Moody's credit rating is A3, and the market value of South Korean e-commerce giant Naver exceeds 4 billion won

Since Naver, South Korea's largest search engine and e-commerce giant, exchanged shares with E-Mart and S SG.com for a total of 250 billion won, Naver's stock price has continued to rise, and its market value once exceeded 4 billion won.

Recently, according to the Korea Herald, global credit rating agencies S& P Global Ratings and Moody's have predicted stable growth for South Korean Internet giant Naver and rated its company as A- and A3 respectively .

Naver's fast-growing e-commerce and fintech businesses will become important growth engines for the company.

Yoo Wan-hee , a Moody's vice president and senior credit officer, said: "Naver's A3 rating reflects its dominant position in South Korea's online services industry as a leading search and e-commerce platform operator . This rating is inseparable from its diversified business , solid industry growth prospects, and strong balance sheet . "

Thanks to the strong growth in e-commerce, which has recently gained momentum in South Korea due to the coronavirus pandemic , Naver is likely to maintain its strong operating performance and is expected to achieve strong revenue growth of 16 % -21% over the next two years.

Last year, the annual e-commerce transaction volume on Naver was estimated at 27 trillion won , accounting for 16.6% of the Korean online shopping market , ranking first in the Korean e-commerce market share. According to experts’ predictions, under Naver’s “cooperation strategy”, Naver’s e-commerce market share may increase to 30% by 2025 .

In fact, Naver has done more than just this in terms of corporate expansion! The electronic disclosure system of the Financial Supervisory Service of Korea revealed on the 21st that Naver 's R&D expenses last year were as high as 1.3321 trillion won ( RMB 7.65 billion ) .

It should be noted that Naver 's annual sales last year were only 5.3041 trillion won, which is equivalent to investing 25% of its sales in research and development, which is the highest ratio among Korean companies. Even Samsung Electronics, which has the highest R&D investment in Korea , only spent 8.9% of its sales on R&D last year .

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