Naver Pivots from Search to AI-Driven Commerce — Shopping App Hits Record 7.77M MAU

The Structural Question Facing a Search Giant

Naver Shifts Focus to AI-Driven Commerce, Boosts Shopping Growth

Planned Merger with Dunamu and record shopping sales drive strategic expansion as Nepleus app gains traction

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The rise of generative AI is casting growing uncertainty over the search business. As users increasingly ask ChatGPT or Perplexity directly instead of using search engines, the business model of companies built on search advertising faces fundamental disruption. South Korea's dominant portal Naver is confronting this structural shift head-on, accelerating its full pivot to shopping.

An industry insider's observation captures Naver's current positioning: "Naver is making all-out efforts to create a shopping service that can compete with Coupang."

Nepleus — Rapid Growth to 7.77 Million MAU

The concrete results of this pivot are visible in the rapid growth of the Naver Plus Store (Nepleus) shopping app. According to IGAWorks' Mobile Index data, March MAU reached a record 7.77 million — a 9% increase from February's 7.1 million. It ranks third behind Coupang (35.03 million) and 11st (8.15 million).

While the gap with Coupang remains significant, Nepleus ranked second in new app installations at 670,000, trailing only Temu (750,000). Launched just one year ago in March 2025, the app has surpassed 15 million cumulative downloads. Customer satisfaction tells an even more compelling story: Open Survey's "Online Shopping Trend Report 2026" shows Nepleus satisfaction at 84%, overtaking Coupang's 72%. Last year, Coupang led at 83% versus Nepleus' 79.7%.

The limited-edition trading platform Cream is also thriving. Sales grew 14% year-on-year to 202.5 billion Korean won, with operating losses improving by 8.8%. Originally sneaker-focused, the platform has diversified — sneakers now account for only 37% of transactions, with smartphones becoming the second-largest category, followed by apparel, luxury, and lifestyle.

Shopping AI Agent Fuels Growth

Naver's designated growth driver for its shopping business is the shopping AI agent, introduced in late February. It delivers personalized information and optimized product recommendations through AI, featuring real-time shopping trend analysis, automatic related product suggestions, and cart-saving functionality.

Starting in June, Naver will auto-suspend low-performing products on Smart Stores — its seller listing platform. Some sellers had been repeatedly listing identical products to boost page exposure, and this cleanup will improve AI recommendation accuracy. A Naver spokesperson explained: "Reducing excessive exposure of duplicate or out-of-stock items will improve search quality and enhance the shopping experience."

The newly launched fashion platform "Knockit" targets the 20-30 demographic with situation-based fashion recommendations — "A Good Day for Running" or "Going Out Lightly in Front of Home." Naver plans to deliver more sophisticated personalization on Knockit by linking it with the shopping AI agent.

From Search to Fintech — The Dunamu Merger's Significance

Another move symbolizing Naver's strategic center of gravity shift is the planned merger with Dunamu, operator of the Upbit cryptocurrency exchange. If completed, Naver's core business would clearly shift from "search and news" to "shopping and fintech."

FnGuide projects Q1 2026 revenue at 3.151 trillion Korean won (approximately 13% YoY increase) and operating profit at 564.7 billion Korean won (approximately 12% YoY increase) — both record highs. A securities industry analyst notes: "Shopping is at the center of Naver's performance this year. Strengthening free shipping and return benefits, combined with the shopping AI agent improving user convenience, is expected to further increase shopping users and transaction volumes."

Summary

Naver's transformation represents one answer to how search portals survive the AI era. Rather than passively watching search advertising erode to generative AI, Naver is shifting to shopping — a business directly tied to real demand — and amplifying the experience with AI agents. The gap with Coupang remains substantial, but the satisfaction reversal and rapid MAU growth indicate this strategy is beginning to work.

In Korea's e-commerce market, Shinsegae is pursuing AI infrastructure rebuilding, Naver is pressing forward with shopping plus AI agents, and Coupang and SSG are each charting their own paths. The approaches differ, but the common thread is clear: "how to implement AI in retail" has become the next competitive axis.