Naver to strengthen commerce biz through new logistics affiliate, delivery robots in Mideast

Detailed summary

(ATTN: CHANGES slug, headline, lead; RECASTS throughout with updates) SEOUL, Nov. 12 (Yo...

SEOUL, Nov. 12 (Yonhap) -- South Korean portal giant Naver Corp. unveiled Thursday plans to strengthen its growing commerce business both at home and abroad, including the establishment of a logistics affiliate.

The endeavors were announced during Naver's third-quarter earnings call. The IT company reported a sales increase of 10.7 percent during the July-September period, boosted by the strong growth of its commerce businesses.

"We will establish a company dedicated to logistics services to bring our delivery competitiveness up a notch and gradually strengthen our delivery infrastructure, focusing on leased logistics centers," Naver's Chief Executive Officer (CEO) Choi Soo-yeon said during the call.

The new affiliate will require around 1 trillion won in investments by 2030, Choi said. The proceeds will be financed through methods that can minimize the impact on the company's cash flow or revenue structure, she added.

Globally, Naver is also preparing an outdoor delivery service using its NURI robots in the Saudi Arabian capital of Riyadh, with the goal to launch the service by early next year.

The robots will move around based on the digital twin data, a virtual 3D replication of major Saudi cities built and powered by Naver. The portal operator plans to integrate its robot delivery service with Balady Plus, a Saudi map app, Choi added.

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