Naver stocks surged 8.43% to 225,000 won on May 27, driven by NVIDIA's strategic investment and expectations for a global AI infrastructure project. NVIDIA is investing $1 billion (approximately 1.48 trillion won) to acquire a 4.5% stake in Naver through a third-party allotment. The investment is part of a $10 billion (approximately 14.6 trillion won) AI Factory project involving Naver, NVIDIA, and global alternative investment firm Brookfield. Individual investors net purchased 71.5 billion won worth of Naver shares on May 27, making it the fourth most-bought stock after Samsung Electronics, SK Hynix, and Samsung Electro-Mechanics. The rally also reflects anticipation of regulatory relief for Naver's ongoing acquisition of Dunamu, following a regulatory committee's review of Special Financial Information Act amendments on May 24. Brookfield stated that South Korea possesses sufficient capacity to become a global AI leader and emphasized the importance of national-level AI infrastructure development.
NVIDIA Invests $1 Billion in Naver for AI Factory Project
Naver disclosed on May 27 that it is conducting a third-party allotment capital increase worth $1 billion (approximately 1.48 trillion won). The investor is NVIDIA, and upon completion of the new share issuance, NVIDIA will secure a 4.5% stake in Naver. This investment is part of a total $10 billion (approximately 14.6 trillion won) AI Factory construction project pursued by Naver, NVIDIA, and Brookfield. NVIDIA is responsible for GPU technology and strategic investment, while Brookfield will support the construction of approximately $9 billion worth of computing infrastructure and data centers through project financing (PF). Naver and NVIDIA signed the AI Factory investment agreement on May 24 at NVIDIA headquarters in Santa Clara, California. Brookfield is in discussions for formal contract signing to participate in the project.
Brookfield Confirms Korea as Core AI Industry Hub
Brookfield released a statement on May 27 evaluating South Korea as a core hub for the AI industry and reaffirming its commitment to collaboration. The company stated that South Korea is a nation with sufficient capacity to grow into a global AI leader, and emphasized that national-level AI infrastructure construction is paramount for this goal. Brookfield added that it possesses expertise across the entire AI infrastructure spectrum, including energy, data centers, computing infrastructure, and AI operational capabilities. The firm stressed its intention to expand cooperation with Naver and NVIDIA to contribute to the construction of South Korea's AI ecosystem.
Naver Announces Treasury Share Cancellation and Regulatory Review Progress
Naver decided to cancel 4.9 million treasury shares worth approximately 1 trillion won on next month 3rd, presenting a shareholder return policy alongside its AI business initiatives. Expectations that regulatory burdens surrounding the Dunamu acquisition process could be eased also contributed to the stock price rise. According to the IT industry, the Presidential Regulatory Rationalization Committee held a Growth Subcommittee meeting on May 24 and reviewed the Special Financial Information Act enforcement ordinance amendment scheduled for implementation in August. The committee recommended establishing exception provisions in the eligibility review criteria for major shareholders of virtual asset operators. The existing amendment draft was criticized for being excessively strict, as it effectively blocked major shareholder change notifications for entities with economic law violation histories. Naver is currently proceeding to incorporate Dunamu as a wholly-owned subsidiary through Naver Financial. However, concerns have been raised that the company's antitrust law violation conviction and fine from last year could affect the major shareholder eligibility review. The market expects that if this institutional improvement discussion materializes, related uncertainties could be partially resolved.
FAQ
What did NVIDIA invest in Naver on May 27?
NVIDIA is investing $1 billion (approximately 1.48 trillion won) in Naver through a third-party allotment to acquire a 4.5% stake. The investment is part of a $10 billion AI Factory project involving Naver, NVIDIA, and Brookfield.
Why did Naver stocks surge 8.43% on May 27?
Naver stocks rose due to NVIDIA's strategic investment announcement, expectations for the global AI Factory infrastructure project, and anticipated regulatory relief for Naver's Dunamu acquisition following a regulatory committee review on May 24.
What did Brookfield state about South Korea's AI industry role?
Brookfield stated on May 27 that South Korea possesses sufficient capacity to become a global AI leader and emphasized that national-level AI infrastructure construction is critical. The firm confirmed its commitment to expanding cooperation with Naver and NVIDIA to contribute to South Korea's AI ecosystem development.
