NVIDIA to Become NAVER’s Third-Largest Shareholder; $1 Billion Investment to Be Paid Next Month

[Financial News] NVIDIA will invest about $1 billion (about 1.35 trillion won) in NAVER, becoming its third-largest shareholder. With the investment payment date set for December 6 this year, the global AI factory project being jointly pursued by NAVER, NVIDIA, and global asset manager Brookfield is also expected to gain momentum.
NAVER disclosed on the 30th that the payment date for the investment from NVIDIA had been set for the 6th of next month. According to a revised filing on the paid-in capital increase through a third-party allotment, the investment payment date was changed from October 30 to the 6th of next month, while the expected listing date for the new shares was moved from the 20th to the 27th of next month.
The company has also secured the computing infrastructure worth at least $9 billion (about 12.15 trillion won), a prerequisite for the investment. NAVER said the infrastructure is a resource needed to expand its AI factory business and is separate from the funds it will raise through this paid-in capital increase.
Once the investment payment is completed, NVIDIA is expected to secure about 4.54% of NAVER’s shares and become its third-largest shareholder. As of August this year, NAVER’s largest shareholder was the National Pension Service (9.49%), followed by BlackRock (7.31%). The stake held by founder Lee Hae-jin, chairman of NAVER’s board and its current third-largest shareholder, is expected to fall from 4.03% to about 3.84% following the issuance of new shares.
NAVER’s decision to bring in NVIDIA’s investment despite accepting dilution of its founder’s stake is seen as a strategic choice to respond to global competition in AI. Lee said last November, when NAVER Financial and Dunamu announced their business combination, that “business comes first; my stake isn’t important,” regarding the reduction in his ownership stake.
NAVER plans to use this investment as an opportunity to strengthen its capital and business cooperation with NVIDIA and expand its AI factory business. In July, it signed a new share subscription agreement with NVIDIA and decided on a paid-in capital increase through a third-party allotment. The funds raised will be used to pursue new businesses related to AI factories.
The issue price is 204,500 won per share. The planned issuance of 7,241,564 shares and the expected proceeds of about 1.4809 trillion won stated in the filing are provisional figures calculated at an exchange rate of 1,480.9 won per dollar. The final number of shares to be issued and the proceeds in won will be determined using the market average exchange rate of Seoul Money Brokerage Services Ltd. on the 3rd of next month.
The new shares to be acquired by NVIDIA will be electronically registered with the Korea Securities Depository as subject to mandatory retention, and withdrawals and sales will be restricted for one year.
[email protected] Jang Min-kwon Reporter