NAVER (XKRX:035420, Financial), an internet company based in South Korea, was the largest contributor during the fiscal year. Over the past year, the company has generated strong operating results while management has completed several corporate actions that have significantly added value. Operationally, NAVER has produced strong revenue growth in all of its key businesses, including search, e-commerce, fintech and content services while also maintaining healthy margins. In addition, the company recently received regulatory approval to merge its Japanese subsidiary, Line Corp, with Yahoo Japan (Z Holdings). This combination will create one of the largest internet companies in Japan and we are optimistic about its long-term prospects. NAVER also spun out its financial technology business, NAVER Financial, and received a sizable investment from an outside party. We expect this business to generate strong revenue growth in the coming years and to be among the leaders in South Korea's fintech industry. With healthy growth, improving profitability and strong market positions across most of its businesses, NAVER remains an attractive holding, in our view.
From David Herro (Trades, Portfolio)'s Oakmark International Fund third-quarter 2020 commentary.
