[IPO] Conan Technology Lists on KOSDAQ... "Entering Aerospace and Drones with Video AI"

Im Wantak, Executive Director of Conan Technology, is introducing the company at an online press conference on the 22nd.

[Asia Economy Reporter Jang Hyowon] “We plan to enter the aerospace, unmanned aerial vehicle, and drone industries through ‘Video AI (AI for Video)’ developed based on our proprietary artificial intelligence (AI) technology.”

On the 22nd, Im Wantak, Executive Director of Konan Technology, stated at an online press conference for the KOSDAQ listing, “Our company has developed all AI technologies in-house, including deep learning frameworks, giving us unlimited scalability in new markets.”

Founded in 1999, Konan Technology began with natural language processing and has built expertise in unstructured big data analysis, a fundamental AI technology. The company has secured proprietary AI technology that enables understanding not only human language and meanings in videos but also the underlying intent.

Based on this technological capability, the main businesses are broadly divided into ‘Language AI (AI for Text)’ that processes natural language and ‘AI for Video’ that analyzes videos using AI technology. These are categorized into AI-enhanced search and analysis, chatbots, and AI-based video and voice processing products, with supply models ranging from on-premise to subscription-based.

Executive Director Im said, “Konan Search in the AI for Text business achieved a 51% market share in public institutions last year by delivering higher search accuracy and faster indexing speed compared to competitors, proving the product’s excellence.”

Accordingly, Konan Technology has maintained profitable management. Last year, sales reached KRW 17.849 billion, with an operating profit of KRW 2.24 billion. The operating profit margin was 12.6%, and the net profit margin was 10.6% as of last year. The average annual growth rate of operating profit over the past four years was about 77%. The proportion of sales from long-term customers exceeding five years was 54.9%, securing higher customer loyalty compared to other companies.

Konan Technology’s core competitiveness lies in business scalability through technological prowess. Over 57.8% of its R&D personnel hold master’s or doctoral degrees, and the R&D investment ratio relative to sales over the past three years reached 40.7%, demonstrating high technological capability. Additionally, the proprietary programming language ‘K-Language’ enables rapid commercialization with fewer personnel in industries applying AI, providing an advantage in capturing new business markets.

After listing, the AI for Video business plans to expand into future growth industries such as defense and aerospace. Following the successful completion of the ‘Military ImageNet’ project, an intelligent military platform for the Army Training Command last year, the company plans to enter projects related to the Air Force and Navy.

Moreover, with government-led expectations for the development of the space industry, Konan Technology is collaborating with Korea Aerospace Industries (KAI) to develop future aircraft, PHM (Prognostics and Health Management) systems, as well as unmanned aerial vehicles, drones, and satellites, anticipating growth in high-profit industries.

The AI for Text business is also expected to see increased sales and profits. The company plans to secure stable ongoing revenue by investing in R&D and expanding sales channels for subscription-based products such as Konan BI and PulseK. It aims to strengthen Konan Search’s market position to drive price increases and maintenance contract growth, and enhance Konan Chatbot’s performance to gain a competitive edge in price and quality.

CEO Kim Youngseom stated, “Konan Technology has achieved outstanding management performance and market recognition for excellent technology based on proprietary AI technology,” adding, “After listing on KOSDAQ, we will focus on R&D investment to provide users with innovative AI experiences and become a leader in the future AI industry.”

Meanwhile, the total number of shares offered is 1.2 million, with an expected offering price of KRW 21,000 to 25,000 per share, and the offering size is KRW 25.2 billion to 30 billion. Demand forecasting is underway until today, with subscription scheduled for the 27th to 28th, and the company plans to list on KOSDAQ within July. Korea Investment & Securities is the lead underwriter.