Naver subsidiary splurges on metaverse, resell platform acquisitions
The tech giant hopes to draw users aged 40 and younger through the deals
By Mar 29, 2022 (Gmt+09:00)
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![Kream is an online trading platform for limited edition sneakers](https://www.kedglobal.com/data/ked/image/2022/03/29/ked202203290012.640x.0.jpg)
Snow Corp., a subsidiary of South Korea’s tech behemoth Naver Corp., has either already invested, or is slated to invest, in 11 companies so far this year.
Kream, which operates online platform for trading limited-edition sneakers dubbed Collectiv, used to be part of Snow but became an independent corporation on Jan. 1 of last year. With the latest investment, Kream will be able to expand its reach beyond the sneakers market to also encompass luxury apparel business.
The company is expected to have a 70% stake in Fab, operator of online platform Chicement for trading used luxury goods by investing 7 billion won. Last month, it invested 3.5 billion won into Singapore-based Keystar International, which manages an online exchange for pre-owned electronics called Reebelo.
The Naver subsidiary’s blueprint is to invest in platforms that target specific users such as those interested in used goods, luxury or otherwise.
![Despite being Asia's largest metaverse platform, Zepeto trails far behind global leader Roblox.](https://www.kedglobal.com/data/ked/image/2022/03/29/ked202203290016.700x.0.jpg)
VIRTUAL WORLD
In January, the metaverse arm of Naver purchased a 33.33% stake in Pinocchio, which it jointly developed with mobile game developer LunoSoft, for 4 billion won.
Around the same time, the Zepeto operator also injected a billion won into Persona Space. The company creates content for the metaverse, most notably avatars of celebrities and virtual humans.
Recently, it invested somewhere between 200 million and 1.8 billion won in each of these companies: an AI solutions provider; content creator Metaspace Company; and music content startup SSONG Company.
Naver Z acquired a 5.29% stake in Singapore-based blockchain developer Haderech for 1 billion won. The Naver group subsidiary invested in another Singapore-based software provider Good Gang Labs Pte. and US-based mobile game developer Brave Turtles, Inc.
Media reports say it recently invested in KlayCity. The company operates Klaycity District, a virtual world powered by Kakao Corp.’s global public blockchain project known as Klaytn.
![Samsung Electronics showcased a new line of mobile phones with foldable screens on Zepeto in February](https://www.kedglobal.com/data/ked/image/2022/03/29/ked202203290013.700x.0.jpg)
Snow’s shopping spree is thanks to Naver’s financial backing.
The subsidiary, which develops its namesake photo and video mobile app, saw 107.5 billion won worth of operating losses in 2020.
While there are concerns about Snow investing heavily while in the red, Naver as a whole is determined to invest to attract younger users.
The internet giant has been criticized for not appealing to users aged 40 and younger. With the latest string of investments, Naver hopes to attract more users from the MZ Generation, as millenials and Gen Zers are called in Korea.
Snow has developed a number of services to cater to these age groups.
In addition to the namesake photo and video filter and messenger app, it also launched English learning app Cake Corp. and an emoticon-generating app called Sticker.ly.
The company also used to have a live commerce platform Jam Live, which closed down on Nov. 10 of last year.
In addition to mergers and acquisitions, Naver Z is also setting up local offices abroad. Last August, it established a US corporation and set up a Hong Kong entity in January of this year.
Write to Joo Wan Kim at kjwan@hankyung.com
Jee Abbey Lee edited this article.
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