Naver, using the Japanese search market, aims to globally expand Korean-style ChatGPT

 

 

Naver's pursuit of search technology export to Japan is expected to become a cornerstone for the expansion of a "Korean-style ChatGPT" in the era of generative artificial intelligence (AI).

 

As AI technology innovation and service launches by major US big tech companies like Google and Microsoft continue, Korean IT industry leaders are feeling increased pressure as latecomers. In particular, Google, the operator of the world's largest search engine, has recently unveiled an AI chatbot called "Baad" that supports Korean, intensifying its presence in the Korean market. If Naver succeeds in exporting its search technology to Japan, it is analyzed that it could establish a foundation for the Korean-style ChatGPT ecosystem.

 

Naver is the leading company in the development of super-large AI in Korea. In early 2021, Naver developed the super-large AI model called "HyperCLOVA" and unveiled it as the first of its kind in Korea. Naver plans to introduce an upgraded version called "HyperCLOVAX" next month. Its biggest strength is its parameter scale of 20.4 billion, with Korean language data training volume over 6,500 times that of GPT-3.

 

In the highly cost-intensive AI development competition, Naver is emphasizing its "Korean specialization." Based on this specialization, Naver aims to expand exports to non-English-speaking markets. The plan is to first establish a foothold in the domestic market and then expand into overseas markets, starting with Japan. It is expected that the service of a Korean-style ChatGPT will be attached to the regions where Line, which has become the messenger for Japanese citizens, has successfully entered. If Naver's search technology succeeds in exporting to Japan, it could be a good starting point for the establishment of a Korean-style ChatGPT ecosystem.

 

Regarding this matter, it has been reported that SoftBank, Naver's joint venture partner in Yahoo Japan, has not yet made a clear statement. A Naver official stated, "We are in discussions with Yahoo Japan regarding various technology collaborations based on Naver's AI technologies, such as shopping recommendation technology AItems and location recommendation technology AirSpace, but nothing has been confirmed." However, it is observed that there is a high possibility of Naver's search technology being exported to Japan, as Naver and SoftBank are considering ways to maximize synergy. In this regard, Z Holdings, which operates Line and Yahoo Japan, announced its plan to merge with the two companies in February. The merged entity will be named "Line Yahoo." Especially considering the merger between Z Holdings and Line, it is reported that there is no reason to spend hundreds of billions of won annually on using Google's search engine technology.

 

Kim Yuwon, the CEO of Naver Cloud, mentioned in an interview with Maeil Business Newspaper in April, "Z Holdings, SoftBank, and Naver have come together to capture a meaningful market." He likened Naver's in-progress self-developed super-large AI model, HyperCLOVAX, to a broth that can create various dishes (services). He said about the collaboration with Line and SoftBank, "Using the broth (language model) created by Naver, we can make 'ramen' in Japan." It is interpreted as meaning that by incorporating AI technology into the data possessed by Line and Yahoo Japan, they can create locally specialized services for the Japanese market.

 

In Korea, positive news has been reported about Naver. Four companies, including Naver, have been selected to participate as suppliers of super-large AI models in the government's ecosystem construction project to activate super-large AI, with a budget of 2 billion won this year.

 

According to the Digital Platform Government Committee on the 5th, Naver, KT, Mind AI, and Vibe Company were selected for the "Private Advanced Super-Large AI Utilization Support Project" with a budget of 2 billion won this year. It is evaluated that Naver has secured a foundation to solidify its position in Korea.

 

Seong Nak-ho, the head of Naver Cloud's HyperScale AI technology, recently mentioned in an interview with the Financial Times that "Naver plans to provide an AI model similar to ChatGPT to overseas governments that express concerns about data control by the United States." He further explained that countries like Spain and Mexico, which are non-English-speaking nations and have sensitive political relationships with the US, are the target countries for creating AI systems considering their own political and cultural contexts. He emphasized the importance of having independent AI models due to the growing significance of data protection on a national level and mentioned that it could become a significant business opportunity.

 

In the context of global competition for AI market dominance, which has evolved into a power competition between nations beyond individual companies, the US and China prioritize the acquisition of outstanding AI companies and core technologies as their top national interests, providing comprehensive support.

 

On the other hand, domestic platforms like Naver and Kakao have raised concerns about the regulations imposed by the government and the National Assembly on the development of Korean-style ChatGPT. While legislative discussions are underway in the National Assembly to prevent monopolies by online platforms such as Kakao and Naver, the Fair Trade Commission, the relevant government agency, is expected to announce its policy direction on regulating online platform monopolies within this month. There are concerns that compared to global big tech companies, domestic platforms may face "discrimination" in terms of regulations.

 

An industry insider stated, "Competition between global big tech companies and nations is intensifying to secure leadership in AI technology. Particularly, Korea has become a battlefield." They expressed concerns that in such a situation, attention is being focused on domestic platform regulations, and there is a worry of missing the golden opportunity. They further argued that instead of the Online Platform Law, priority should be given to considering the AI Promotion Act.