Naver headquarters in Seongnam, Gyeonggi Province / Courtesy of Naver

Naver shareholders expressed frustration over the company's plummeting share price and demanded plans for growth amid the fast-changing market, impacted by the rapid spread of AI services and the entrance of Chinese e-commerce platforms here, during a shareholders' meeting Tuesday.

At the annual shareholders' meeting, the internet giant's shareholders questioned the company's business strategy as its stock price, once reaching 465,000 won ($347) in 2021, dropped sharply to under 190,000 won.

They asked Naver's CEO Choi Soo-yeon how the company's e-commerce business could compete against Chinese e-commerce platforms such as AliExpress and Temu, which are rapidly increasing their presence here.

Choi responded that its main business is advertising and that she doesn't believe these platforms have a direct impact on Naver.

Naver CEO Choi Soo-yeon speaks during the company's shareholders' meeting at its office in Seongnam, Gyeonggi Province, Tuesday. Yonhap

"AliExpress [is] closely monitored by us for its aggressive moves, such as offering free shipping by leveraging its capital," Choi told shareholders. "It is difficult to judge that there is a direct impact."

She said the company is rather in a partnership relationship with the Chinese players in the advertising business.

"Naver's main business, advertising, is in cooperation with AliExpress and Temu. I think there is a lot we can do with overseas partners in the overseas direct purchase sector," she said.

During the meeting, another shareholder asked how much its ambitiously launched AI services, which were launched last year, have helped enhance the company's value.

"We will continue to experiment with expanding the application of AI search service Cue: because it is powerful when accuracy and timeliness, understanding of AI, and summarization capabilities are combined," the CEO said.

The company added that the listing of its online comics affiliate Naver Webtoon on the Nasdaq stock market of the United States in June is expected to enhance Naver's brand rather than detract from its existing value, amid concerns that this cultural content subsidiary could diminish its value.

"When a subsidiary raises outside funding, it doesn't lead to a loss of shareholder [gains]," Kim Nam-sun, chief financial officer of Naver, said. "In some cases, this can help its mother company enjoy upgraded corporate value, and that's the case with Naver Webtoon."

"Listing on the U.S. market will help in terms of improving brand value, as well as collaboration with Hollywood production companies, ultimately benefiting Naver's shareholder value," Kim added.

In revealing its business strategy, the Naver CEO said that this year, the company will focus on making it more competitive while prioritizing shareholder interests.

"In 2023, the company strengthened the competitiveness of its existing businesses and explored new growth chances. At the same time, we focused not only on achieving growth but also on attaining cost efficiency to solidify the internal strength of our businesses," the CEO told shareholders. "We will continue to prioritize shareholder interests and enhance the competitiveness of our businesses in the coming year."