By Kwanwoo Jun


Naver shares posted their sharpest one-day gain in nearly a dozen years, helping South Korea's benchmark Kospi reverse early losses to finish higher.

The internet platform company's stock rose 18% to close at 243,500 won on Wednesday. That marked its steepest daily percentage gain since August 2013.

Naver led broad gains in internet shares that helped the Kospi regain ground after an opening loss. The Kospi ended 0.7% higher at 2972.19, rising for a third consecutive session.

Mobile internet platform company Kakao closed 6.6% higher. Cloud-computing and IT services company NHN finished 10% higher.

The rally in internet and IT stocks came as the new Seoul government reaffirmed its artificial-intelligence push, with the Science Ministry drafting a five-year investment plan to turn South Korea into an innovative AI powerhouse.

Naver, which has developed a homegrown generative AI model based on its own large language model, HyperCLOVA X, is widely seen as better positioned than its local peers to benefit from the country's continuing AI drive.

Earlier this week, Naver's AI Innovative Center chief, Ha Jeong-woo, was appointed as a senior secretary to President Lee Jae-myung, who during his election campaign pledged to invest about 100 trillion won, equivalent to$72.38 billion, in the AI industry.

Naver Chief Executive Choi Soo-yeon in an earnings call last month remained upbeat about the company's AI model, which she said would focus on upgrading its e-commerce and search services to enhance users' experience. She also expected to see Naver's AI tool help generate profit from the second quarter.

Seoul-based analyst Kim Hye-young of Daol Investment & Securities said Wednesday that she expects Naver's revenue and operating profit to rise 10% and 11%, respectively, from a year earlier in the second quarter. That would be in line with the market consensus, Kim said, noting that the company is strengthening its search services that utilize AI tools.

Daiwa Capital analysts Thomas Y. Kwon and Joon Lee said in a recent note that Naver could perform strongly from the second half on solid earnings growth aided by new online-shopping revenues and advertising-product sales. They were also positive about Naver's plans to boost AI coverage through its "AI Briefing" service toward the fourth quarter.


Write to Kwanwoo Jun at kwanwoo.jun@wsj.com


(END) Dow Jones Newswires

06-18-25 0604ET