Naver Z

About Naver Z

Naver Z Corporation operates as a subsidiary of the South Korean technology conglomerate, Naver Corporation, and is the driving force behind the metaverse platform ZEPETO. Established in May 2020, Naver Z was spun off from SNOW, another Naver subsidiary, to specifically focus on the burgeoning virtual world sector. The company is headquartered in Seongnam, South Korea, with an expanding presence in the United States, and Japan.

The company's flagship product, ZEPETO, launched in 2018 and has grown into a prominent avatar-based social platform, particularly popular among females aged 13 to 21. The platform allows users to create and customize 3D avatars, design virtual fashion items and interactive worlds, and socialize with others. This user-generated content (UGC) ecosystem is a key aspect of the platform, with millions of items created by users and sold within the app. Naver Z's primary revenue streams include in-app purchases of virtual currency ('Zems' and 'Coins') used for avatar customization, premium subscriptions, and advertising. The business model is increasingly shifting to focus on experiences that can be purchased within individual virtual worlds, similar to Roblox.

Naver Z has successfully attracted significant investment, reflecting strong market confidence. In late 2021, the company secured approximately $188 million in a Series B funding round led by SoftBank's Vision Fund 2, with participation from entertainment giants HYBE, YG Entertainment, and JYP Entertainment, reaching a valuation of over $1 billion. These strategic partnerships are pivotal, as they integrate major K-pop and fashion brands into the ZEPETO metaverse, offering exclusive content and virtual experiences. Brands like Gucci, Dior, and Ralph Lauren have also established a presence on the platform, selling virtual versions of their products and hosting events.

The company is led by co-CEOs Dae-wook Kim and Jay Lee (for the US division). Jay Lee's background spans over a decade in the tech industry, including a tenure at Intel, and seven years in the music industry as a recording artist and producer. This blend of experience in technology and creative industries informs his vision for ZEPETO as a platform that empowers users to transition from content consumers to creators and entrepreneurs. Naver Z continues to expand its global footprint, with a strong focus on growing its user base in the US, Western Europe, and the Middle East, in addition to its established presence in the Asia-Pacific region.