SEOUL – Kakao is carving out a distinct path in the global artificial intelligence race, prioritizing "efficiency and orchestration" over the raw infrastructure-heavy spending seen by its rivals. According to recent regulatory filings released on March 19, 2026, the South Korean mobile giant spent a record 1.29 trillion KRW on Research and Development (R&D) last year, maintaining a consistent investment ratio of 16% of its total revenue.

While the total investment amount reached an all-time high, the 16.0% ratio remains steady compared to previous years (16.2% in 2023 and 16.1% in 2024). This reflects a strategic decision to manage costs effectively while scaling up. Kakao’s approach, termed "Orchestration," involves a hybrid model that integrates its proprietary lightweight AI, "Kanana Nano," with top-tier global models from OpenAI and Google.

The synergy with global partners is already yielding results. "Kanana in KakaoTalk," an on-device AI service, recently expanded its compatibility to Android devices through a partnership with Google. Furthermore, Kakao plans to launch "ChatGPT for Kakao" in collaboration with OpenAI and deploy AI agents for major Korean retailers like Musinsa and OliveYoung.

In contrast, Naver is taking a much more aggressive stance. Naver’s R&D spending surged to 2.22 trillion KRW last year, an 11.4% increase. More notably, Naver’s capital expenditure (CAPEX) for facilities skyrocketed by 230%, reaching 1.31 trillion KRW, with the vast majority directed toward securing GPUs and server equipment. Unlike Kakao, Naver focuses on a "Self-Linkage" strategy, deeply integrating its AI into its own ecosystem of search, shopping, and community services.

Industry experts note that these strategies reflect the differing DNA of the two companies. "Naver is driven by entrepreneurship and core technological sovereignty," says Professor Jeon Seong-min of Gachon University. "Kakao, meanwhile, focuses on business experimentation and leveraging the unparalleled mobile accessibility of KakaoTalk."

As the AI era matures, the market is watching closely to see which philosophy—Kakao’s lean, collaborative orchestration or Naver’s vertically integrated powerhouse—will dominate the South Korean digital landscape.