TLDR: South Korean tech giant Naver and Lotte’s institutional sector have announced a comprehensive partnership to drive AI transformation across their online and offline distribution businesses. The collaboration aims to integrate Naver’s advanced AI and cloud technologies into Lotte’s extensive distribution infrastructure, creating innovative AI-powered shopping experiences and enhancing operational efficiencies.
Naver, a leading South Korean internet company, and Lotte’s institutional sector have officially unveiled a strategic collaboration focused on accelerating AI transformation (AX) within their online and offline distribution networks. The partnership, announced on September 7, 2025, follows a meeting between Naver CEO Choi Su-yeon and Kim Sang-hyun, vice chairman and overall representative of Lotte’s institutional sector, held on September 5th at Naver 1784.
The core objective of this alliance is to integrate Naver’s cutting-edge technologies, including artificial intelligence and cloud computing, into Lotte’s vast distribution infrastructure. This integration is expected to revolutionize the shopping experience by introducing new AI-driven functionalities and streamlining operational processes.
The collaboration will encompass several key areas:
1. Development of Distribution-Specialized AI Agents: The companies plan to jointly develop AI agents tailored for four critical institutional sectors: shopping, merchandise (MD), operations, and management support. These specialized AI tools will be progressively implemented across Lotte’s offline distribution operations, including retail stores like Lotte Mart and Hi Mart, as well as logistics centers.
2. Enhanced AI Digital Marketing: The partnership will significantly bolster digital marketing efforts. Naver Cloud’s AI marketing solution, ‘NCLUE,’ will be combined with Naver’s digital advertising platforms. This integrated approach will be applied to various channels, including Lotte’s offline displays, to improve AI-based customer analysis and refine advertising targeting precision.
3. Integrated Commerce and Payment Solutions: To foster a seamless customer journey, Naver and Lotte will link their commerce and payment systems. A joint promotion is set to reward customers with 10% points when using Naver Pay money or points for purchases at Lotte Mart and supermarkets, running until the end of the year. Furthermore, the collaboration will extend to integrating products from Lotte’s institutional sector, such as 7-Eleven, with Naver Plus Store’s ‘Now Delivery’ service, offering expedited delivery options.
4. Expansion of Offline Sales Channels: The partnership also explores leveraging Lotte’s institutional sector stores, potentially through pop-up store formats, to expand the offline sales channels available to sellers on Naver Smart Store.
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This comprehensive partnership underscores both companies’ commitment to leveraging advanced AI and cloud technologies to innovate the retail and distribution landscape, aiming to deliver a more intelligent and efficient experience for both businesses and consumers.
