Naver-Lotte AI Partnership Targets Retail Operations

Seoul, South Korea - Naver Corp. and Lotte Distribution Group, a retailer, announced a collaboration to develop artificial intelligence software for retail operations.

The companies said their executives met Sept. 5 at Naver's office in Bundang to discuss the partnership. 

Naver Chief Executive Soo-yeon Choi and Lotte Distribution Group Vice Chairman Sang-hyun Kim attended the meeting.

The companies plan to create AI agents for four areas: shopping, merchandising, operations, and management support.

The software will be tested at Lotte retail stores, including Lotte Mart and Hi-Mart, as well as at logistics centers.

Naver will provide its cloud computing AI marketing tool called "NCLUE" and digital advertising technology for use with Lotte's in-store displays, the companies said.

A joint promotion will offer 10 percent point rewards for customers using Naver Pay at Lotte Mart and Super stores through December.

The companies also announced that they will integrate products from Lotte's 7-Eleven stores with Naver's delivery service.

The partnership may include allowing Naver online sellers to operate temporary stores at Lotte locations.

Choi said the companies expect the partnership to result in advancements in AI shopping by combining Naver's technology with Lotte's retail infrastructure and both companies' online platforms.

Kim said the partnership is intended to combine Lotte's retail network with Naver's digital capabilities.

Naver operates South Korea's largest search engine and provides cloud services. 

Lotte Distribution Group runs department stores, supermarkets, and convenience stores.