Naver’s Japan-focused B2B unit swings to profit

Naver Corp.’s business-to-business (B2B) services provider Works Mobile Co. posted its first-ever profit in 2022, driven by a surge in Japanese sales since the COVID-19 outbreak.

Works Mobile provides schedule-sharing software for email, address and schedule management and for voice calls. It also performs surveys for client companies.

It is the first time for Works Mobile to report an annual profit in seven years since it made inroads into an overseas market, according to industry sources on Wednesday.

After it spun off from Naver, the overseas arm of South Korea’s largest online portal launched software-as-a-service (SaaS) products customized for Japanese companies.

The B2B unit, called Line Works in Japan, has taken advantage of the popularity of its messenger service affiliate Line. It made the Line communication services available for Works Mobile users.

As an increasing number of companies adopted remote work in Japan, the Naver unit saw a surge in demand for its schedule-sharing platform. Japan has been slow in digital transformation, compared to other countries.

Works Mobile has seen its customer numbers leap to 400,000 in the first half of 2022, from some 100,000 in the first half of 2020.

MOMENTUM TO EXPAND B2B SERVICES

Now that Naver’s global B2B business exceeded its breakeven point, the former in-house venture is preparing to expand its global footprint.

To do so, it will introduce the global versions of other SaaS platforms, including the artificial intelligence-based CLOVA Interface Connect (CIC), the web browser Whale and the Papago translation app. 

It is now at the testing stage of Naver Whale’s global versions, which will be customized for each country, a Naver official said.

Naver will package its B2B services into cloud-based software to better serve financial, retail and manufacturing companies.

As part of such efforts, Naver Cloud will take charge of B2B services such as CLOVA, Whale, Papago and Works Mobile from this year. That will involve the transfer of about 2,000 employees within Naver.

Write to Han-Gyeol Seon at Always @hankyung.com
Yeonhee Kim edited this article