"This Time, It's Truly Different"... As the AI Landscape Shifts, Should We Trust Naver and Kakao? [Weekend Money]

KB Securities Internet and Game Industry Analysis Report
NC and Kakao Selected as Top Picks in the Sector

With the commercialization of artificial intelligence (AI) agents, Korea’s leading platforms, Naver and Kakao, are expected to undergo a transformation into “AI platforms.” In the gaming industry, it appears that having narrative structures and powerful fandoms that AI cannot replicate will determine competitiveness.

Kakao Pangyo Agit, Seongnam, Gyeonggi Province. Photo by Jinhyung Kang aymsdream@

In its analysis report on the internet and gaming industries, KB Securities forecasted that the 12-month expected relative returns for these sectors will exceed the market average. KB Securities presented NC and Kakao as its top picks, setting target prices at 440,000 won and 69,000 won respectively, and recommended a “Buy” investment rating for both.

Regarding the platform sector, the report analyzed that a re-evaluation from “domestic platforms” to “AI platform” operators is likely to mark a turning point for valuation expansion. It noted that as AI agent-based shopping and payment ecosystems are established, platforms can be expected to achieve structural growth along with stronger lock-in effects. The report also added that with stablecoins emerging as a core payment infrastructure, the development of AI agent ecosystems is accelerating even further.

Such environmental changes are expected to be a significant turning point for Korea’s major platforms, Naver and Kakao. This shift could lead to the re-perception of these two companies not merely as improving advertising efficiency or increasing commerce transaction volumes, but as AI-based commerce infrastructure operators.

In the gaming industry, KB Securities projected that only companies with capabilities that AI cannot imitate will survive. Examples cited include narrative structures that can evoke users’ emotions, intellectual properties (IP) backed by strong fandoms, and operational capabilities built on long-term trust. In particular, companies with AAA (blockbuster) game development capabilities are expected to secure a competitive edge.

NC, which KB Securities named as its top pick in the gaming sector, recently achieved success with two new releases—Aion 2 and Lineage Classic—and is planning to launch the global title “Aion 2 Global” in September. KB Securities researchers Lee Jieun and Lee Jonggeon commented, “The key confirmed through recent performance is NC’s live service operational capabilities,” and added, “If global success follows, there is ample potential for a re-rating of the company’s valuation along with the acquisition of new global IPs.”

Meanwhile, KB Securities also gave a “Buy” recommendation for software stocks including Naver (target price: 280,000 won), NHN (47,000 won), Krafton (350,000 won), Netmarble (58,000 won), Shift Up (38,000 won), DoubleU Games (88,000 won), and Neowiz (29,000 won).

This content was produced with the assistance of AI translation services.