planned to be phased out throughout next year. As a result, just seven months after the launch, N Pay Connect has already secured more than active business owners than expected and continues to expand rapidly. There are three main reasons why NAVER is investing in N Pay Connect. First, offline data will become a key asset that strengthens the competitiveness of the entire NAVER ecosystem.

Soo-yeon Choi: The offline commerce payments market is more than three times larger than the online market, yet it remains insufficiently digitized, its data is not yet well-structured, and it remains disconnected from the online ecosystem. NAVER therefore sees this as a business opportunity with significant growth potential and a strategic area that must be secured early. Based on this view, we have accelerated our rollout schedule, which was originally planned to be phased out throughout next year. As a result, just seven months after the launch, N Pay Connect has already secured more than active business owners than expected and continues to expand rapidly. There are three main reasons why NAVER is investing in N Pay Connect. First, offline data will become a key asset that strengthens the competitiveness of the entire NAVER ecosystem.

Speaker #3: NAVER therefore sees this as a business opportunity with significant growth potential and a strategic area that must be secured early. Based on this view, we have accelerated our rollout schedule, which was originally planned to be phased out throughout next year, as a result.

Speaker #3: The seven months after the launch, an end pay connect has already secured more than active business owners than expected as continues and continues to expand rapidly.

Speaker #3: There are three main reasons why NAVER is investing in End Pay Connect. First, offline data will become a key asset that strengthens the competitiveness of the entire NAVER ecosystem.

Speaker #3: As AI evolves beyond providing information and recommendations to understanding users' intent and carrying out reservations, orders, and payments, offline behavior data will become an essential asset rather than an optional one.

Soo-Yeon Choi: As AI evolves beyond providing informational recommendations to understanding user's intent and carrying out reservations, orders, and payments, offline behavior data will become an essential asset rather than an optional one. Nationwide touchpoints with users' everyday activities, including store visits, order history, responses to promotions, and payment methods, combined with NAVER's unique online data will become a key asset that serves as a moat in the AI era. NAVER plans to combine place search and reservation data, user's ID, payment, and membership data with the offline data collected through N Pay Connect. This will connect the entire online offline journey from search to reservations, orders, payments, and repeat visits under a single ID. Through this, AI agents, including NAVER AI tab, will be able to deliver more sophisticated personalization and more complete execution. Our advertising capabilities will also become more sophisticated.

Soo-yeon Choi: As AI evolves beyond providing informational recommendations to understanding user's intent and carrying out reservations, orders, and payments, offline behavior data will become an essential asset rather than an optional one. Nationwide touchpoints with users' everyday activities, including store visits, order history, responses to promotions, and payment methods, combined with NAVER's unique online data will become a key asset that serves as a moat in the AI era. NAVER plans to combine place search and reservation data, user's ID, payment, and membership data with the offline data collected through N Pay Connect. This will connect the entire online offline journey from search to reservations, orders, payments, and repeat visits under a single ID. Through this, AI agents, including NAVER AI tab, will be able to deliver more sophisticated personalization and more complete execution. Our advertising capabilities will also become more sophisticated.

Speaker #3: Nationwide touchpoints with users' everyday activities—including store visits, order history, responses to promotions, and payment methods—combined with NAVER's unique online data, will become a key asset that serves as a moat in the AI era.

Speaker #3: NAVER plans to combine place search and reservation data, users' ID, payments, and membership data, with the offline data collected through End Pay Connect. This will connect the entire online/offline journey from search to reservations, orders, payments, and repeat visits under a single ID.

Speaker #3: And through this, AI agents, including NAVER AI Tab, will be able to deliver more sophisticated personalization and more complete execution. Our advertising capabilities will also become more sophisticated.

Speaker #3: Second, it will create a new monetization opportunity based on the business owners' touchpoints we are establishing, including business owner solutions and financial solution services for our business providers.

Soo-Yeon Choi: Second, it will create a new monetization opportunity based on the business owner's touch points we are establishing, including business owner solutions and financial services for our business providers. We plan to evolve Npay Connect beyond a simple payment device into an agent for business owners that analyzes sales, visitor traffic, changes in the commercial district, while recommending the next actions, such as coupons and promotions. Just as Smart Store became the foundation for online business owners, our goal is to provide offline business owners with a new AI platform centered on Place and Npay Connect, integrating reservations, orders, payments, customer management, and marketing. Monetization will be rolled out in phases. In the initial stage, we will expand our business owner touch points by integrating Npay Connect with Place.

Soo-yeon Choi: Second, it will create a new monetization opportunity based on the business owner's touch points we are establishing, including business owner solutions and financial services for our business providers. We plan to evolve Npay Connect beyond a simple payment device into an agent for business owners that analyzes sales, visitor traffic, changes in the commercial district, while recommending the next actions, such as coupons and promotions. Just as Smart Store became the foundation for online business owners, our goal is to provide offline business owners with a new AI platform centered on Place and Npay Connect, integrating reservations, orders, payments, customer management, and marketing. Monetization will be rolled out in phases. In the initial stage, we will expand our business owner touch points by integrating Npay Connect with Place.

Speaker #3: We plan to evolve End Pay Connect beyond a simple payment device into an agent for business owners that analyzes sales, visitor traffic, and changes in the commercial district, while recommending next actions, such as coupons and promotions.

Speaker #3: Just as Smart Store became the foundation for online business owners, our goal is to provide offline business owners with a new AI platform centered on Place and End Pay Connect, integrating reservations, orders, payments, customer management, and marketing.

Speaker #3: Monetization will be rolled out in phases. In the initial stage, we will begin to expand our business owner touchpoints by integrating End Pay Connect with Place.

Speaker #3: We will enhance CRM, customer analytics, commercial area analytics, coupon and promotional management, and store operation tools to create new monetization opportunities, including business owner solutions.

Paul Choi: We will enhance CRM, customer analytics, commercial area analytics, coupon and promotional management, and store operation tools to create new monetization opportunities, including business owner solutions. We will further expand our revenue streams by adding financial intermediation services such as loans and insurance, powered by business owner sales and customer data, as well as new advertising products based on offline visit and purchase conversion data. Third, it will allow us to significantly expand the scale of our offline payments and build a new revenue base. By establishing one of the largest business owner networks in Korea, we aim to become the clear market leader in domestic B2C payment volume, combining both online and offline transaction as early as next year. We also aim to expand the offline payment volume based on NAVER IDs to KRW 130 trillion within the next five years.

Soo-yeon Choi: We will enhance CRM, customer analytics, commercial area analytics, coupon and promotional management, and store operation tools to create new monetization opportunities, including business owner solutions. We will further expand our revenue streams by adding financial intermediation services such as loans and insurance, powered by business owner sales and customer data, as well as new advertising products based on offline visit and purchase conversion data. Third, it will allow us to significantly expand the scale of our offline payments and build a new revenue base. By establishing one of the largest business owner networks in Korea, we aim to become the clear market leader in domestic B2C payment volume, combining both online and offline transaction as early as next year. We also aim to expand the offline payment volume based on NAVER IDs to KRW 130 trillion within the next five years.

Speaker #3: We will further expand our revenue streams by adding financial intermediation services, such as loans and insurance, powered by business owner sales and customer data, as well as new advertising products.

Speaker #3: Based on offline visit and purchase conversion data. Third, it will allow us to significantly expand the scale of our offline payments and build a new revenue base.

Speaker #3: By establishing one of the largest business owner networks in Korea, we aim to become the clear market leader in domestic B2C payment volume, combining both online and offline transactions as early as next year.

Speaker #3: We also aim to expand the offline payment volume based on NAVER IDs to 130 trillion Korean won within the next five years. This will broaden our payment fee revenue base, while also expanding the foundation that connects user IDs, memberships, reservations and orders, advertising, and financial services.

Soo-Yeon Choi: This will broaden our payment fee revenue base, while also expanding the foundation that connects user IDs, memberships, reservations and orders, advertising, and financial services. On top of this, we will introduce a wide range of monetization models linked to Connect. Once the initial foundation is in place, our cost burden will gradually decline while monetization opportunities across payments, advertising, business owner solutions, and financial services will expand rapidly. The AI platform businesses for business owners, which connects offline data with the NAVER ecosystem, is an area where NAVER's strengths can be fully leveraged. Going forward, we will secure business owner touch points and a data foundation early and quickly demonstrate profitability by connecting them to a wide range of monetization models. Our global expansion business, one of NAVER's new growth engines, delivered strong growth in 24.4% year-on-year in Q2.

Soo-yeon Choi: This will broaden our payment fee revenue base, while also expanding the foundation that connects user IDs, memberships, reservations and orders, advertising, and financial services. On top of this, we will introduce a wide range of monetization models linked to Connect. Once the initial foundation is in place, our cost burden will gradually decline while monetization opportunities across payments, advertising, business owner solutions, and financial services will expand rapidly. The AI platform businesses for business owners, which connects offline data with the NAVER ecosystem, is an area where NAVER's strengths can be fully leveraged. Going forward, we will secure business owner touch points and a data foundation early and quickly demonstrate profitability by connecting them to a wide range of monetization models. Our global expansion business, one of NAVER's new growth engines, delivered strong growth in 24.4% year-on-year in Q2.

Speaker #3: On top of this, we will introduce a wide range of monetization models linked to Connect. Once the initial foundation is in place, our cost burden will gradually decline, while monetization opportunities across payments, advertising, business owner solutions, and financial services will expand rapidly.

Speaker #3: The AI platform businesses for business owners, which connects offline data with the NAVER ecosystem, is an area where NAVER's strengths can be fully leveraged. Going forward, we will secure business owner touchpoints and a data foundation early.

Speaker #3: And quickly demonstrate profitability by connecting them to a wide range of monetization models. Our global expansion business, one of NAVER's new growth engines, delivered strong growth of 24.4% year-on-year in the second quarter.

Speaker #3: In particular, our C2C business continued to deliver strong GMV and revenue growth, driven by the strengthening competitiveness of the overseas platforms we have invested in, including Poshmark, SODA, and Wallapop. In our enterprise business, the digital twin platform developed by our joint venture in Saudi Arabia has been selected as the Ministry of Municipality and Housing's single national standard platform. Development is also underway, with a goal of launching a map-based super app later this year.

Soo-Yeon Choi: In particular, our C2C business continued to deliver strong GMV and revenue growth, driven by the strengthening competitiveness of the overseas platform we have invested in, including Poshmark, SODA, and Wallapop. In our enterprise business, the digital twin platform developed by our joint venture in Saudi Arabia has been selected as the Ministry of Municipality and Housing's single national standard platform. Development is also underway with a goal of launching a map-based super app later this year. NAVER will continue to strengthen the AI competitiveness of its core business while securing new growth engines through AI Factory to create even greater growth opportunities. Now, CFO Hee-Chul Kim will discuss about the financial performance. Good morning. This is Hee-Chul Kim, the CFO. I will now walk you through Q2 financial performance.

Soo-yeon Choi: In particular, our C2C business continued to deliver strong GMV and revenue growth, driven by the strengthening competitiveness of the overseas platform we have invested in, including Poshmark, SODA, and Wallapop. In our enterprise business, the digital twin platform developed by our joint venture in Saudi Arabia has been selected as the Ministry of Municipality and Housing's single national standard platform. Development is also underway with a goal of launching a map-based super app later this year. NAVER will continue to strengthen the AI competitiveness of its core business while securing new growth engines through AI Factory to create even greater growth opportunities. Now, CFO Hee-Chul Kim will discuss about the financial performance.

Speaker #3: NAVER will continue to strengthen the AI competitiveness of this core business while securing new growth engines through the AI factory to create even greater growth opportunities.

Speaker #3: Now, CFO Hee Choi Kim will discuss the financial performance. Good morning. This is Hee Choi Kim, the CFO. I will now walk you through Q2 financial performance.

Hee-cheol Kim: Good morning. This is Hee-Chul Kim, the CFO. I will now walk you through Q2 financial performance.

Speaker #3: In Q2, revenue reached 3.39 trillion Korean won, up 16.2% year-on-year, driven by strong growth of the global C2C business and the performance of the shopping business.

Hee-Chul Kim: In Q2, revenue reached KRW 3.388 trillion, up 16.2% year-on-year, driven by strong growth of the global C2C business and the performance of the shopping business. As a result of one-off expenses, including deploying Npay Connect devices and recognizing strategic IPs, such as broadcasting rights for the World Cup, as well as planned infrastructure investments such as GPU purchases, operating profits for Q2 recorded KRW 520.3 billion, remaining similar to the same period last year with an operating margin of 15.4%. Before diving into the details, I would like to note that starting this quarter, NAVER has changed the useful life of computing assets such as GPUs and CPUs from 5 years to 6 years to reflect their actual utilization periods more accurately on our financial statements.

Hee-cheol Kim: In Q2, revenue reached KRW 3.388 trillion, up 16.2% year-on-year, driven by strong growth of the global C2C business and the performance of the shopping business. As a result of one-off expenses, including deploying Npay Connect devices and recognizing strategic IPs, such as broadcasting rights for the World Cup, as well as planned infrastructure investments such as GPU purchases, operating profits for Q2 recorded KRW 520.3 billion, remaining similar to the same period last year with an operating margin of 15.4%. Before diving into the details, I would like to note that starting this quarter, NAVER has changed the useful life of computing assets such as GPUs and CPUs from 5 years to 6 years to reflect their actual utilization periods more accurately on our financial statements.

Speaker #3: As a result of one-off expenses, including deploying End Pay Connect devices and recognizing strategic IPs, such as broadcasting rights for the World Cup, as well as planned infrastructure investments, such as GPU purchases, operating profits for Q2 recorded ₩520.3 billion, remaining similar to the same period last year, with an operating margin of 15.4%.

Speaker #3: Before diving into the details, I would like to note that starting this quarter, NAVER has changed the useful life of computing assets, such as GPUs and CPUs, from five years to six years to reflect their actual utilization period more accurately on our financial statements.

Speaker #3: Based on our long-term data analysis, the actual average useful life of computing assets was longer than the existing depreciation schedule, which led to its extension.

Hee-Chul Kim: Based on our long-term data analysis, the actual average useful life of computing assets was longer than the existing depreciation schedule, which led to its extension. Moreover, the useful life extent schedules that differed across asset types were unified, and it is expected to generate an expense deferral benefit of around KRW 100 billion. For reference, excluding one-off factors such as the impact of consolidating Wallapop, Npay Connect, broadcasting rights, and changing of the useful life period, Q2 operating profit increased 0.9% year-on-year. Next, I will explain about the revenue by business segment. In Q2, NAVER Platform revenue increased 12.3% year-on-year, driven by strong performance in commerce and consistent efforts to optimize and enhance advertising efficiency. Advertising revenue recorded KRW 1.4472 trillion, a 7.5% growth year-on-year.

Hee-cheol Kim: Based on our long-term data analysis, the actual average useful life of computing assets was longer than the existing depreciation schedule, which led to its extension. Moreover, the useful life extent schedules that differed across asset types were unified, and it is expected to generate an expense deferral benefit of around KRW 100 billion. For reference, excluding one-off factors such as the impact of consolidating Wallapop, Npay Connect, broadcasting rights, and changing of the useful life period, Q2 operating profit increased 0.9% year-on-year. Next, I will explain about the revenue by business segment. In Q2, NAVER Platform revenue increased 12.3% year-on-year, driven by strong performance in commerce and consistent efforts to optimize and enhance advertising efficiency. Advertising revenue recorded KRW 1.4472 trillion, a 7.5% growth year-on-year.

Speaker #3: Moreover, the useful life schedules that differed across asset types were unified, and it is expected to generate an expense deferral benefit of around ₩100 billion.

Speaker #3: For reference, excluding one-off factors such as the impact of consolidating Wallapop, end Pay Connect, broadcasting rights, and changes in the useful life period, second quarter operating profit increased 0.9% year-on-year.

Speaker #3: Next, I will explain about the revenue by business segments. In Q2, NAVER Platform revenue increased 12.3% year-on-year, driven by strong performance in commerce and consistent efforts to optimize and enhance advertising efficiency.

Speaker #3: Advertising revenue recorded 1.4472 trillion Korean won, a 7.5% growth year on year. NAVER continues to refine its ad performance prediction and targeting models across various industries and placements, while expanding AI-driven ad optimization.

Hee-Chul Kim: NAVER continues to refine its ad performance prediction in our targeting models across various industries and placements while expanding AI-driven ad optimization. As a result, AI serves as a key growth driver for the advertising business, contributing more than 60% of incremental ad revenue in the second quarter. In particular, powered by its product enhancements, the paying advertiser base for ADVoost Shopping grew more than 2.5-fold year-on-year. Going forward, we will continue to improve ad efficiency and targeting based on our integrated recommendation model while expanding new ad opportunities across generative AI services. Q2 service revenue increased 31.3% year-on-year to KRW 455 billion, powered by strong growth in commerce. Smart Store GMV in Q2 rose 15.5% year-on-year, owing to the virtuous cycle among our app membership and delivery services.

Hee-cheol Kim: NAVER continues to refine its ad performance prediction in our targeting models across various industries and placements while expanding AI-driven ad optimization. As a result, AI serves as a key growth driver for the advertising business, contributing more than 60% of incremental ad revenue in the second quarter. In particular, powered by its product enhancements, the paying advertiser base for ADVoost Shopping grew more than 2.5-fold year-on-year. Going forward, we will continue to improve ad efficiency and targeting based on our integrated recommendation model while expanding new ad opportunities across generative AI services. Q2 service revenue increased 31.3% year-on-year to KRW 455 billion, powered by strong growth in commerce. Smart Store GMV in Q2 rose 15.5% year-on-year, owing to the virtuous cycle among our app membership and delivery services.

Speaker #3: As a result, AI serves as a key growth driver for the advertising business, contributing more than 30–60% of incremental ad revenue in the second quarter.

Speaker #3: In particular, powered by product enhancements, the paying advertiser base for Ad Booth Shopping grew more than 2.5-fold year on year. Going forward, we will continue to improve ad efficiency and targeting based on our integrator recommendation model, while expanding new ad opportunities across generative AI services.

Speaker #3: Q2 service revenue increased 31.3% year on year, to 455 billion Korean won, powered by strong growth in commerce. Smart Store GMV in Q2 rose 15.5% year on year, owing to the virtuous cycle among our app, membership, and delivery services.

Speaker #3: In June, the synergies from Samsung's Customer Appreciation and the NAVER Plus sale promotion have materialized, and NAVER's exclusive new products and brand-collaborated products received strong positive responses, contributing to the quarterly GMV growth.

Hee-Chul Kim: In June, the synergies from Samsung's customer appreciation and the NAVER Plus sale promotion have materialized, and NAVER's exclusive new products and brand-collaborative products received strong positive responses, contributing to the quarterly GMV growth. Membership revenue also recorded solid growth, supported by strengthened delivery benefits and inflow of new members driven by the World Cup. Next, Q2 financial platform revenue increased 16% year-on-year to KRW 470.7 billion. Supported by Smart Store growth and expansion of external ecosystems, the total payment volume grew 21% year-on-year to KRW 25.2 trillion in the second quarter. Of the total, off-platform payment volume increased by 26.2% year-on-year to KRW 14.1 trillion and continues to account for 56% of the total payment volume. In Q2, revenue from global growth areas increased 24.4% year-on-year to KRW 1.159 trillion.

Hee-cheol Kim: In June, the synergies from Samsung's customer appreciation and the NAVER Plus sale promotion have materialized, and NAVER's exclusive new products and brand-collaborative products received strong positive responses, contributing to the quarterly GMV growth. Membership revenue also recorded solid growth, supported by strengthened delivery benefits and inflow of new members driven by the World Cup. Next, Q2 financial platform revenue increased 16% year-on-year to KRW 470.7 billion. Supported by Smart Store growth and expansion of external ecosystems, the total payment volume grew 21% year-on-year to KRW 25.2 trillion in the second quarter. Of the total, off-platform payment volume increased by 26.2% year-on-year to KRW 14.1 trillion and continues to account for 56% of the total payment volume. In Q2, revenue from global growth areas increased 24.4% year-on-year to KRW 1.159 trillion.

Speaker #3: Membership revenue also recorded solid growth, supported by strengthened delivery benefits and the inflow of new members driven by the World Cup. Next, Q2 financial platform revenue increased 16% year-on-year, to 470.7 billion Korean won.

Speaker #3: Supported by smart store growth and expansion of external ecosystems, the total payment volume grew 21% year on year to 25.2 trillion Korean won in the second quarter.

Speaker #3: Of the total, off-platform payment volume increased by 26.2% year-on-year to 14.1 trillion Korean won, and continues to account for 56% of the total payment volume.

Speaker #3: In Q2, revenue from global growth areas increased 24.4% year on year, to 1.159 trillion Korean won. In the C2C segment, revenue grew 74.9% year on year, with ongoing efforts to strengthen core platform competitiveness translating into solid performance.

Hee-Chul Kim: In the C2C segment, revenue grew 74.9% year on year, with ongoing efforts to strengthen core platform competitiveness translated into solid performance. Poshmark saw significant improvements in purchase conversion and purchase frequency, driven by quality improvements in AI-powered search and recommendation, and recorded over 40% in revenue growth year on year. SODA delivered record-high earnings, with both revenue and GMV growing more than twofold year on year, driven by ongoing boom in trading card transactions. Wallapop continues to achieve GMV growth that outpaces the growth in the Spanish retail market, supported by the growth of the European C2C market, as well as efforts to stimulate platform transaction activities, such as launching local delivery services and personalizing the home feeds of their app. At the same time, while the public is expanding its market leadership centering around the used car category, which holds top position in number one registered listings.

Hee-cheol Kim: In the C2C segment, revenue grew 74.9% year on year, with ongoing efforts to strengthen core platform competitiveness translated into solid performance. Poshmark saw significant improvements in purchase conversion and purchase frequency, driven by quality improvements in AI-powered search and recommendation, and recorded over 40% in revenue growth year on year. SODA delivered record-high earnings, with both revenue and GMV growing more than twofold year on year, driven by ongoing boom in trading card transactions. Wallapop continues to achieve GMV growth that outpaces the growth in the Spanish retail market, supported by the growth of the European C2C market, as well as efforts to stimulate platform transaction activities, such as launching local delivery services and personalizing the home feeds of their app. At the same time, while the public is expanding its market leadership centering around the used car category, which holds top position in number one registered listings.

Speaker #3: Poshmark saw significant improvements in purchase conversion and purchase frequency, driven by quality improvements in AI-powered search and recommendation, and recorded over 40% revenue growth year on year.

Speaker #3: Soda delivered record-high earnings, with both revenue and GMV growing more than twofold year on year, driven by the ongoing boom in trading card transactions.

Speaker #3: Wallapop continues to achieve GMV growth that outpaces the growth in the Spanish retail market, supported by the growth of the European C2C market, as well as efforts to stimulate platform transaction activities, such as launching local delivery services and personalizing the home feeds of their app.

Speaker #3: At the same time, Wallapop is expanding its market leadership, centering around the used car category, which holds the top position and number one in registered listings.

Speaker #3: Content revenue increased by 0.5% year on year to ₩464.3 billion in Q2. Within this segment, web team revenue increased by 0.9% year on year.

Hee-Chul Kim: Content revenue increased by 0.5% year on year to KRW 464.3 billion in Q2. Within this segment, Webtoon revenue increased by 0.9% year on year on a KRW reported consolidated basis. For more details, please refer to the Webtoon Entertainment earnings announcement scheduled for 10 August, local time. In 2026, NAVER Webtoon plans to focus on content diversification and strengthen personalized recommendations while also expanding its user base through new services and initiatives. Snow will continue to expand AI-powered product offerings and work to improve profitability. Enterprise revenue increased by 21.3% year on year to KRW 153.7 billion in Q2, driven by sustained B2B revenue from AI initiatives, including the GPU-as-a-service deal secured in the H2 of last year.

Hee-cheol Kim: Content revenue increased by 0.5% year on year to KRW 464.3 billion in Q2. Within this segment, Webtoon revenue increased by 0.9% year on year on a KRW reported consolidated basis. For more details, please refer to the Webtoon Entertainment earnings announcement scheduled for 10 August, local time. In 2026, NAVER Webtoon plans to focus on content diversification and strengthen personalized recommendations while also expanding its user base through new services and initiatives. Snow will continue to expand AI-powered product offerings and work to improve profitability. Enterprise revenue increased by 21.3% year on year to KRW 153.7 billion in Q2, driven by sustained B2B revenue from AI initiatives, including the GPU-as-a-service deal secured in the H2 of last year.

Speaker #3: On a Korean won-reported consolidated basis. For more details, please refer to Webtoon Entertainment's earnings announcement scheduled for August 10th, local time.

Speaker #3: In 2026, the NAVER web team plans to focus on content diversification and strengthening personalized recommendations, while also expanding its user base through new services and initiatives.

Speaker #3: Snow will continue to expand AI-powered product offerings and work to improve profitability. Enterprise revenue increased by 21.3% year on year, to 153.7 billion Korean won in Q2, driven by sustained B2B revenue from AI initiatives, including the GPU as a service deal secured in the second half of last year.

Speaker #3: In Q2, revenue posted solid growth as new cloud-based AI businesses, with Korea Hydro & Nuclear Power and Bank of Korea, transitioned from the implementation to the operation and expansion phase.

Hee-Chul Kim: In Q2, revenue posted solid growth as new cloud-based AI businesses with Korea Hydro & Nuclear Power and Bank of Korea transitioned from implementation to the operation and expansion phase, and discussions regarding new adoption within the financial sectors are also continuing. Technological capabilities for robotics accumulated in the 1784 building was applied to the Tokyo Midtown Yaesu building in Japan in partnership with NTT East and Mitsui Fudosan, creating a first external commercialization use of Team NAVER's technology. In the case of LINE WORKS, the number of new paid user IDs greatly increased during Q2, which was driven by securing large-scale deals, further solidifying its number 1 position in the business messenger market. In April, CLOVA CareCall was officially launched in Japan by entering into an agreement with the city of Izumo and is garnering attention from many local governments and public institutions.

Hee-cheol Kim: In Q2, revenue posted solid growth as new cloud-based AI businesses with Korea Hydro & Nuclear Power and Bank of Korea transitioned from implementation to the operation and expansion phase, and discussions regarding new adoption within the financial sectors are also continuing. Technological capabilities for robotics accumulated in the 1784 building was applied to the Tokyo Midtown Yaesu building in Japan in partnership with NTT East and Mitsui Fudosan, creating a first external commercialization use of Team NAVER's technology. In the case of LINE WORKS, the number of new paid user IDs greatly increased during Q2, which was driven by securing large-scale deals, further solidifying its number 1 position in the business messenger market. In April, CLOVA CareCall was officially launched in Japan by entering into an agreement with the city of Izumo and is garnering attention from many local governments and public institutions.

Speaker #3: Discussions regarding new adoptions within the financial sectors are also continuing. Technological capabilities for robotics, which have accumulated in the 1784 building, were applied to the Tokyo Midtown Yaesu building in Japan, in partnership with NTT East and Mitsui Fudosan, creating the first external commercialization use of Team NAVER's technology.

Speaker #3: In the case of LINE Works, the number of new paid user IDs greatly increased during Q2, which was driven by securing large-scale deals. Further solidifying its number one position in the business messenger market, in April, ClovaCare Call was officially launched in Japan by entering into an agreement with the city of Izumo, and is garnering attention from many local governments and public institutions.

Speaker #3: In the Taiwanese market, which we entered in late last year, it was successfully taking root, with more than 100 companies confirming to adopt its services.

Hee-Chul Kim: In the Taiwanese market, where we entered in late last year, it was successfully taking root with more than 100 companies confirming to adopt its services. Next is the detailed cost items. Development and operations expenses increased 15.2% year on year with the impact of consolidating Wallapop. Partner expenses rose 22% year on year, driven by higher commission expenses in line with revenue growth, quick recognition of content rights costs, including World Cup, and expanded deployment of N Pay Connect devices. Infrastructure expenses increased 11.2% year on year as the effect of a changed useful life was reflected, even amidst continued expansion in computing asset investments. Marketing expenses rose 25.4% year on year, driven by strategic marketing investments in the commerce segment, as well as higher promotional spending for N Pay Connect.

Hee-cheol Kim: In the Taiwanese market, where we entered in late last year, it was successfully taking root with more than 100 companies confirming to adopt its services. Next is the detailed cost items. Development and operations expenses increased 15.2% year on year with the impact of consolidating Wallapop. Partner expenses rose 22% year on year, driven by higher commission expenses in line with revenue growth, quick recognition of content rights costs, including World Cup, and expanded deployment of N Pay Connect devices. Infrastructure expenses increased 11.2% year on year as the effect of a changed useful life was reflected, even amidst continued expansion in computing asset investments. Marketing expenses rose 25.4% year on year, driven by strategic marketing investments in the commerce segment, as well as higher promotional spending for N Pay Connect.

Speaker #3: Next is the detailed cost items. Development and operations expenses increased 15.2% year-on-year, with the impact of consolidating Wallapop partner expenses, which rose 22% year-on-year, driven by higher commission expenses.

Speaker #3: In line with revenue growth, recognition of content rights costs—including the World Cup—and expanded deployment of end pay connect devices, infrastructure expenses increased 11.2% year-on-year, as the effect of a changed useful life was reflected, even amidst continued expansion in computing asset investments.

Speaker #3: Marketing expenses rose 25.4% year-on-year, driven by strategic marketing investments in the Commerce segment, as well as higher promotional spending for Naver Pay and Connect.

Speaker #3: Amid a rapidly evolving market environment, NAVER expects to continue expanding strategic investments in the near term to strengthen competitive positioning in targeting the offline market through NPay Connect.

Hee-Chul Kim: Amid a rapidly evolving market environment, NAVER expects to continue expanding strategic investments in the near term to strengthen competitive positioning in targeting the offline market through Npay Connect, and to strengthen capabilities for core businesses, including commerce and AI-powered advertisements. Ultimately, the company aims for these investments to support revenue growth in this core business and serve as a foundation for long-term growth drivers while contributing to the enhanced shareholder value. Next, I'll explain about NAVER's operating profit by business segment. NAVER Platform segment saw a 4.2 percentage point year-on-year decline in operating margin, despite solid revenue growth in advertising and commerce, primarily due to increased marketing costs as well as costs related to recognition of IP costs such as the World Cup broadcasting rights. Financial Platform segment continued to deliver solid revenue growth in Q2.

Hee-cheol Kim: Amid a rapidly evolving market environment, NAVER expects to continue expanding strategic investments in the near term to strengthen competitive positioning in targeting the offline market through Npay Connect, and to strengthen capabilities for core businesses, including commerce and AI-powered advertisements. Ultimately, the company aims for these investments to support revenue growth in this core business and serve as a foundation for long-term growth drivers while contributing to the enhanced shareholder value. Next, I'll explain about NAVER's operating profit by business segment. NAVER Platform segment saw a 4.2 percentage point year-on-year decline in operating margin, despite solid revenue growth in advertising and commerce, primarily due to increased marketing costs as well as costs related to recognition of IP costs such as the World Cup broadcasting rights. Financial Platform segment continued to deliver solid revenue growth in Q2.

Speaker #3: And to strengthen capabilities for core businesses, including commerce and AI-powered advertisements. Ultimately, the company aims for these investments to support revenue growth in its core business and serve as a foundation for long-term growth drivers, while contributing to enhanced shareholder value.

Speaker #3: Next, I'll explain about NAVER's operating profit by business segment. The NAVER Platform segment saw a 4.2 percentage point year-on-year decline in operating margin, despite solid revenue growth in advertising and commerce, primarily due to increased recognition of IP costs, such as the World Cup broadcasting rights.

Speaker #3: The Financial Platform segment continued to deliver solid revenue growth in Q2. However, operating margin declined by 4.9 percentage points, as investment costs necessary for expanding the deployment of Connect devices were reflected.

Hee-Chul Kim: Operating margin declined by 4.9% as investment costs necessary for expanding the deployment of Connect devices was reflected. In the Global Growth segment, losses narrowed, supported by accelerated growth in the C2C business. Q2 consolidated net income increased by 41.6% year-on-year to KRW 704.3 billion, driven by an increase in equity method gains and valuation gains on financial instruments. Q2 free cash flow decreased by KRW 150.5 billion year-on-year to KRW 486.3 billion. This was driven by increased CapEx, reflecting continued investment in infrastructure despite solid operating cash flow generation. On a quarter-on-quarter basis, free cash flow decreased by KRW 273.5 billion, mainly due to approximately KRW 300 billion in corporate income tax payments. In H2, we expect continued investment for growth, including computing assets like GPUs and CPUs, as well as the rollout of Npay Connect.

Hee-cheol Kim: Operating margin declined by 4.9% as investment costs necessary for expanding the deployment of Connect devices was reflected. In the Global Growth segment, losses narrowed, supported by accelerated growth in the C2C business. Q2 consolidated net income increased by 41.6% year-on-year to KRW 704.3 billion, driven by an increase in equity method gains and valuation gains on financial instruments. Q2 free cash flow decreased by KRW 150.5 billion year-on-year to KRW 486.3 billion. This was driven by increased CapEx, reflecting continued investment in infrastructure despite solid operating cash flow generation. On a quarter-on-quarter basis, free cash flow decreased by KRW 273.5 billion, mainly due to approximately KRW 300 billion in corporate income tax payments. In H2, we expect continued investment for growth, including computing assets like GPUs and CPUs, as well as the rollout of Npay Connect.

Speaker #3: In the global growth segment, losses narrowed, supported by accelerated growth in the C2C business. Q2 consolidated net income increased by 41.6% year on year to 704.3 billion Korean won, driven by an increase in equity-method gains and valuation gains on financial instruments.

Speaker #3: Q2 free cash flow decreased by ₩150.5 billion year on year to ₩406.3 billion. This was driven by increased capex, reflecting continued investment in infrastructure, despite solid operating cash flow generation.

Speaker #3: On a quarter-on-quarter basis, free cash flow decreased by 273.5 billion Korean won, mainly due to approximately 300 billion Korean won in corporate income tax payments.

Speaker #3: In the second half, we expect continued investment for growth, including computing assets like GPUs and CPUs, as well as the rollout of NPay Connect.

Speaker #3: However, as this year marks the peak concentration of market growth, the growth rate related to expenses, which is expected to moderately grow, is expected to moderate gradually starting next year.

Paul Choi: As this year marks peak concentration of market growth, the growth rate-related expense is expected to moderate gradually starting next year. As already demonstrated through initiatives like AI Briefing advertisements, these investments are expected to generate new revenue streams and drive up top-line growth, progressively contributing to overall financial performance. Lastly, on 03 August, NAVER retired 4,901,094 treasury shares, excluding bare minimum needed for granted stock compensation, representing 3.1% of total shares, approximately KRW 1 trillion in volume to enhance shareholder value. Moving forward, NAVER will continue to explore various measures to enhance shareholder value in line with our shareholder return plan, and will promptly share any updates with shareholders via public disclosures as decisions are finalized. This concludes the overview of our Q2 financial results, and we will now move on to the Q&A session.

Hee-cheol Kim: As this year marks peak concentration of market growth, the growth rate-related expense is expected to moderate gradually starting next year. As already demonstrated through initiatives like AI Briefing advertisements, these investments are expected to generate new revenue streams and drive up top-line growth, progressively contributing to overall financial performance. Lastly, on 03 August, NAVER retired 4,901,094 treasury shares, excluding bare minimum needed for granted stock compensation, representing 3.1% of total shares, approximately KRW 1 trillion in volume to enhance shareholder value. Moving forward, NAVER will continue to explore various measures to enhance shareholder value in line with our shareholder return plan, and will promptly share any updates with shareholders via public disclosures as decisions are finalized. This concludes the overview of our Q2 financial results, and we will now move on to the Q&A session.

Speaker #3: At the same time, as already demonstrated through initiatives like AI briefing advertisements, these investments are expected to generate new revenue streams and drive top-line growth, progressively contributing to overall financial performance.

Speaker #3: Lastly, on August 3rd, NAVER retired 4,901,094 treasury shares, excluding the bare minimum needed for granted stock compensation, representing 3.1% of total shares, and approximately 1 trillion Korean won in volume, to enhance shareholder value.

Speaker #3: Moving forward, NAVER will continue to explore various measures to enhance shareholder value in line with our shareholder return plan, and will promptly share any updates with shareholders via public disclosures as decisions are finalized.

Speaker #3: This concludes the overview of our Q2 financial results, and we will now move on to the Q&A session.

Speaker #2: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 눌러주시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다. 원활한 회의 진행을 위하여 질문은 1분당 두 가지 이내로 부탁드립니다.

Operator: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼의 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다. 원활한 회의 진행을 위하여 질문은 한 분당 두 가지 이내로 부탁드립니다. We will now begin the Q&A session. To ask a question, please press star and number 1 on your phone. To withdraw your question, please press star and number 2. In consideration of all participants, we kindly request that you limit your questions to two per person. 처음으로 질문해 주실 분은 JPMorgan의 Stanley Yang입니다.

Operator: [Foreign language]

Speaker #3: We will now begin the Q&A session. To ask a question, please press star and the number one on your phone. To withdraw your question, please press star and the number two.

[Translator]: We will now begin the Q&A session. To ask a question, please press star and number 1 on your phone. To withdraw your question, please press star and number 2. In consideration of all participants, we kindly request that you limit your questions to two per person.

Speaker #3: In consideration of all participants, we kindly request that you limit your questions to two per person.

Speaker #2: 다음으로 질문해 주실 분은 JP모건의 스탠리 양 김입니다.

Operator: [Foreign language]

Speaker #3: The first question will be provided by Stanley Yang from JP Morgan. Please go ahead with your question.

Operator: The first question will be provided by Stanley Yang from JPMorgan. Please go ahead with your question.

Operator: The first question will be provided by Stanley Yang from JPMorgan. Please go ahead with your question.

Speaker #4: 예, 질문기에 주셔서 감사합니다. 저는 그 AI 팩토리 사업에 대해서 질문드리겠습니다. 그 저희가 이제 그 네이버 100% 자회사 옵코가 있고요. 또 블루필드 FI가 이제 대주주가 되는 SPD, 이렇게 두 가지 엔티티가 있는데, 이 AIDC 사업에서 그 창출되는 이익을 이제 그 양쪽에서 이제 그 양분하는 구조처럼 보입니다.

Soo-Yeon Choi: 질문 기회 주셔서 감사합니다. 저는 AI 팩토리 사업에 대해서 질문드리겠습니다. 저희가 네이버 100% 자회사 OpCo가 있고요. 또 Brookfield가 대주주가 되는 SPV, 이렇게 두 가지 entity가 있는데 이 AIDC 사업에서 창출되는 이익을 양쪽에서 양분하는 구조처럼 보입니다. 그래서 OpCo와 SPV의 economic 구조가 어떻게 되는지, 그다음에 저희가 OpCo가 예상하는 수익률을 예전에 말씀을 해주셨던 것 같은데 그걸 다시 한번 말씀해 주시면 감사하겠고요. 그리고 여기서 추가적인 질문이 하나 더 있는데요. 향후에 AIDC의 어떤 비즈니스를 하실 때 어떤 리스크 또는 변수가 있는지가 궁금한데, 예를 들자면 토큰 가격, 컴퓨팅 파워의 가격이 변동성이 있을 때 저희 OpCo와 SPV가 어떻게 이 가격 변동 리스크를 헤징을 하는지, 어떻게 부담을 하는지 이런 것들이 궁금합니다. 감사합니다.

Speaker #4: 그래서 이제 옵코와 SPV의 이코노믹 구조가 어떻게 되는지, 그다음에 저희가 옵코가 예상하는 수익률을 예전에 말씀해 주셨던 것 같은데, 그걸 다시 한 번 좀 말씀해 주시면 감사하겠고요.

Speaker #4: 그리고 이제 여기서 추가적인 질문이 하나 더 있는데요. 그 향후에 이제 어 AIDC의 어떤 비즈니스를 하실 때 어떤 그 리스크 또는 변수가 있는지가 궁금한데, 예를 들자면 뭐 토큰 가격, 그 컴퓨팅 파워의 가격이 변동성이 있을 때 어 저희 옵코와 어 그 FTB가 어떻게 이 그 가격 변동 리스크를 갖다가 어 해칭을 하는지, 어떻게 이 부담을 하는지 이런 것들이 궁금합니다.

Stanley Yang: [Foreign language]

Speaker #4: 예, 감사합니다.

Speaker #5: Good morning. I would like to ask you a question about your AI Factory initiative. My understanding is that NAVER will have 100% ownership of the OpCo, the operating company.

Operator: Good morning. Would like to ask you a question about your AI Factory initiative. My understanding is that NAVER will have 100% ownership of the OpCo, the operating company, and there is going to be also SPV, where Brookfield is going to be the majority shareholder. I would assume that the profit that's generated through your AIDC business is going to be allocated or shared by these two entities. Would like to gain some more color as to what the economic structure is between OpCo versus the SPV. I think you've mentioned this previously, but would like to know as to what the projected return or profitability that you are looking for from the operating company. Going forward, would like to know as to what are some of the risk factors or variables that could actually impact your AIDC business.

[Translator]: Good morning. Would like to ask you a question about your AI Factory initiative. My understanding is that NAVER will have 100% ownership of the OpCo, the operating company, and there is going to be also SPV, where Brookfield is going to be the majority shareholder. I would assume that the profit that's generated through your AIDC business is going to be allocated or shared by these two entities. Would like to gain some more color as to what the economic structure is between OpCo versus the SPV. I think you've mentioned this previously, but would like to know as to what the projected return or profitability that you are looking for from the operating company. Going forward, would like to know as to what are some of the risk factors or variables that could actually impact your AIDC business.

Speaker #5: And there is going to be also an SPV, where Brookfield is going to be the majority shareholder. Then I would assume that the profit that's generated through your AIDC business is going to be allocated, or shared, by these two entities.

Speaker #5: We would like to gain some more color as to what the economic structure is between OPCO and the SPV. Also, I think you've mentioned this previously, but I would like to know what the projected return or profitability is that you are looking for from the operating company.

Speaker #5: And also, going forward, we would like to know what are some of the risk factors or variables that could actually impact your AIDC business.

Speaker #5: For instance, from changes in the token price or fluctuations in the compute price, we would like to know how the OPCO, as well as the SPV, is going to hedge against that fluctuation in pricing.

Operator: For instance, from changes in the token price or fluctuations in the compute price. Would like to know how the OpCo as well as the SPV is going to hedge against that fluctuation in pricing.

[Translator]: For instance, from changes in the token price or fluctuations in the compute price. Would like to know how the OpCo as well as the SPV is going to hedge against that fluctuation in pricing.

Speaker #6: 아, 첫 번째 질문에 대한 답변 먼저 드리면요. 음, 일단 월요일 날 저희가 공시된 자료를 좀 참고하시고 말씀을 드리면 좋을 것 같고, 기본적으로 저희가 브룩필드와 SPV, 옵코가 양분한다는 구조이기보다는, 기본적으로 이 컴퓨팅 비즈니스에서 발생하는 매출과 비용, 그에 따른 마진은 팩토리 운영사가 전부 얻는 구조라고 이해하시면 될 것 같습니다.

Hee-Chul Kim: 첫 번째 질문에 대한 답변 먼저 드리면요. 일단 월요일 날 저희가 공시된 자료를 참고하시고 말씀을 들으면 좋을 것 같고, 기본적으로 저희가 Brookfield와 SPV와 OpCo가 양분한다는 구조이기보다는 기본적으로 컴퓨팅 비즈니스에 의한 매출과 비용, 그에 따른 마진은 팩토리 운영사가 전부 얻는 구조라고 이해하시면 될 것 같습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: So, this is the CFO responding to your first question. I think it will be helpful if you could also refer to the disclosed material, which we released on Monday.

Operator: This is the CFO. Responding to your first question, I think it would be helpful if you could also refer to the disclosed material, which we disclosed on Monday. You've mentioned how the profit or earnings that's generated could actually go under Brookfield SPV as well as your OpCo, the operating company. I think it's more correct to say that all the revenue, the cost, as well as the margin that arises from this business is going to come under AI Factory operating entity.

[Translator]: This is the CFO. Responding to your first question, I think it would be helpful if you could also refer to the disclosed material, which we disclosed on Monday. You've mentioned how the profit or earnings that's generated could actually go under Brookfield SPV as well as your OpCo, the operating company. I think it's more correct to say that all the revenue, the cost, as well as the margin that arises from this business is going to come under AI Factory operating entity.

Speaker #5: You've mentioned how the profit, or earnings, that's generated could actually go under both the Brookfield SPV as well as your OpCo, the operating company.

Speaker #5: But I think it's more correct to say that all that arises from this business is going to come under the AI Factory operating entity.

Speaker #6: 이 비즈니스를 수행하 컴퓨팅 비즈니스를 수행하려면 막대한 이제 컴퓨팅 자산에 대한 조달이 필요한데요. 그 조달을 뭐 네이버가 직접 하는 구조가 아니라 브룩필드가 SPV를 통해서 뭐 조달을 하고 저희한테 공급하면서 그런 마진을 뭐 거기서의 마진을 얻는 구조가 뭐 브룩필드가 얻는 그런 그 영역이 될 것 같습니다.

Hee-Chul Kim: 이 컴퓨팅 비즈니스를 수행하려면 막대한 컴퓨팅 자산에 대한 조달이 필요한데요. 그 조달을 NAVER가 직접 하는 구조가 아니라 Brookfield가 SPV를 통해서 조달을 하고 저희한테 공급하면서, 거기에서의 마진을 얻는 구조가 Brookfield가 얻는 영역이 될 것 같습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: When you're engaging in this type of computing business, there's going to be a massive amount of computing assets that need to be sourced.

Operator: When you're engaging in this type of a computing business, there's going to be a massive amount of computing asset that needs to be sourced. NAVER rather than directly sourcing those computing assets, Brookfield through its SPV is going to be financing and also sourcing those computing assets, and they will be supplying that asset to us, NAVER. In that process, there will be margin that's going to be generated, which will come under Brookfield.

[Translator]: When you're engaging in this type of a computing business, there's going to be a massive amount of computing asset that needs to be sourced. NAVER rather than directly sourcing those computing assets, Brookfield through its SPV is going to be financing and also sourcing those computing assets, and they will be supplying that asset to us, NAVER. In that process, there will be margin that's going to be generated, which will come under Brookfield.

Speaker #5: And NAVER, rather than directly sourcing those computing assets, Brookfield, through its SPV, is going to be financing and also sourcing those computing assets, and they will be supplying that asset to us, NAVER.

Speaker #5: And in that process, there will be margin that’s going to be generated, which will come under Brookfield.

Speaker #6: 옵코의 예상 수익률 같은 경우는 그 성숙도에 따라서 좀 변화가 있을 것 같은데요. 뭐 초반에는 마진율이 좀 낮게 시작할 수는 있지만, 사업이 성숙함에 따라서 기본적으로 두 자릿수 이상, 나아가서는 한 20%, 22% 이상의 마진율을 기대하고 있습니다.

Hee-Chul Kim: OpCo의 예상 수익률 같은 경우는 성숙도에 따라서 변화가 있을 것 같은데요. 초반에는 마진율이 좀 낮게 시작할 수는 있지만, 사업이 성숙함에 따라서 기본적으로 두 자릿수 이상, 나아가서는 한 20% 이상의 마진율을 기대하고 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: Now, in terms of the profitability or the margin levels that we're expecting from the OPCO, it will depend on the maturity level of the market.

Operator: In terms of the profitability or the margin levels that we're expecting from the OPCO is that it will depend on the maturity level of the market. Initially, it may start off with a lower level of margin, as time goes by, basically, we are looking forward to at least double digits margin and eventually around 20% level.

[Translator]: In terms of the profitability or the margin levels that we're expecting from the OPCO is that it will depend on the maturity level of the market. Initially, it may start off with a lower level of margin, as time goes by, basically, we are looking forward to at least double digits margin and eventually around 20% level.

Speaker #5: Initially, it may start off with a lower level of margin, but as time goes by, we are basically looking forward to at least a double-digit margin, and eventually around the twenty percent level.

Speaker #6: 그 AIDC 비즈니스 리스크에 대해서는 저희 내부적으로도 많은 검토를 했고, 한 네 가지 정도의 리스크를 점검해 볼 수 있을 것 같습니다.

Hee-Chul Kim: AIDC 비즈니스 리스크에 대해서는 저희 내부적으로도 많은 검토를 했고, 한 네 가지 정도의 리스크를 점검해 볼 수 있을 것 같습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: When it comes to AIDC business-related risk, we internally made a thorough review and identified around four different risks.

Operator: When it comes to AIDC business-related risk, we internally made thorough review, we can identify around four different risks.

[Translator]: When it comes to AIDC business-related risk, we internally made thorough review, we can identify around four different risks.

Speaker #6: 첫 번째로, 저희 고객사 확보 등의 어떤 수요 리스크의 경우에는 네이버는 저런 다른 네오 클라우드 사업자와는 달리 네이버 본체도 대량의 AI 칩을 필요로 하는 사용자이기도 하여, 고객사와 네이버의 수요를 적절히 믹스하여 수급 안정성을 가져갈 수 있는 차별적인 강점으로 해소 가능할 것으로 기대하고 있습니다.

Hee-Chul Kim: 첫 번째로 저희 고객사 확보 등의 어떤 수요 리스크의 경우에는 NAVER는 어떤 다른 네오 클라우드 사업자와는 달리 NAVER 본체도 대량의 AI 칩을 필요로 하는 사용자이기도 하여, 고객사와 NAVER의 수요를 적절히 믹스하여 수급 안정성을 가져갈 수 있는 차별적인 강점으로 해소 가능할 것으로 기대하고 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: Now, the first potential risk factor could come from securing demand from customers. But unlike other companies, NAVER itself also requires a significant amount of AI chips and compute resources.

Operator: The first potential factor or risk factor could be from securing the demand from the customers. Unlike other companies, NAVER itself also requires significant amount of AI chip and compute resources. Hence, we will be able to make and strike a good balance between the demand from our external customers as well as for NAVER's own requirements and demand. Through that approach, we believe that we will be able to manage this in a quite steady manner.

[Translator]: The first potential factor or risk factor could be from securing the demand from the customers. Unlike other companies, NAVER itself also requires significant amount of AI chip and compute resources. Hence, we will be able to make and strike a good balance between the demand from our external customers as well as for NAVER's own requirements and demand. Through that approach, we believe that we will be able to manage this in a quite steady manner.

Speaker #5: And hence, we will be able to make and strike a good balance between the demand from our external customers as well as for NAVER's own requirements and demand.

Speaker #5: Through that approach, we believe that we will be able to manage this in a quite steady manner.

Speaker #6: 어 두 번째로 칩 확보 등의 그런 실행 리스크의 경우에는 네이버 같은 경우 엔비디아를 상대 주주로 들이는 그런 전략적 협업 구조를 수립했고요. 그로 이로 인해서 네이버가 적시에 원활하게 칩을 공급받아서 어 사업 실적을 낼 수 있도록 기반을 마련한 바 있습니다.

Hee-Chul Kim: 두 번째로 칩 확보 등의 그런 실행 리스크의 경우에는 NAVER 같은 경우 NVIDIA를 3대 주주로 들이는 그런 전략적 협업 구조를 수립했고요. 이로 인해서 NAVER가 적시에 원활하게 칩을 공급받아서 사업 실적을 낼 수 있도록 기반을 마련한 바 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: And secondly, when it comes to sourcing of the AI chips, that's considered to be one of the key aspects of the execution risk. But by onboarding NVIDIA as our third largest shareholder and by entering into strategic cooperation with NVIDIA, we believe that we have the basis to be able to secure AI chips in a timely manner.

Operator: Secondly, when it comes to sourcing of the AI chips, that's considered to be one of the key aspects of the execution risk. By onboarding NVIDIA as our third largest shareholder and by entering into a strategic cooperation with NVIDIA, we believe that we have the basis to be able to secure AI chips in a timely manner.

[Translator]: Secondly, when it comes to sourcing of the AI chips, that's considered to be one of the key aspects of the execution risk. By onboarding NVIDIA as our third largest shareholder and by entering into a strategic cooperation with NVIDIA, we believe that we have the basis to be able to secure AI chips in a timely manner.

Speaker #6: 어 세 번째로는 그런 자본 조달 이자 비용 등과 같은 금융 리스크가 있을 수 있는데요. 저희는 뭐 오에서 육 년 정도의 어떤 단일 계약 구조뿐만이 아니라 다양한 계약 기간을 가진 고객을 저희가 가 복합적으로 확보함으로써 어 어떤 공급 가격의 변동에 대응하면서도 조달에 대한 금융 리스크를 최소화할 계획을 가지고 있습니다.

Hee-Chul Kim: 세 번째로는 그런 자본 조달 이자 비용 등과 같은 금융 리스크가 있을 수 있는데요. 저희는 5에서 6년 정도의 어떤 단일 계약 구조뿐만이 아니라 다양한 계약 기간을 가진 고객을 저희가 복합적으로 확보함으로써 어떤 공급 가격의 변동에 대응하면서도 조달에 대한 금융 리스크를 최소화할 계획을 가지고 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: And the third potential risk has to do with financing risk, in regard to the interest cost. We not only have a single contract arrangement with a contract term of five to six years, but we also have multiple types of customers, where there are various different types of contract durations and terms and conditions.

Operator: Third potential risk has to do with the financing risk in regards to the interest cost. We not only have a one single contract arrangement of five to six years of contract term, we have multiple types of customers where there are various different types of contract durations and terms and conditions. We will be able to flexibly respond to potential changes in the supply prices and also adequately respond to and minimize potential financing risk as much as possible.

[Translator]: Third potential risk has to do with the financing risk in regards to the interest cost. We not only have a one single contract arrangement of five to six years of contract term, we have multiple types of customers where there are various different types of contract durations and terms and conditions. We will be able to flexibly respond to potential changes in the supply prices and also adequately respond to and minimize potential financing risk as much as possible.

Speaker #5: So we will be able to flexibly respond to potential changes in supply prices, and also adequately respond to and minimize potential financing risk as much as possible.

Speaker #6: 네 마지막으로는 예상 대비 더 빠른 속도로 뭐 어떤 차세대 인프라가 출시되는 등의 기술 변화 속도 리스크가 있을 수 있는데요. 저희가 진보여 진보화율이 높아지는 만큼 어 시간당 컴퓨팅 가격이 상승하는 등 기술 변화에 맞춰 사업 전반적인 고객과의 이제 계약 구조 역시 변화할 것이라고 생각하고 있고 뭐 대응할 수 있을 거라고 판단하고 있습니다.

Hee-Chul Kim: 마지막으로는 예상 대비 더 빠른 속도로 어떤 차세대 인프라가 출시되는 등의 기술 변화 속도 리스크가 있을 수 있는데요. 저희가 진부화율이 높아지는 만큼 시간당 컴퓨팅 가격이 상승하는 등 기술 변화에 맞춰 사업 전반적인 고객과의 계약 구조 역시 변화할 것이라고 생각하고 있고, 대응할 수 있을 거라고 판단하고 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #5: And the fourth potential risk factor is the speed at which the next generation technology actually transforms. So with the coming up of the next generation infrastructure, as well as the speed accelerating, basically with a higher level of obsolescence, there could be the risk of the per unit computing price actually uptrending.

Operator: The fourth potential risk factor is the speed at which the next generation technology actually transforms. With the coming up of the next generation infrastructure as well as the speed accelerating, basically with a higher level of obsolescence, there could be the risk of the per unit computing price actually uptrending. In step with the changes in the technology, we believe that the contractual arrangements with our customers would also undergo change.

[Translator]: The fourth potential risk factor is the speed at which the next generation technology actually transforms. With the coming up of the next generation infrastructure as well as the speed accelerating, basically with a higher level of obsolescence, there could be the risk of the per unit computing price actually uptrending. In step with the changes in the technology, we believe that the contractual arrangements with our customers would also undergo change.

Speaker #5: But instead, with the changes in technology, we believe that the contractual arrangement with our customers will also undergo change.

Speaker #6: 네 그러면 다음 질문 받겠습니다.

Operator: 네, 그러면 다음 질문 받겠습니다.

Paul Choi: [Foreign langauge]

Speaker #5: Next question please.

Operator: Next question, please.

[Translator]: Next question, please.

Speaker #3: 다음으로 질문해 주실 분은 번스타인의 강민주 님입니다. The following question will be presented by Minju Kang from Bernstein. Please go ahead with your question.

Operator: 다음으로 질문해 주실 분은 Bernstein의 강민주 님입니다. The following question will be presented by Minju Kang from Bernstein. Please go ahead with your question.

Operator: [Foreign language].

[Translator]: The following question will be presented by Minju Kang from Bernstein. Please go ahead with your question.

Speaker #7: 네, 안녕하세요. 번스타인의 강민주입니다. 질문 기회 주셔서 감사합니다. 두 가지 질문이 있는데요. 첫 번째로, 일단 제가 제일 궁금했던 것은 전사 차원의 자원 배분 관련 질문입니다.

Minju Kang: 네, 안녕하세요. Bernstein의 강민주입니다. 질문 기회 주셔서 감사합니다. 두 가지 질문이 있는데요. 첫 번째로 일단 제가 제일 궁금했던 거는 전사 차원의 자원 배분 관련 질문입니다. NAVER가 최근에 neocloud 사업 시행을 발표를 했고, 이에 적극적으로 임하고 있는 만큼 이와 관련해서 향후 성장 자원의 배분 측면에서 커머스 사업에 대한 우선순위가 일부 조정될 수 있을지 궁금하고요. 또한 커머스 사업을 통해 축적된 방대한 그런 NAVER의 사용자 데이터와 체증이 장기적으로 NAVER의 AI 관련 사업 경쟁에서 어떤 차별화된 경쟁 우위로 작용할 수 있을지 궁금합니다.

Speaker #7: 네이버가 어 최근에 네오 클라우드 사업 발 어 시시행을 발표를 했고 이 이에 적극적으로 임하고 있는 만큼 이와 관련해서 향후 성장 자원의 배분 측면에서 커머스 사업에 대한 우선순위가 일부 조정될 수 있을지 궁금하고요.

Speaker #7: 또한 커머스 사업을 통해 축적된 방대한, 네이버의 사용자 데이터와 트래픽이 장기적으로 네이버의 AI 관련 사업 영역에서 어떠한 차별화된 경쟁 우위로 작용할 수 있을지 궁금합니다.

Min-Joo Kang: [Foreign language]

Speaker #7: 두 번째로는 네오 클라우드 사업 관련인데요. 네이버 플랫폼 마진의 수익률이 최근에 GPU 투자 확대에 따라서 감가상각비 영향으로 일부 희석된 것으로 이해하고 있습니다. 향후 네오 클라우드 사업을 위한 SPC 설립 과정에서 기존의 일부 GPU 자산 등이 이관될 가능성이 있는지, 그렇다면 이것이 플랫폼 부문 마진율 개선에 영향이 있을지 궁금하고요.

Minju Kang: 두 번째로는 네오클라우드 사업 관련인데요. NAVER 플랫폼 마진의 수익률이 최근에 GPU 투자 확대에 따라서 감가상각비 영향으로 일부 흡수된 것으로 이해하고 있습니다. 향후 네오클라우드 사업을 위한 SPV 설립 과정에서 기존의 일부 GPU 자산 등이 이관될 가능성이 있는지, 그렇다면 이것이 플랫폼 부분 마진율 개선에 영향이 있을지가 궁금하고요. 아니라면 혹시 지금 수준 레벨을 유지할 수 있을지 궁금합니다. 그리고 또 세부 질문으로는 네이버가 사실 국내 다른 AI DC 업체에 대비해서 인프라 구축 일정이 비교적 빠른 편으로 보이는데, 이러한 선제적 투자와 빠른 구축이 향후 고객 확보, 장기 계약 체결 또는 가격 협상력 측면에서 어떠한 경쟁 우위를 가질 수 있을지 궁금합니다. 마지막 세부 질문으로는 네오클라우드를 독립적으로 운영하기 위해서 전문 기술 인력 및 조직 구축이 필요할 것으로 보이는데, 현재 가지고 있는 인력 운영 및 조직 구성에 대한 계획이 있으시다면 공유해 주시면 감사하겠습니다.

Speaker #7: 아니라면 혹시 지금 수준, 레벨을 유지할 수 있을지 궁금합니다. 그리고 또 추가적으로는 네이버가 사실 국내 다른 AI DC 티어 대비해서 인프라 구축 일정이 비교적 빠른 편으로 보이는데, 이러한 선제적 투자와 빠른 구축이 향후 고객 확보, 장기 계약 체결 또는 가격 협상력 측면에서 어떠한 경쟁 우위를 가질 수 있을지 궁금합니다.

Speaker #7: 마지막 세부 질문으로는 이제 네오 클라우드를 독립적으로 운영하기 위해서 전문 기술 인력 및 조직 구축이 필요할 것으로 보이는데, 현재 가지고 있는 현대 인력 운영 및 조직 구성에 대한 계획이 있으시다면 공유해 주시면 감사하겠습니다.

Speaker #5: Thank you for taking my question. I am Kang Minju from Bernstein. My first question has to do with your Neo Cloud-related business initiative, as well as the asset allocation priority—whether it could undergo certain changes.

Operator: Thank you for taking my question. I am Kang Min-ju from Bernstein. My first question has to do with your neocloud related business initiative, as well as the asset allocation priority, whether it could undergo certain changes. Since you would have to focus quite a bit of your growth capital towards this neocloud business, would like to know whether that would change your priority that you've placed on your commerce business? Also this extensive amount of data and traffic that you are able to drive under your commerce initiative, how would that work as a competitive edge supporting your AI business moving forward? Second question has to do with your neocloud business. I see that because of the investment and the depreciation that follows, the margin rate from NAVER platform had declined somewhat.

[Translator]: Thank you for taking my question. I am Kang Min-ju from Bernstein. My first question has to do with your neocloud related business initiative, as well as the asset allocation priority, whether it could undergo certain changes. Since you would have to focus quite a bit of your growth capital towards this neocloud business, would like to know whether that would change your priority that you've placed on your commerce business? Also this extensive amount of data and traffic that you are able to drive under your commerce initiative, how would that work as a competitive edge supporting your AI business moving forward? Second question has to do with your neocloud business. I see that because of the investment and the depreciation that follows, the margin rate from NAVER platform had declined somewhat.

Speaker #5: Since you would have to focus quite a bit of your growth capital towards this Neo Cloud business, I would like to know whether that would change the priority that you've placed on your Commerce business.

Speaker #5: And also, this extensive amount of data and traffic that you are able to drive under your commerce initiative—how would that work as a competitive edge supporting your AI business moving forward?

Speaker #5: The second question has to do with your Neo Cloud business. I see that because of the investment and the depreciation that follows, the margin rate from the Neo Neighbor platform has declined somewhat.

Speaker #5: With the setup of the SPC SPV, would you be planning to carve out and transfer your GPU to that SPV entity, and would that have an impact on improving the margin for your Neighbor platform business, or do you think that the current level will continue onwards?

Operator: With the setup of the SPV, would you be planning to carve out your and transfer your GPU to that SPV entity? Would that have an impact of improving the margin for NAVER platform business? Do you think that the current level will continue onwards? Third question is compared to your domestic peers in AIDC, you seem to be moving more quickly in terms of the build out of the AIDC infrastructure and those relevant endeavors. Would like to know as to what are some of the customer sourcing approach as well as long-term agreements or in terms of the pricing negotiations, do you believe that you will have an upper hand? My last question is also related to neocloud. For you to be operating neocloud business, it seems like you would need a specialized talent and organization. What are your plans regarding this?

[Translator]: With the setup of the SPV, would you be planning to carve out your and transfer your GPU to that SPV entity? Would that have an impact of improving the margin for NAVER platform business? Do you think that the current level will continue onwards? Third question is compared to your domestic peers in AIDC, you seem to be moving more quickly in terms of the build out of the AIDC infrastructure and those relevant endeavors. Would like to know as to what are some of the customer sourcing approach as well as long-term agreements or in terms of the pricing negotiations, do you believe that you will have an upper hand? My last question is also related to neocloud. For you to be operating neocloud business, it seems like you would need a specialized talent and organization. What are your plans regarding this?

Speaker #5: The third question is: Compared to your domestic peers in AIDC, you seem to be moving more quickly in terms of the buildout of the AIDC infrastructure and those relevant endeavors.

Speaker #5: So, I would like to know what some of the customer sourcing approaches are, as well as, in terms of long-term agreements or pricing negotiations, do you believe that you will have an upper hand?

Speaker #5: My last question is also related to Neo Cloud. For you to be operating the Neo Cloud business, it seems like you would need specialized talent and organization, so what are your plans regarding this?

Speaker #7: 네, AI 팩토리라고 불리고 있는 저희의 네오클라우드 사업은 이번에 AI 시대의 변화에 맞춰서 그동안 저희가 잘 쌓아온 인프라 운영 및 클라우드 프레싱 역량을 발휘하여 도전할 만한 B2B에 특화된 새로운 영역이라 판단하고 있습니다.

Soo-Yeon Choi: AI 팩토리라고 불리고 있는 저희의 네오클라우드 사업은 이번에 AI 시대의 변화에 맞춰서 그동안 저희가 잘 쌓아온 인프라 운영 및 클라우드 퍼스트인 역량을 발휘하여 도전할 만한 B2B에 특화된 새로운 영역이라 판단하고 있습니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: This is the CEO responding to your question. the AI factory is basically the Neo Cloud business that Neighbor is engaging in and we are taking we are you know aligned with the current trend when it comes to the Neo Cloud business and we believe that this is a specialized B2B domain where we Neighbor will be able to leverage all of our capabilities that we've been building over the years and infrastructure as well as cloud.

Operator: This is the CEO responding to your question. The AI Factory is basically the neocloud business that NAVER is engaging in, we are aligned with the current trend when it comes to the neocloud business. We believe that this is a specialized B2B domain where we, NAVER, will be able to leverage all of our capabilities that we've been building over the years in infrastructure as well as cloud.

[Translator]: This is the CEO responding to your question. The AI Factory is basically the neocloud business that NAVER is engaging in, we are aligned with the current trend when it comes to the neocloud business. We believe that this is a specialized B2B domain where we, NAVER, will be able to leverage all of our capabilities that we've been building over the years in infrastructure as well as cloud.

Speaker #5: 어, 커머스 사업의 경우에는 이번 저희 분기 실적에서도 보실 수 있듯이, 저희의 핵심 사업, 그 포트폴리오인 검색, 광고와 그리고 서비스 영역의 성장을 견인하고 있고, 매우 고성장하고 있는 저희 핵심 사업이라고 볼 수 있습니다.

Soo-Yeon Choi: 커머스 사업의 경우에는 이번 저희 분기 실적에서도 보실 수 있듯이 저희의 핵심 사업 포트폴리오인 광고와 그리고 서비스 영역의 성장을 견인을 하고 있고, 매우 고성장하고 있는 저희 핵심 사업이라고 볼 수 있습니다.

Soo-yeon Choi: [Foreign language]

Speaker #5: As you can see from our quarterly results, commerce business is a very high-growth segment for us. It is our core fundamental business that really is driving the growth of advertisements and core services.

Operator: As you can see from our quarterly result, commerce business is a very high growth segment for us. It is our core fundamental business that really is driving the growth of advertisement and core services.

[Translator]: As you can see from our quarterly result, commerce business is a very high growth segment for us. It is our core fundamental business that really is driving the growth of advertisement and core services.

Speaker #5: 이 부분은 B2B, B2C의 사업 영역으로, 현재 저희 네이버에서 리소스나 조직의 구조 이런 부분들이 모두 매우 독립적으로 운영이 되고 있고, 저희가 이런 쌓은 경험들이 이 양측 영역에서 시너지를 낼 부분은 있다고 판단하고 있으나, 이 둘은 특별히 기존 사업의 우선순위를 바꾸는 형태로 서로 작용하지는 않을 것으로 생각합니다.

Soo-Yeon Choi: 이 부분은 B2C의 사업 영역으로 현재 저희 NAVER에서 리소스나 조직의 구조, 이런 부분들이 모두 독립적으로 운영이 되고 있고, 저희가 이런 쌓은 경험들이 양측 영역에서 시너지를 낼 부분은 있다고 판단하고 있으나, 이 둘은 특별히 기존 사업의 우선순위를 바꾸는 형태로 서로 작용하지는 않을 것으로 생각합니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: But those areas are B2C domains and Neighbor operates its resources organization and structure independently and so although there could be areas where we will be able to drive synergies across those two domains this is not this will not be shifting any priority away from our previous focus on commerce.

Operator: Those areas are B2C domains and NAVER operates its resources, organization, and structure independently. Although there could be areas where we will be able to drive synergies across those two domains, this will not be shifting any priority away from our previous focus on commerce.

[Translator]: Those areas are B2C domains and NAVER operates its resources, organization, and structure independently. Although there could be areas where we will be able to drive synergies across those two domains, this will not be shifting any priority away from our previous focus on commerce.

Speaker #5: 특히 커머스 영역에 있어서 저희가 물류에 있어서 경쟁력도 확보하는 차원으로 여러 가지 투자에 대한 검토를 하고 있는데요. 이 부분은 네오클라우드의 저희 사업 구조와 마찬가지로 에센라이트한 형태로 검토하고 있다는 점도 함께 말씀드립니다.

Soo-Yeon Choi: 특히 커머스 영역에 있어서 저희가 물류에 있어서 경쟁력도 확보하는 차원으로 여러 가지 투자에 대한 검토를 하고 있는데요. 이 부분은 네오클라우드의 저희 사업 구조와 마찬가지로 asset-light한 형태로 검토하고 있다는 점도 함께 말씀드립니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: And also on the commerce side, we are really considering various different investments to further bolster our logistical competitiveness. And just like the approach that we're taking for the NEO Cloud business, we will also be using an asset-light approach.

Operator: Also on the commerce side, we are really considering various different investments to further bolster our logistical competitiveness. Just like the approach that we're taking for NAVER Cloud business, we will also be using an asset-light approach.

[Translator]: Also on the commerce side, we are really considering various different investments to further bolster our logistical competitiveness. Just like the approach that we're taking for NAVER Cloud business, we will also be using an asset-light approach.

Speaker #3: 먼저 질문은 한 세 가지 질문으로 세부 질문으로 좀 이해가 되는데요. 첫 번째, 네이버 플랫폼 수익성에 대한 질문에 대해서는 기본적으로 네이버 플랫폼 수익성에 미치는 감가상각 등은 주로 네이버 서비스를 위한 인프라와 관련된 비용 때문입니다.

Hee-Chul Kim: 두 번째 질문은 한 세 가지 질문으로 세부 질문으로 이해가 되는데요. 첫 번째, 네이버 플랫폼 수익성에 대한 질문에 대해서는, 기본적으로 네이버 플랫폼 수익성에 미치는 감가상각비는 주로 네이버 서비스를 위한 인프라와 연관된 비용 때문입니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: Now, the second question on Naver Cloud—I take it that there are three parts to that question. First, having to do with the Naver platform margin. Now, basically, that is impacted because of the infrastructure that Naver is using to serve its Naver services and because of the depreciation that arises out of that.

Operator: Now, the second question on NAVER Cloud, I take it that there are three parts to that question. First, having to do with the NAVER platform margin. Now, basically, that is impacted because of the infrastructure that NAVER is using to serve its NAVER services, and because of the depreciation that arises out of that.

[Translator]: Now, the second question on NAVER Cloud, I take it that there are three parts to that question. First, having to do with the NAVER platform margin. Now, basically, that is impacted because of the infrastructure that NAVER is using to serve its NAVER services, and because of the depreciation that arises out of that.

Speaker #3: 이런, 이제 새로운 네오클라우드 사업의 전개로 기존에 저희 네이버가 보유한 GPU 재산 등이 이관되지는 않을 걸로 생각을 하고요. 기본적으로 네오클라우드 비즈니스가 지금 에셋 라이트한 구조 하에서 새로운 사업을 전개하는 것이기 때문에 기존 네이버 플랫폼의 비용 구조와는 크게 상관이 없을 것으로 말씀드립니다.

Hee-Chul Kim: 이런 새로운 네오클라우드 사업의 전개로 기존에 저희 NAVER가 보유한 GPU 자산 등이 이관되지는 않을 걸로 생각을 하고요.

Hee-cheol Kim: [Foreign language]

Soo-Yeon Choi: 기본적으로 네오클라우드 비즈니스가 지금 asset-light한 구조하에서 새로운 사업을 전개하는 것이기 때문에 기존 NAVER 플랫폼의 비용 구조와는 크게 상관이 없을 것으로 말씀드립니다.

Speaker #7: And basically, with the Neo Cloud business that we are pushing forward, this is not going to entail any carve-out of the GPU asset that NAVER currently has.

Operator: Basically with the NAVER Cloud business that we are pushing forward, this is not going to entail any carve out of the GPU asset that NAVER currently has. It is a new business for us, based upon which we are implementing our efforts. NAVER Cloud, once again, is going to also take on an asset-light approach.

[Translator]: Basically with the NAVER Cloud business that we are pushing forward, this is not going to entail any carve out of the GPU asset that NAVER currently has. It is a new business for us, based upon which we are implementing our efforts. NAVER Cloud, once again, is going to also take on an asset-light approach.

Speaker #7: It is a new business for us, and based on that, we are implementing our efforts. Neo Cloud, once again, is also going to take on an asset-light approach.

Speaker #3: 네, 두 번째 질문에서 이제 구축 일정에 대해 말씀 주셨는데요. 저희가 빠르기도 하겠지만, 사실 저희의 구축 플랜은 상당히 구체적인 특성이 있다고 말씀드릴 수 있을 것 같습니다.

Soo-Yeon Choi: 네, 두 번째 질문에서 구축 일정에 대해 말씀주셨는데요. 저희가 빠르기도 하겠지만 사실 저희의 구축 플랜은 상당히 구체적인 특성이 있다고 말씀드릴 수 있을 것 같습니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: And so because of that, just going back to the previous part of the question, it's not going to have any, you know, significant impact on, or impact on, the cost structure of the NAVER platform.

Operator: Because of that, just going back to the previous part of the question, it is not going to have any significant impact or impact on the cost structure of the NAVER platform. Now in terms of the buildout planning, yes, we are fast, there are also other characteristics to that.

[Translator]: Because of that, just going back to the previous part of the question, it is not going to have any significant impact or impact on the cost structure of the NAVER platform. Now in terms of the buildout planning, yes, we are fast, there are also other characteristics to that.

Speaker #7: Now in terms of the the the build the build out planning yes we are fast but there are also other characteristics to that.

Speaker #3: 뭐 상호 다양한 이런 공급자들의 진입이 뭐 예상이 될 수는 있는데요. 저희의 이런 빠른 속도와 구체적인 실행은 어떤 이 시장을 선점하는 데 있어서 매우 강력한 그런 강점으로 작용할 것으로 기대하고 있습니다.

Soo-Yeon Choi: 향후 다양한 이런 공급자들의 진입이 예상이 될 수는 있는데요. 저희의 이런 빠른 속도와 구체적인 실행은 어떤 이 시장을 선점하는 데 있어서 매우 강력한 강점으로 작용할 것으로 기대하고 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: There may be a number of other service providers entering into this domain, but we are moving fast and also have a very concrete execution plan in place, so that will help us gain an upper hand in this market.

Operator: There may be number of multiple other service providers entering into this domain, we are moving fast and also we have a very concrete execution plan in place. That will help us gain an upper hand in this market.

[Translator]: There may be number of multiple other service providers entering into this domain, we are moving fast and also we have a very concrete execution plan in place. That will help us gain an upper hand in this market.

Speaker #3: 마지막으로 인력, 기술 인력과 조직 구축 관련해서는 기본적으로 저희는 기존의 네오 클라우드 유사 비즈니스를 수행하면서 그 프레스팅 역량을 네이버클라우드라는 자회사를 통해서 잘 수행하고 있었던 부분이 있었고요.

Soo-Yeon Choi: 마지막으로 인력, 기술력과 조직 구축 관련해서는 기본적으로 저희는 기존에 neocloud 유사 비즈니스를 수행하면서 그 full-stack 역량을 NAVER 클라우드라는 자회사를 통해서 잘 수행하고 있었던 부분이 있었고요. 이 컴퓨트 비즈니스로 인해서 대규모의 어떤 인력 구축이나 조직 세팅보다는 기존 인력과 조직을 잘 활용해서 일단 사업을 전개하는 걸 목표하고 있습니다.

Speaker #3: 이 컴퓨터 비즈니스로 인해서, 대규모의 어떤 인력 구축이나 조직 세팅보다는 기존 인력과 조직을 잘 활용해서 일단 사업을 전개하는 걸 목표하고 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: In terms of the required technology, the talent, and the organization, we have already been engaging in a Neo Cloud business internally within NAVER through our full-stack capabilities, through our subsidiary, NAVER Cloud.

Operator: In terms of the required technology, the talent and the organization, we already been engaging in a neocloud business internally within NAVER through our full-stack capabilities through our subsidiary NAVER Cloud. Rather than extensively newly building out organization and acquiring new talent, we will be able to leverage our current resources.

[Translator]: In terms of the required technology, the talent and the organization, we already been engaging in a neocloud business internally within NAVER through our full-stack capabilities through our subsidiary NAVER Cloud. Rather than extensively newly building out organization and acquiring new talent, we will be able to leverage our current resources.

Speaker #7: So rather than extensively building out new organization and acquiring new talent, we'll be able to leverage our current resources.

Speaker #3: 네 그럼 다음 질문 받겠습니다.

Paul Choi: 네, 그럼 다음 질문 받겠습니다.

Paul Choi: [Foreign language]

Speaker #1: 다음으로 질문해 주실 분은 하나증권의 이준호 님입니다. The following question will be presented by Junho Lee from Hana Securities. Please go ahead with your question.

Operator: 다음으로 질문해 주실 분은 하나증권의 이준호 님입니다.

Operator: [Foreign language]

Operator: The following question will be presented by Joon-ho Lee from Hana Securities. Please go ahead with your question.

[Translator]: The following question will be presented by Joon-ho Lee from Hana Securities. Please go ahead with your question.

Speaker #2: 아, 네. 안녕하세요. 질문 주셔서 감사합니다. 하나증권 이준호입니다. 저는 ARDC 관련해서 두 가지 질문이 있는데요. 첫 번째로는 저희 각 세종에 대해서 증설 스케줄이랑 현재 추진 현황이 어떻게 되고 있는지 업데이트 부탁드리고요.

Joon-ho Lee: 네, 안녕하세요. 질문 기회 주셔서 감사합니다. 하나증권 이준호입니다. 저는 AIDC 관련해서 두 가지 질문이 있는데요. 첫 번째로는 GAK 세종에 대해서 증설 스케줄이랑 현재 추진 현황이 어떻게 되고 있는지 업데이트 부탁드리고요. 두 번째로는 저희가 작년부터 중동 데이터센터, 그리고 올해는 남미 데이터센터 관련해서 미팅하는 것들이 유출 확인되고 있는데 사업 로드맵, 포괄 사업 구조 한번 설명 부탁드립니다. 감사합니다.

Speaker #2: 두 번째로는 저희가 작년부터 중동 데이센터, 그리고 올해는 남미 데이센터 관련해서 미팅하는 것들이 뉴스로 확인되고 있는데, 사업 로드맵 혹은 사업 구조 한번 설명 부탁드립니다.

Jun-ho Lee: [Foreign language]

Speaker #2: 감사합니다.

Speaker #7: Thank you for taking my question. I am Lee Junho from Hana Securities. I have two questions regarding the ARDC business. Can you give us an update on what your capacity addition schedule looks like for each Sejong data center?

Operator: Thank you for taking my question. I am Joon-ho Lee from Hana Securities, have two questions regarding AIDC business. Can you give us an update as to what your capacity addition schedule looks like for GAK Sejong Data Center? Second, we've seen from news articles that you're engaged in discussions regarding data centers in Middle East and in Latin America. Can you also give us an update on the roadmap and the structure?

[Translator]: Thank you for taking my question. I am Joon-ho Lee from Hana Securities, have two questions regarding AIDC business. Can you give us an update as to what your capacity addition schedule looks like for GAK Sejong Data Center? Second, we've seen from news articles that you're engaged in discussions regarding data centers in Middle East and in Latin America. Can you also give us an update on the roadmap and the structure?

Speaker #7: And second, we've seen from news articles that you're engaged in discussions regarding 데이터센터 in the Middle East and in Latin America. Can you also give us an update on the roadmap and the structure?

Speaker #7: 네 저희 정확한 스케줄은 이천이십칠 년 상반기에 오십오 메가 이십칠 년 말에는 백 메가 그리고 이십팔 년엔 이백 메가를 목표로 하고 있다고 말씀을 드렸는데요. 지금 이백 메가까지는 저희가 신속하게 시장을 진입을 하기 위해서 임대 외부의 상면을 최대한 활용하는 방향으로 진행을 하고 있고 이 부분은 거의 대부분 확보한 상태입니다.

Soo-Yeon Choi: 저희 정확한 스케줄은 2027년 상반기에 55메가, 27년 말에는 100메가, 그리고 28년에는 200메가를 목표로 하고 있다고 말씀을 드렸는데요. 지금 200메가까지는 저희가 신속하게 시장을 진입을 하기 위해서 임대 외부의 상면을 최대한 활용하는 방향으로 진행을 하고 있고, 이 부분은 거의 대부분 확보한 상태입니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: So in terms of the timeline for ARDC we've already previously communicated that by the first half of twenty seven the capacity will be fifty five mega megawatt and by end of twenty seven hundred and by twenty twenty eight an accumulative basis two hundred mega.

Operator: In terms of the timeline for AIDC, we've already previously communicated that by H1 2027, the capacity will be 55 MW, by end of 2027, 100 MW, and by 2028, on a cumulative basis, 200 MW. That is going to be our target. Up until the 200 MW milestone, we are going to move quickly into entering into the market, and we have completely sourced and have had sourced the external, the server rack space as much as possible for rental purpose.

[Translator]: In terms of the timeline for AIDC, we've already previously communicated that by H1 2027, the capacity will be 55 MW, by end of 2027, 100 MW, and by 2028, on a cumulative basis, 200 MW. That is going to be our target. Up until the 200 MW milestone, we are going to move quickly into entering into the market, and we have completely sourced and have had sourced the external, the server rack space as much as possible for rental purpose.

Speaker #7: That is going to be our target. And up until the two hundred meg milestone we are going to move quickly into entering into the market and we have a completely sourced and and have have have sourced the the external the server rack space as much as possible for rental purposes.

Speaker #7: 각 세종의 경우를 좀 더 상세히 말씀드리면, 각 세종은 크게 두 개의 부지로 나뉘어져 있고, 현재 한 개 부지에 대해서는 건물이 증설돼 있는 반면, 그 안에 있는 물량의 경우에는 지금 한 3분의 1 정도 물량은 저희가 소화를 하고 있고, 나머지 3분의 2 물량을 지금 확장하는 그런 사업을 진행하고 있습니다.

Soo-Yeon Choi: GAK 세종의 경우를 좀 더 상세히 말씀드리면, GAK 세종은 크게 두 개의 부지로 나뉘어져 있고, 현재 한 개 부지에 대해서는 건물이 증설돼 있는 반면, 그 안에 있는 물량의 경우에는 지금 한 3분의 1 정도 물량은 저희가 소화를 하고 있고, 나머지 3분의 2 물량을 지금 확장하는 그런 사업을 진행하고 있습니다. 특히 이후에 1기가로 확장하는 단계에서 나머지 2기 건물에 대한 그런 확장을 포함해서 그린필드 방식을 자체 구축하는 전략도 병행할 계획입니다.

Speaker #7: 특히 이제 이후에 일기과로 확장하는 단계에서, 나머지 이기 건물에 대한 그런 확장을 포함해서 그린필드 방식을 자체 구축하는 전략도 병행할 계획입니다. So, on 각 세종 데이터센터, there are two sites basically. For one site, the capacity addition has been more or less complete.

Soo-yeon Choi: [Foreign language]

Operator: On GAK Sejong Data Center, there are 2 sites. Basically, for one site, the capacity addition has been more or less complete. So we are able to cater to one-third of the required volume. Right now, what we're doing is expanding on the remaining two-third. Afterwards, we will continuously expand our capacity to one giga scale. For the remainder of the 2 sites, there is going to be also some greenfield development taking place in parallel.

[Translator]: On GAK Sejong Data Center, there are 2 sites. Basically, for one site, the capacity addition has been more or less complete. So we are able to cater to one-third of the required volume. Right now, what we're doing is expanding on the remaining two-third. Afterwards, we will continuously expand our capacity to one giga scale. For the remainder of the 2 sites, there is going to be also some greenfield development taking place in parallel.

Speaker #7: So we are able to cater to one-third of the required volume, and right now what we're doing is expanding on the remaining two-thirds.

Speaker #7: Afterwards, we will continuously expand our capacity to one gigascale, and for the remainder of the two sites, there is also going to be some greenfield development taking place in parallel.

Speaker #7: 중동의 경우에는 현재 어, 굉장히 구체적으로 데이터센터 구축 및 클라우드 스택에 대한 파트너십이 논의 중이고, 이 부분은 저희가 좀 더 구체적으로 확정되는 대로 시장에 공유드릴 수 있을 것으로 전망하고 있습니다.

Soo-Yeon Choi: 중동의 경우에는 현재 굉장히 구체적으로 데이터센터 구축 및 클라우드 스택에 대한 파트너십이 논의 중이고, 이 부분은 저희가 좀 더 구체적으로 확정되는 대로 시장에 공유드릴 수 있을 것으로 전망하고 있습니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: For the Middle Eastern market, right now we're in the process of implementing a build-out for the 데이터센터, and we are looking to gain cloud-related partnership.

Operator: For the Middle Eastern market, right now we're in the process of implementing a buildup for the data center, we are looking to gain cloud related partnership. Once we have that determined, we will come back to you and make that additional communication.

[Translator]: For the Middle Eastern market, right now we're in the process of implementing a buildup for the data center, we are looking to gain cloud related partnership. Once we have that determined, we will come back to you and make that additional communication.

Speaker #7: And once we have that determined we will come back to you and make that additional communication. 남미의 경우에는 굉장히 초기적인 어 이야기가 진행 중인데 우선 저희의 전략은 일 어 앞서 제가 말씀드린 대로 이백 메가가 넘어가는 부분부터 일기과 아트까지 확충되는 과정에서는 국내의 수요나 그린필드만으로는 부족하고 있고 반드시 글로벌 파트너가 필요하다고 판단하고 있습니다.

Soo-Yeon Choi: 남미의 경우에는 굉장히 초기적인 이야기가 진행 중인데, 우선 저희의 전략은 앞서 제가 말씀드린 대로 200MW가 넘어가는 부분부터 1GW까지 확충되는 과정에서는 국내의 수요나 그린필드만으로는 부족하고 있고, 반드시 글로벌 파트너가 필요하다고 판단하고 있습니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: Now, for Latin America, our discussions are only in the initial and early phase, and as I've previously mentioned, as we move from 200 meg to 1 giga scale during the process, the domestic demand and greenfield is not going to be ample enough, so we definitely need global partners.

Operator: Now, for Latin America, our discussions are only in the initial and early phase. As I previously mentioned, as we move from 200MW to 1GW scale, during that process, the domestic demand and greenfield is not going to be ample enough. We definitely need global partners.

[Translator]: Now, for Latin America, our discussions are only in the initial and early phase. As I previously mentioned, as we move from 200MW to 1GW scale, during that process, the domestic demand and greenfield is not going to be ample enough. We definitely need global partners.

Speaker #7: 특히 학습 수요를 충당할 수 있는 것은 지역보다도 굉장히 저렴한 전기 요금이라든지, 그린필드 구축에 대한 비용을 전략적으로 판단할 수 있는 그런 글로벌 파트너를 저희가 확보하고 있고, 또한 이 관점에서는 저희가 강점을 가지고 있는 소버린 AI에 대한 수요도 함께 충족할 수 있는 그런 파트너들과 다양하게 협의를 진행하고 있습니다.

Soo-Yeon Choi: 특히 학습 수요를 충당할 수 있는 것은 지역보다도 굉장히 저렴한 전기 요금이라든지 그린필드 구축에 대한 비용을 전략적으로 판단할 수 있는 그런 글로벌 파트너를 저희가 확보를 하고 있고, 또한 이 관점에서는 저희가 강점을 가지고 있는 Sovereign AI에 대한 수요도 함께 충족할 수 있는 그런 파트너들과 다양하게 협의를 진행하고 있습니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: And when it comes to the demand for training purposes, basically, it's quite important to think about the electricity or the power-related cost, to reasonably price power-related costs, as well as the greenfield buildout relevant expenses and where actually we have a certain level of strength. And so, we are in the process of looking at and discussing with potential global partners. Also, solving AI demand is an important aspect as well.

Operator: When it comes to the demand for training purposes, basically it's quite important to think about the electricity or the reasonably priced power-related cost, as well as the greenfield build-out relevant expenses and where actually we have a certain level of strength. We are in the process of looking and discussing with potential global partners. Sovereign AI demand is an important aspect as well. We are in talks with various different potential partners to carry out those efforts.

[Translator]: When it comes to the demand for training purposes, basically it's quite important to think about the electricity or the reasonably priced power-related cost, as well as the greenfield build-out relevant expenses and where actually we have a certain level of strength. We are in the process of looking and discussing with potential global partners. Sovereign AI demand is an important aspect as well. We are in talks with various different potential partners to carry out those efforts.

Speaker #7: So we are in talks with you know various different potential partners to to to carry out those efforts. 저희 쪽에는 이백 메가와트까지 저희가 말씀드린 국내의 수요는 저희가 이미 예측하고 있고 굉장히 구체화된 에이아이 팩토리 사업의 출발점이자 레퍼런스이고 앞으로 성장의 그 볼류라고 저희가 판단하고 있는 부분은 글로벌 에이아이 컴퓨팅 시장 전체 특히 그 데이터 주권을 지키면서 에이아이 인프라를 확보하려 하고 있는 소버린 수요가 있는 글로벌 시장이라고 어 말씀드리겠습니다.

Soo-Yeon Choi: 결국에는 200MW까지 저희가 말씀드린 국내의 수요는 저희가 이미 예측하고 있고 굉장히 구체화된 AI 팩토리 사업의 출발점이자 레퍼런스이고, 앞으로 성장의 볼륨이라고 저희가 판단하고 있는 부분은 글로벌 AI 컴퓨팅 시장 전체, 특히 데이터 주권을 지키면서 AI 인프라를 확보하려고 하고 있는 Sovereign 수요가 있는 글로벌 시장이라고 말씀드리겠습니다.

Soo-yeon Choi: [Foreign language]

Speaker #7: So up until the 200 megawatt scale, you know, domestic demand is going to play an important aspect, and you know we've made the appropriate forecasting when it comes to AI Factory. Therefore, it's going to be an important starting point for us, and it will work as an important reference point.

Operator: Up until the 200MW scale, domestic demand is going to play an important aspect. We've made the appropriate forecasting based on that. When it comes to AI Factory, therefore it's going to be an important starting point for us, and it will work as an important reference point. However, the true demand lies in the global market when it comes to the Sovereign AI-related demand and requirements. It is quite important for us to make endeavors in that direction to gain that global AI computing market positioning.

[Translator]: Up until the 200MW scale, domestic demand is going to play an important aspect. We've made the appropriate forecasting based on that. When it comes to AI Factory, therefore it's going to be an important starting point for us, and it will work as an important reference point. However, the true demand lies in the global market when it comes to the Sovereign AI-related demand and requirements. It is quite important for us to make endeavors in that direction to gain that global AI computing market positioning.

Speaker #7: However, the true demand lies in the global market when it comes to the sovereign AI-related demand and requirements. So it is quite important for us to make endeavors in that direction to gain that global AI computing market positioning.

Speaker #1: 네, 그러면 시간 관계상 마지막 질문 하나만 더 받고 끝내겠습니다.

Paul Choi: 네, 그러면 시간 관계상 마지막 질문 하나만 더 받고 끝내겠습니다.

Paul Choi: [Foreign language]

Speaker #2: 마지막으로 질문해 주실 분은 HSBC의 김준현 님입니다. The last question will be presented by Junhyun Kim from HSBC. Please go ahead with your question.

Operator: 마지막으로 질문해 주실 분은 HSBC의 김준현 님입니다.

Operator: [Foreign language]

Operator: The last question will be presented by Junhyun Kim from HSBC. Please go ahead with your question.

[Translator]: The last question will be presented by Junhyun Kim from HSBC. Please go ahead with your question.

Speaker #4: 아, 네. 질문 기회 감사드립니다. 저 두 가지 질문이 있는데요. 첫 번째는 이제 AI DC 관련해서 설명 많이 해주셨는데, 저희가 이제 AI 인프라 시장에 대해서 최근에 기대감이랑 동시에 또 집값 하락하면 GPU 임대 가격 하락하고, AI 데이터센터 수익성에도 좀 부정적 영향을 미칠 수 있는 우려가 있는 것 같습니다.

Junhyun Kim: 질문 기회 감사드립니다. 두 가지 질문이 있는데요. 첫 번째는 AIDC 관련해서 설명을 많이 해주셨는데 저희가 AI 인프라 시장에 대해서 최근에 기대감이랑 동시에 또 칩 가격 하락하면 GPU 임대 가격 하락하고 AI 데이터센터 수익성에도 부정적인 영향을 미칠 수 있는 우려가 있는 것 같습니다. 여기에 대해서 경영진분들 생각이 궁금하고요. 또 TPU처럼 다른 아키텍처 진영이 커지다 보면 저희가 NVIDIA 비싼 칩에 저희 사업이 묶이는 거에 대한 리스크는 어떻게 보시는지 궁금합니다. 아무래도 AI 학습할 때는 GPU가 절대적이라도 요즘에는 AI 에이전틱으로 확대가 되면 추론이 되고, 또 추론 쪽은 GPU 칩 아니라 다른 칩들 사용 비중이 올라가는 것 같아서 그래서 여쭤보고 싶습니다. 그리고 두 번째는 재무 변화에 대한 질문인데요. AI 데이터센터 사업, 또 두나무, 그다음에 커머스 확대처럼 저희가 사업 확장이 최근에 여러 분야에서 일어나고 있다 보니까 향후에 마진 가이던스나 현금흐름 변화에 대해서 어떻게 보시는지 전망 공유해 주시면 감사하겠습니다.

Speaker #4: 여기에 대해서 좀 경영진분들 생각이 궁금하고요. 또 이 TPU처럼, 이제 진영이 아주 커지다 보면 저희가 엔비디아처럼 좀 비싼 칩에 저희 사업이 묶이는 거에 대한 리스크는 어떻게 보시는지 궁금합니다.

Speaker #4: 아무래도 AI 학습할 때는 GPU가 절대적이지만, 요즘에는 또 AI가 에이전틱으로 확대가 되면 추론이 되고, 또 추론 쪽은 GPU 칩이 아니라 다른 칩들 사용 비중이 올라가는 것 같아서요.

Speaker #4: 그래서 좀 여쭤보고 싶습니다. 그리고 두 번째는 재무 변화에 대한 질문인데요. AI 데이터센터 사업, 또 두나무, 그다음에 커머스 확대처럼 저희가 사업 확장이 최근에 여러 분야에서 일어나고 있다 보니까, 좀 향후에 마진 가이던스나 현금 흐름 변화에 대해서 어떻게 보시는지 전망 공유해주시면 감사하겠습니다.

Junhyun Kim: [Foreign language]

Operator: Thank you for taking my question. My first one has to do with your AIDC business. There is building anticipation and expectation on AI infrastructure and business, but there is also at the same time some concern that if the chip price starts to fall, whether that will have some negative impact on your AIDC business. With the greater adoption of TPU chips based upon the ASIC architecture. If you are bogged down by the NVIDIA partnership, will that not have some negative impact? For training purposes, AI GPU is quite important, but we're moving into AI agentic phase where inference is considered more important. It may be the case that the importance of the GPU chips may be less compared to it was in the past. Second is on your financial implications.

[Translator]: Thank you for taking my question. My first one has to do with your AIDC business. There is building anticipation and expectation on AI infrastructure and business, but there is also at the same time some concern that if the chip price starts to fall, whether that will have some negative impact on your AIDC business. With the greater adoption of TPU chips based upon the ASIC architecture. If you are bogged down by the NVIDIA partnership, will that not have some negative impact? For training purposes, AI GPU is quite important, but we're moving into AI agentic phase where inference is considered more important. It may be the case that the importance of the GPU chips may be less compared to it was in the past. Second is on your financial implications.

Speaker #7: Thank you for taking my question. My first one has to do with your AIDC business. There is building anticipation and expectation on AI infrastructure and business, but there's also at the same time some concern that if the chip price starts to fall, whether that will have some negative impact on your AIDC business.

Speaker #7: And also, with the greater adoption of TPU chips based on the ASICs architecture, if you are—if you are bogged down by the NVIDIA partnership, will that not have some negative impact? Because for training purposes, AI GPU is quite important, but we're moving into an AI agentic phase where inference is considered more important.

Speaker #7: So it may be the case that the importance of the GPU chips may be less compared to what it was in the past. Second is on your financial implications.

Speaker #7: You're making quite a bit of investment and expansion into AIDC, and also there's the Dunamu partnership, as well as your focus on the commerce business. How would that impact your margin and cash flow movement going forward?

Operator: You're making quite a bit of investment and expansion into AIDC, there's the Dunamu partnership and your focus on commerce business. How will that impact your margin and cash flow movement going forward?

[Translator]: You're making quite a bit of investment and expansion into AIDC, there's the Dunamu partnership and your focus on commerce business. How will that impact your margin and cash flow movement going forward?

Speaker #4: 그 첫 번째 칩 가격 관련해서는요. 저희가 이제 GPU의 파이낸싱을 통해서, 투자자인 저희 브루필드 등과 함께 필요한 GPU 용량 수에 맞게 적시에 공급받게 되는데요.

Soo-Yeon Choi: 첫 번째 칩 가격 관련해서는요. 저희가 GPU의 파이낸싱을 통해서 투자자인 Brookfield 등과 함께 필요한 GPU 용량을 수요에 맞게 적시에 공급받게 되는데요. 일정 기간 수요 공급 간의 리드 타임 간격은 존재하겠지만 지속적인 추가 발주 시에 해당 시점에 칩 가격이 하락하면 실제 구입 단가도 함께 낮아질 것으로 예상합니다.

Speaker #4: 일정 기간 뭐 어떤 수요 공급 간의 리 리드 타임 간격은 뭐 존재하겠지만 지속적인 추가 발주 시에 해당 시점에 뭐 집 가격이 하락하면 실제 구입 단가도 함께 낮아질 것으로 예상합니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: Regarding your question on chip pricing, as you know, we have taken out a GPU financing arrangement, and we will be able to source the needed GPU capacity on a timely basis through that arrangement with our investor Brookfield.

Operator: Regarding your question on chip pricing. As you know, we have taken out a GPU financing arrangement, we will be able to source the needed GPU capacity on a timely basis through that arrangement with our investor, Brookfield. There will be a lead time gap between demand and supply. Later on when there is a decline in the chip price, that will also translate into a lower purchasing unit cost from our perspective.

[Translator]: Regarding your question on chip pricing. As you know, we have taken out a GPU financing arrangement, we will be able to source the needed GPU capacity on a timely basis through that arrangement with our investor, Brookfield. There will be a lead time gap between demand and supply. Later on when there is a decline in the chip price, that will also translate into a lower purchasing unit cost from our perspective.

Speaker #7: There will be a lead time gap between demand and supply. However, later on, when there is a decline in the chip price, that will also translate into a lower purchasing unit cost from our perspective.

Speaker #4: 가령 뭐 집 가격이 만약에 절반으로 낮아지면 저희가 GPU 파이낸싱에서 동일 금액으로 구입 가능한 컴퓨팅 인프라가 뭐 두 배가 되는 거지 저희가 이미 어떤 확보한 구십억 달러를 가지고 현재 가격으로 뭐 일시에 총량을 계약하는 구조가 아니기 때문에 저희 에이아이디시 뭐 집 가격의 변화가 에이아이디시 수익성에 미칠 그런 부정적 영향은 굉장히 제한적일 것으로 생각합니다.

Hee-Chul Kim: 가령 칩 가격이 만약에 절반으로 낮아지면 저희가 GPU 파이낸싱에서 동일 금액으로 구입 가능한 컴퓨팅 인프라가 두 배가 되는 거지, 저희가 이미 확보한 90억 달러를 가지고 현재 가격으로 일시에 총량을 계약하는 구조가 아니기 때문에, 저희 AIDC, 칩 가격의 변화가 AIDC 수익성에 미칠 그런 부정적 영향은 굉장히 제한적일 것으로 생각합니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: So what that means is, if the chip price actually falls by fifty percent, basically under our GPU financing scheme, we will be able to purchase double the computing infrastructure with that amount of money.

Operator: What that means is, if the chip price actually falls by 50%, basically under our GPU financing scheme, we will be able to purchase double the computing infrastructure with that amount of money. That $9 billion is not a fixed basis upon which a volume purchase is fixed. It's not going to be that because of the changes or the lowering or the decline in the chip price, that will not be having an impact on our bottom line.

[Translator]: What that means is, if the chip price actually falls by 50%, basically under our GPU financing scheme, we will be able to purchase double the computing infrastructure with that amount of money. That $9 billion is not a fixed basis upon which a volume purchase is fixed. It's not going to be that because of the changes or the lowering or the decline in the chip price, that will not be having an impact on our bottom line.

Speaker #7: So that that nine billion US dollar is not a fixed basis upon which a volume purchase is fixed. So it's not going to be that because of the changes or the lowering or the or the decline in the chip price that you know that will not that will not be having or it will only it that will not be having a impact on our bottom line.

Speaker #4: 그 TPU 등은 커스텀 ASIC 칩 관련해서는요. 저희가 이제 추론 시장에서는, NVIDIA 칩 사용의 비중이 올라갈 수 있을 것으로는 예상을 하지만, 그렇다고 해서 모든 기업들이 다 다른 제조사 칩을 사용할 수 있는 것은 아니라고 생각합니다.

Hee-Chul Kim: GPU 등 custom ASIC chip 관련해서는요. 저희가 이제 추론 시장에서는 NVIDIA 칩 사용의 비중이 올라갈 수 있을 것으로는 예상을 하지만, 그렇다고 해서 모든 기업들이 다 다른 제조사 칩을 사용할 수 있는 것은 아니라고 생각합니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: Regarding the TPU custom ASIC chips in the inference market it is possible that chips that is made by you know other companies other than NVIDIA so non NVIDIA chip usage may go up but that does not mean that all of the companies can all resort to using a chip that's made by other manufacturers.

Operator: Regarding the TPU, custom ASIC chips in the inference market, it is possible that chips that is made by other companies other than NVIDIA. Non-NVIDIA chip usage may go up, but that does not mean that all of the companies can all resort to using a chip that's made by other manufacturers.

[Translator]: Regarding the TPU, custom ASIC chips in the inference market, it is possible that chips that is made by other companies other than NVIDIA. Non-NVIDIA chip usage may go up, but that does not mean that all of the companies can all resort to using a chip that's made by other manufacturers.

Speaker #4: 뭐 이미 알려진 대로 엔비디아 같은 경우는 그런 쿠다 생태계를 통해서 누구나 쉽게 이제 접근이 가능하지만, 만약에 다른 칩을 사용할 경우에 사용하는 AI 모델별로 해당 칩과 최적화 작업을 해야지만 최적의 토큰 출력 속도 등을 얻을 수 있는 구조입니다.

Hee-Chul Kim: 이미 알려진 대로 NVIDIA 같은 경우는 그런 CUDA 생태계를 통해서 누구나 쉽게 접근이 가능하지만, 만약에 다른 칩을 사용할 경우에 사용하는 AI 모델별로 해당 칩과 최적화 작업을 해야지만 최적의 토큰 출력 속도 등을 얻을 수 있는 구조입니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: Because right now, all the enterprises can actually access NVIDIA because NVIDIA has put in place the CUDA ecosystem, so there's easy access. But if an enterprise decides to use a chip from another supplier, then basically you have to, depending on the AI model, go through an optimization process.

Operator: Right now, all the enterprises can actually access NVIDIA because NVIDIA has put in place the CUDA ecosystem. There's easy access. If an enterprise decides to use a chip from another supplier, then basically you have to, depending on the AI model, go through optimization process. Only then would you be able to enjoy the best token output speed.

[Translator]: Right now, all the enterprises can actually access NVIDIA because NVIDIA has put in place the CUDA ecosystem. There's easy access. If an enterprise decides to use a chip from another supplier, then basically you have to, depending on the AI model, go through optimization process. Only then would you be able to enjoy the best token output speed.

Speaker #7: Only then would you be able to enjoy the best token output speed.

Speaker #4: 그 무엇보다도, 저희 향후 2028년까지 저희가 200메가와트를 서빙하고자 하는 페이즈 1 단계에서는, 적어도 기존 GPU의 경쟁력에 크게 유의미한 변화가 있을 것이라고 이제 감히 예측하기는 좀 어려운 것 같습니다.

Hee-Chul Kim: 무엇보다도 저희 향후 28년까지 저희가 200MW를 서빙하고자 하는 phase 1 단계에서는 적어도 기존 GPU의 경쟁력에 크게 유의미한 변화가 있을 것이라고 감히 예측하기는 좀 어려운 것 같습니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: And also, in particular, by 2028, where our objective is to serve that 20 meg. So, which is within the phase one, we believe that—and it's quite hard to believe—that there will be any significant changes to the competitive edge that the current GPU actually has.

Operator: Also in particular by 2028, where our objective is to serve that 20 MW, which is within phase I, we believe that, and it's quite hard to believe that there will be any significant changes to the competitive edge that current GPU actually has.

[Translator]: Also in particular by 2028, where our objective is to serve that 20 MW, which is within phase I, we believe that, and it's quite hard to believe that there will be any significant changes to the competitive edge that current GPU actually has.

Speaker #4: 다만 중장기적으로는 어떤 형태로든 기술의 변화나 트렌드의 변화가 있을 수는 있기에, 저희는 이런 트렌드나 생태계의 변화를 면밀히 추적해서 변화가 발생 시에 유연하게 대응할 수 있는 방향으로 사업 설계를 했고, 앞으로도 계속 그렇게 해나갈 계획입니다.

Hee-Chul Kim: 다만 중장기적으로는 어떤 형태로든 기술의 변화나 이런 트렌드의 변화가 있을 수는 있기에, 저희가 이런 트렌드나 생태계의 변화를 좀 면밀히 추적을 해서 변화가 발생 시에 저희가 유연하게 대응할 수 있는 방향으로 사업 설계를 했고, 앞으로 계속해 나갈 계획입니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: However, there may be sudden changes in the way the technology is deployed and changes in the trends, so we are very closely monitoring those changes.

Operator: However, there may be sudden changes in the way the technology is deployed and the changes in the trends. We will very closely monitor those changes. I can assure you that we have put in place a business plan and design that will ensure that we can respond in a flexible manner.

[Translator]: However, there may be sudden changes in the way the technology is deployed and the changes in the trends. We will very closely monitor those changes. I can assure you that we have put in place a business plan and design that will ensure that we can respond in a flexible manner.

Speaker #7: But I can assure you that we have put in place a business plan and design that will ensure we can respond in a flexible manner.

Speaker #4: 마지막으로 그 형론 관련해서 이제 세 가지 사업을 예시로 주셨는데요. 첫 번째 AIDC 사업은 계속 말씀드리는 대로 애셋 라이트한 사업이기 때문에 캐시 플로우와는 크게 영향이 없을 것 같고요.

Hee-Chul Kim: 마지막으로 현금 관련해서 세 가지 사업을 예시를 주셨는데요. 첫 번째 AIDC 사업은 계속 말씀드리는 대로 asset-light한 사업이기 때문에 캐시플로우에는 크게 영향이 없을 것 같고요.

Hee-cheol Kim: [Foreign language]

Speaker #7: You also asked about cash flow impact. AIDC, once again, because it's an asset-light business structure, will not have much of an impact on cash flow.

Operator: You also asked about our cash flow impact AIDC. Once again, because it's an asset-light business structure, will not have much of an impact on cash flow.

[Translator]: You also asked about our cash flow impact AIDC. Once again, because it's an asset-light business structure, will not have much of an impact on cash flow.

Speaker #4: 두나무는 이제 뭐 결합이 최종 돼야 봐야겠지만 두나무와의 결합이 캐시 플로우에 대한 뭐 마이너스 요인보다는 오히려 두나무가 가진 뭐 현금성 자산을 뭐 저희가 연결 관점에서 또 활용할 수 있는 플러스 요인이라고 생각을 하고 있고요.

Hee-Chul Kim: 두나무는 결합이 최종되어 봐야겠지만, 두나무와의 결합이 캐시플로우에 대한 마이너스 요인보다는 오히려 두나무가 가진 현금성 자산을 저희가 연결 관점에서 또 활용할 수 있는 플러스 요인이라고 생각을 하고 있고요.

Hee-cheol Kim: [Foreign language]

Speaker #7: In terms of 두나무, the arrangement with 두나무, of course we have to wait and see how it actually, you know, actually—the end state after it is closed.

Operator: In terms of Dunamu, the arrangement with Dunamu, of course, we have to wait and see how it actually, the end state of after it is closed. Rather than it having a negative impact on our cash flow from a consolidation perspective, there will be an opportunity for us to make use of those cash and the cash equivalent assets.

[Translator]: In terms of Dunamu, the arrangement with Dunamu, of course, we have to wait and see how it actually, the end state of after it is closed. Rather than it having a negative impact on our cash flow from a consolidation perspective, there will be an opportunity for us to make use of those cash and the cash equivalent assets.

Speaker #7: But rather than it having a negative impact on our cash flow from a consolidation perspective, there will be an opportunity for us to make use of those cash and cash equivalent assets.

Speaker #4: 그러니까 공업 사업 관련해서는, 뭐 경상적인 프로모션의 경우 당연히 매출 구의 어떤 상승을 기대하면서 지출하는 거기 때문에, 거기에 일부 연동되는 부분이 있고, 물류 투자 같은 경우에는 아까 수연 대표께서 말씀하셨지만, 이건 역시 에셋 라이트한 그런 구조를 지향하고 있습니다.

Hee-Chul Kim: 커머스와 관련해서는 경상적인 프로모션의 경우 당연히 매출의 어떤 상승을 기대하면서 지출하는 거기 때문에 거기에 일부 연동되는 부분이 있고, 물류 투자 같은 경우에는 아까 CEO께서도 말씀하셨지만, 이것 역시 asset-light한 그런 구조를 지향을 하고 있습니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: Now, for Commerce, the reason why we run promotions is because we look forward to higher top-line growth. And on the Logistics side, as our CEO has mentioned, our logistics investment approach is also based on being asset-light.

Operator: Now, for commerce, the reason why we run promotions is because we look forward to higher top-line growth. On the logistics side, as our CEO has mentioned, our logistics investment approach is also based on asset-light concept.

[Translator]: Now, for commerce, the reason why we run promotions is because we look forward to higher top-line growth. On the logistics side, as our CEO has mentioned, our logistics investment approach is also based on asset-light concept.

Speaker #4: 그 마진 가이던스 같은 경우에는 저희가 이제 하반기에, 특히 엠페이 커넥트 단말기에 공격적인 확대 노력 등에 따라서 비용 투자가 좀 있을 수 있습니다.

Hee-Chul Kim: 마진 가이던스 같은 경우에는 저희가 이제 하반기에 특히 N Pay Connect 단말기에 공격적인 확대 노력 등에 따라서 비용 투자가 좀 있을 수 있습니다. 그래서 하반기에는 상반기 대비로는 낮은 수준의 영업이익과 이익률이 일시에 발생할 수는 있는데요. 이것 자체가 저희 현금 흐름이나 투자 여력과 크게 관련된 그런 수준까지는 아닐 것으로 생각합니다.

Speaker #4: 그래서 하반기에는 상반기 대비로는 좀 낮은 수준의 영업이익과 이익률이 일시에 이제 발생할 수는 있는데요. 이것 자체가 저희의 현금 흐름이나 투자 여력과 크게 상관, 관련된 그런 수준까지는 아닐 것으로 생각합니다.

Hee-cheol Kim: [Foreign language]

Speaker #7: In terms of the margin guidance in the second half of the year, we will be further expanding investment support for NPA Connect. So there may be some incremental expense and investment that will emerge.

Operator: In terms of the margin guidance in the H2, we will be further expanding investment support for Npay Connect. There may be some incremental expense and investment that will emerge. However, so compared to the H1, our operating profit and the profit per se may go down slightly. However, it will not be to the extent that will impact our cash flow or our investment capabilities.

[Translator]: In terms of the margin guidance in the H2, we will be further expanding investment support for Npay Connect. There may be some incremental expense and investment that will emerge. However, so compared to the H1, our operating profit and the profit per se may go down slightly. However, it will not be to the extent that will impact our cash flow or our investment capabilities.

Speaker #7: However, compared to the first half of the year, our operating profit and the operating profit margin, as well as overall profit, may go down slightly.

Speaker #7: However, it will not be to the extent that will impact our cash flow or our investment capabilities.

Hee-Chul Kim: 네, 그러면 시간 관계상 이 정도로 2분기 실적 발표를 마치려고 합니다. 나머지 질문들은 저희 자본시장실로 문의해 주시면 성실히 답변드리겠습니다. 그러면 모든 참석자분들께 감사 말씀드리면서 앞으로도 많은 격려와 성원 부탁드리면서 마치겠습니다.

Speaker #4: 네, 그러면 시간 관계상 이 정도로 이번 분기 실적 발표를 마치려고 합니다. 나머지 질문들은 저희 자본시장실로 문의해 주시면 성실히 답변드리겠습니다. 그러면 모든 참석자분들께 감사 말씀드리면서, 앞으로도 많은 격려와 성원 부탁드리며 마치겠습니다.

Paul Choi: [Foreign langauge]

Operator: With that, we would like to now close the Q2 2026 NAVER earnings conference call. If you have more questions, please feel free to call us at the Capital Markets Office. Once again, thank you for joining us and thank you always for your encouragement and support.

[Translator]: With that, we would like to now close the Q2 2026 NAVER earnings conference call. If you have more questions, please feel free to call us at the Capital Markets Office. Once again, thank you for joining us and thank you always for your encouragement and support.

Speaker #7: With that, we would like to now close the second quarter 2026 NAVER earnings conference call. If you have more questions, please feel free to call us at the Capital Markets Division.

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