Recently, Naver signed an unprecedented contract with a venture firm in line with its plan to support the local venture startups. However, Naver is receiving criticism from the venture industry since the representative of the firm had previously worked for Naver.

On August 27, Naver announced that it signed a memorandum of understanding (MOU) with venture firm Woowa Bros for mutual development after receiving criticism for blocking smaller venture firms from the market. However, Naver is receiving harsh criticism for 'nepotism', since the representative of the firm is a former NHN (now Naver) employee.

Naver signed a MOU with Woowa Bros, the creators of food delivery application "Baedalui Minjok" (Delivery People) for mutual cooperation in the field of food delivery business.

Kim Bong-Jin, CEO of Woowa Bros, is former NHN senior designer. Naver announced its plan to strengthen cooperation with its former employee Kim in the field of online contents including Naver map location information and even develop a new joint business model.

The venture industries raised their voices in criticism of Naver's plans to support small IT firms and ventures as it turned out to be supporting its former worker. Naver has been criticized for killing promising start-up firms by copying their business ideas.

A representative of a venture firm said, "Previously, Naver caused controversy after copying services created by smaller ventures. Naver has been expanding into every market that makes money, but it presented a special proposal for mutual growth exceptionally to its former employee, which can be seen as nepotism."

The rep said, "There won't be a venture that fails if Naver shares its huge map location information and other contents. It's more clear now that Naver came up with plans to demonstrate benevolence."

Naver has been receiving criticism of stealing the business models of startups and closing down their businesses. In 2010, Naver launched 'Wingspoon' service in response to 'Menupan.com', which provides information of famous restaurants nationwide. In April 2013, Naver launched 'Wannabe' app service, which is similar to fashion app StyleShare made by college student Yoon Ja-Young.