Naver shares surged nearly 18 percent on Wednesday, hitting a 52-week high, as investors responded positively to South Korea’s new AI-focused government policies and favorable analysis from JP Morgan.
The tech firm closed at 243,500 won ($177) on the Kospi, up 17.92 percent from the previous day. It also reached an intraday high of 244,500 won.
JP Morgan Optimistic on AI Gains
JP Morgan raised its target price for Naver from 250,000 won to 270,000 won while maintaining an overweight rating. The U.S.-based investment bank pointed to the new administration’s ambitious AI agenda as a major growth driver for Naver.
President Lee Jae Myung recently unveiled a plan to invest 100 trillion won into AI infrastructure, with both private and public support. This includes major investments in GPUs and data centers.
Naver is seen as a key player in this strategy. JP Morgan called the company’s AI capabilities “superior” and highlighted its strong market position as a reason it would benefit from the government’s sovereign AI push.
Key Appointment Supports Sentiment
Boosting investor confidence further was the appointment of Ha Jung-woo, head of Naver’s Future AI Center, as the presidential secretary for AI policy. The newly created position signals the government’s commitment to AI development.
JP Morgan noted that Ha’s appointment shows the government’s serious focus on computing infrastructure and data centers, both areas where Naver has strong capabilities.
Government Outlines Infrastructure Spending
The Ministry of Science and ICT also presented a five-year plan to invest over 16 trillion won in AI infrastructure. This includes buying 50,000 GPUs, building AI data centers, connecting public and private AI training data, and launching new innovation hubs.
These policy moves are part of President Lee’s broader pledge to boost Korea’s competitiveness in the global AI race.
Market Responds Across Tech Sector
The broader IT sector saw gains on Wednesday as AI optimism spread across the market.
Kakao rose 6.56 percent. Douzone Bizon was up 12.13 percent. NHN climbed 6.56 percent.
Game companies also benefited. NCsoft jumped 8.73 percent, Kakao Games added 5.73 percent and Netmarble increased 5.61 percent.
Meanwhile, Naver addressed concerns over a possible data breach. It clarified that the Smart Store seller data recently seen on the dark web was public information and not stolen.
