Comparative Analysis of Digital Transformation and AI Transformation Strategies: Focusing on Naver and Kakao

This study examines the digital transformation (DX) and AI transformation (AX) strategies of Naver and Kakao, two leading South Korean platform companies. DX leverages digital technologies to revolutionize business models and operations, while AX integrates advanced AI technologies like machine learning and generative AI to enhance efficiency and personalization. Naver focuses on technological independence and global expansion through its proprietary HyperCLOVA X, emphasizing B2B solutions and industrial applications. Conversely, Kakao prioritizes user-centric services by integrating OpenAI's GPT into its ecosystem, enhancing everyday experiences via platforms like KakaoTalk. Both companies significantly influence Korea's digital ecosystem, with Naver driving industrial innovation and Kakao promoting digital inclusivity. However, challenges such as data security, algorithmic bias, and ethical concerns persist. This research provides strategic insights for businesses navigating DX and AX while contributing to policy development for sustainable digital growth in Korea.

Authors

Publication Details

Journal
Journal of Korea Service Management Society
Published
2025-09-30
DOI
https://doi.org/10.15706/jksms.2025.26.3.009
Primary Topic
Diverse Topics in Contemporary Research
Type
article
Field-Weighted Citation Impact
0.00
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article

Comparative Analysis of Digital Transformation and AI Transformation Strategies: Focusing on Naver and Kakao

Seon Yeop Kim, Y. Kim, Jin Wook Jeon
Journal of Korea Service Management Society
Diverse Topics in Contemporary Research
article

Comparative Analysis of Digital Transformation and AI Transformation Strategies: Focusing on Naver and Kakao

Seon Yeop Kim, Y. Kim, Jin Wook Jeon
article en

Abstract

This study examines the digital transformation (DX) and AI transformation (AX) strategies of Naver and Kakao, two leading South Korean platform companies. DX leverages digital technologies to revolutionize business models and operations, while AX integrates advanced AI technologies like machine learning and generative AI to enhance efficiency and personalization. Naver focuses on technological independence and global expansion through its proprietary HyperCLOVA X, emphasizing B2B solutions and industrial applications. Conversely, Kakao prioritizes user-centric services by integrating OpenAI's GPT into its ecosystem, enhancing everyday experiences via platforms like KakaoTalk. Both companies significantly influence Korea's digital ecosystem, with Naver driving industrial innovation and Kakao promoting digital inclusivity. However, challenges such as data security, algorithmic bias, and ethical concerns persist. This research provides strategic insights for businesses navigating DX and AX while contributing to policy development for sustainable digital growth in Korea.

Journal of Korea Service Management SocietyVol. 26(3)
Openalex Percentile: Top 65%
Diverse Topics in Contemporary Research
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