Lee Hae-jin, 58, founder of South Korean tech giant Naver, is set to return as chairman of the company’s board, seven years after stepping down to focus on global expansion. Industry analysts say his return signals a push to strengthen Naver’s artificial intelligence (AI) business. “Lee has been closely monitoring AI developments in the United States and China and believes that securing a breakthrough now is critical to Naver’s future competitiveness,” a tech industry source said. “His decision reflects a determination to lay the foundation for the next decade before it’s too late.”
According to industry officials on Feb. 4, Naver’s board plans to submit a proposal this week to reinstate Lee as an inside director ahead of the upcoming shareholder meeting. If approved in March, he is expected to assume the role of board chairman. “Lee will likely support CEO Choi Soo-yeon and the leadership team in accelerating AI and other future-focused initiatives,” another industry source said. A Naver representative declined to confirm the details, stating, “There is nothing we can verify at this time.”
Lee’s return is seen as a strategic move to bolster Naver’s AI ambitions. In 2021, the company introduced HyperCLOVA, its in-house large language model (LLM), followed by HyperCLOVA X in 2023, a generative AI designed to compete with OpenAI, Google, and Meta. Naver aims to develop HyperCLOVA X as a sovereign AI optimized for the Korean language and cultural landscape. The company has also invested nearly 1 trillion won ($689 million) in data centers in Chuncheon and Sejong to support AI expansion.
However, as global tech giants pour massive resources into AI development, Naver has struggled to keep pace. Despite posting record annual revenue last year, concerns over its AI competitiveness have grown. The company’s stock price, which was around 460,000 won ($316) four years ago, has since declined to the low 200,000 won ($137) range.
With Lee’s return to the board, industry observers expect his immediate priority to be strengthening Naver’s AI capabilities. His track record of turning Naver into South Korea’s dominant search engine—despite early market control by Yahoo and Google—demonstrates his ability to reshape industries. He was behind the creation of “Jisik-iN,” a user-driven Q&A platform that helped redefine online search in South Korea. “Naver is one of the few platform companies outside the U.S. that has managed to hold its ground against American tech giants,” an industry official said. “Lee appears determined to take direct responsibility for accelerating Naver’s AI competitiveness.”
Following his return, Naver is expected to ramp up efforts to enhance its AI ecosystem. Last year, the company partnered with Saudi Arabia’s Saudi Data and AI Authority (SDAIA) to develop an Arabic-language sovereign AI, a collaboration aimed at improving HyperCLOVA X’s capabilities while expanding Naver’s AI ecosystem through partnerships with tech firms like Nvidia and Intel.
The company is also set to accelerate its “on-service AI” strategy, which integrates AI across search, shopping, and other digital services. In the first quarter of this year, Naver plans to launch Naver Plus Store, an AI-powered shopping app, along with AI Briefing, an AI-enhanced search feature. Beyond AI applications, Naver is looking to secure next-generation technology, including the Gaudi 2 AI accelerator, developed in collaboration with Intel.
