September 13 2023  |  Retailers

Shilla Duty Free partners with Naver to accelerate digital transformation and AI-tech

By Hibah Noor

Shilla Duty Free formalized a strategic business partnership at Naver's headquarters in Bundang-gu, Seongnam-si, Gyeonggi-do. [Pictured L-R] Lee Soo-hyun, Naver's Executive Leader; Han Jae-young, Head of Naver's Business Development Center; Kim Tae-ho, Division Head of Shilla Hotel's TR Division; and Kim Bo-yeon, E-commerce Team Leader at Shilla Duty Free

Shilla Duty Free is partnering with Naver, Korea's top portal site, to interlink services and accelerate its digital transition.

On the 8th, through a business agreement held at Naver's 1784 building in Bundang-gu, Seongnam-si, Gyeonggi-do, Shilla Duty Free announced its strategic business partnership aiming for a digital transition of the hotel and duty free business based on AI and cloud technology, expansion of online and offline customer benefits through membership collaboration and enhancement of convenience for hotel and duty free service users.

With an impressive market share in Korea's internet landscape, Naver champions the nation's top portal service and develops shopping, advertising, and digital payments business. In addition, Naver is expanding its footprint in offering diverse IT infrastructure including AI and cloud service. Naver registers a daily unique visitor count of 35 million, a testament to its influence.

Under this agreement, Shilla Duty Free is set to fortify the integrative benefits for both Shilla Online Duty Free and Naver Plus Membership members. Effective from the 18th, Naver Plus members will secure an 8% return of the purchase amount as Naver Pay points on Shilla Online Duty Free purchases.

Additionally, to enhance payment convenience, Shilla Duty Free will integrate Naver Pay across its hotel and duty free touchpoints, both online and offline.

The collaboration also heralds the debut of Shilla Duty Free’s premium products on Naver Shopping. Recognized as a vanguard in Korea’s e-commerce domain, this move ensures travelers seamlessly access and purchase Shilla Duty Free offerings within the Naver Shopping ecosystem.

Leveraging Naver's generative AI technology further accentuates Shilla Duty Free's digital transformation trajectory.

Last August, Naver made waves at the ‘DAN 23’ conference, unveiling its trailblazing generative AI, 'Hyper CLOVA X,' alongside the conversational AI service 'CLOVA X' and the innovative AI search tool 'CUE.'

Shilla Duty Free plans to innovate its hotel and duty free service business by utilizing Naver's generative AI and cloud technology. This technology agreement aims to facilitate convenience for Shilla Duty Free customers and provide personalized services by efficiently using customer data.

Kim Tae-ho, Head of Shilla Hotel's Travel Retail Division, said, "Our collaboration with Naver, especially utilizing its AI prowess, will broaden our business horizons. We will continue our relentless pursuit of digital transformation, anchored in customer convenience and benefits."

Echoing this sentiment, Han Jae-young, Head of Naver's Business Development Center, added, “This strategic alignment with Hotel Shilla amplifies the membership experience by fusing distinctive benefits across diverse verticals like membership, travel, payment, and shopping. Beyond user experience, this partnership leverages Naver's distinctive technology to elevate the digital competitiveness of our partners, fostering an unparalleled business synergy for both entities."

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