(EDITORIAL from Korea Herald on Aug. 14)

For two decades, navigating the internet in South Korea primarily meant navigating Naver. However, recent data reveals a shift in user behavior favoring Google. In July, Google's mobile app recorded 47.02 million monthly active users (MAUs) in Korea, surpassing Naver's 46.85 million MAUs, according to Mobile Index. Though MAU figures do not reflect the depth of user engagement or search volume, they do indicate a shift in user preferences.

Google has expanded its user base in Korea by about 8 million mobile users over the past 18 months, compared to Naver's slower growth. Google has also integrated its Gemini AI more deeply into search and mobile services, making it easier for users to access without opening a conventional search page. This shift towards AI-driven search is not limited to Google; ChatGPT, developed by OpenAI, has also seen significant growth in Korea, with 16.46 million MAUs in July alone.

This trend is supported by a 2025 government survey, which found that 60 percent of generative AI users have shifted at least half of their conventional search activity to artificial intelligence. Naver's dominance in traditional desktop and direct search traffic remains strong, but it now faces a technological challenge in adapting to this new AI-driven era.

The company's success was built on a dense domestic ecosystem of news, user-generated content, reviews, and community knowledge. However, Naver's closed ecosystem, filled with sponsored results and promotional content, makes it harder for users to find useful information. Furthermore, the shift to AI systems that can draw on the wider web diminishes the allure of a closed ecosystem.

The implications of this shift extend beyond Naver, as search traffic generates a steady stream of locally produced information. If domestic platforms lose users, the supply of high-quality Korean data could dwindle, weakening the foundation for locally developed AI. Policymakers should focus on creating conditions for competition, such as cheaper access to computing power and energy, clearer rules for AI training and copyright.

Naver should also consider its strategic direction, potentially cooperating with global AI developers or focusing on specialized services like logistics and commerce that offer more defensible opportunities. The July search numbers may change in the future, but the shift in how people search for information is likely to persist.