[Special Stock] Eastsoft Urgently Needs Revaluation with 30 Million Customer Base and Core Technology for Virtual Human Production

[Asia Economy Reporter Hyungsoo Park] Eastsoft is showing strong performance. It appears that securities firms' analysis, emphasizing the urgent need for revaluation as the company transforms from a national software company to an artificial intelligence (AI) service company, has influenced the stock price.

As of 10:42 AM on the 23rd, Eastsoft is trading at 16,100 KRW, up 5.92% from the previous day.

Researcher Kyunggeun Kang of NH Investment & Securities introduced, "Eastsoft provides the national representative utility software ‘ALTools’ and has over 30 million customers including corporations, government, and individuals."

He added, "The listed subsidiary Zoom Internet’s equity value amounts to 94.7 billion KRW, and net cash is 19.8 billion KRW. Currently, the market capitalization is only 169.7 billion KRW."

He emphasized, "A fair valuation of the software and gaming sectors as well as the AI commerce company DeepEye, and a revaluation as an AI service company are necessary."

He pointed out Eastsoft as a company to watch if looking for AI-related investment destinations with a stable business structure and financial soundness.

He introduced, "Meaningful results are emerging in the AI service field, which is being promoted as a new business. In June 2017, the company established AI Plus Lab, a corporate research institute in the AI field." He also emphasized, "Research and development are being conducted in virtual human, commerce, techfin, and security fields, and they secured AI projects worth 10 billion KRW under the Digital New Deal."

Researcher Kang explained, "Based on their capabilities, tangible results are appearing in the AI service field. First, they have secured core technology for producing virtual humans based on AI voice and video learning technology."

Eastsoft, which has secured technology to produce videos that speak naturally like humans with text input alone, demonstrated success in April by broadcasting an AI anchor on YTN news. Currently, they are developing an AI instructor in cooperation with Hunet. They plan to expand this technology to various fields beyond education.

The subsidiary Jibeo launched ‘ROUNZ,’ an eyewear shopping platform combining AI and augmented reality (AR) technology. ROUNZ is the first in Korea to develop an eyewear virtual fitting service through the combination of deep learning-based facial recognition technology and 3D rendering technology. Through this differentiated technology, customers can try on and purchase over 4,000 eyewear items from about 100 brands directly via their smartphones without visiting an optical store. Researcher Kang analyzed, "The technology was recognized and selected as Apple’s representative AR service. Last year, related sales recorded 5.36 billion KRW."