COVICO Acquires 70% of NAVER: What Happened?

On August 1, 2025, COVICO announced that it had increased its stake in NAVER to 70.78%. COVICO increased its stake through on- and off-market purchases, clearly stating its intention to strengthen management control by specifying ‘management influence’ as its purpose.

Why Did COVICO Increase Its Stake in NAVER?

COVICO’s move is interpreted as demonstrating confidence in NAVER’s growth potential. NAVER is securing future growth engines by entering new businesses such as 5G specialized networks and entertainment platforms. COVICO highly values this growth potential and is believed to be seeking to create business synergy by strengthening its management control.

So, What Will Happen to the Stock Price? Investment Strategies?

In the short term, COVICO’s increased stake is likely to have a positive impact on NAVER’s stock price. However, NAVER’s Q1 2025 earnings were sluggish, and macroeconomic uncertainties, such as high interest rates and rising raw material prices, persist. Therefore, investors should not be swayed by short-term stock price fluctuations and should evaluate NAVER’s mid- to long-term growth potential and risks in a balanced manner. Pay close attention to NAVER’s earnings improvement from Q2 onwards and COVICO’s future management strategy.

  • Key Investment Points
  • NAVER’s earnings from Q2 onwards
  • COVICO’s management strategy for NAVER
  • Changes in the macroeconomic environment (interest rates, exchange rates, raw material prices)