[Click eStock] "Polaris Office Collaborates with Naver HyperCLOVA X... Launching Own AI Office in August"

Independent research firm ValueFinder analyzed on the 2nd that Polaris Office is expected to improve profitability due to the price increase for applying the upcoming 'Polaris Office AI' scheduled for release this month.

Polaris Office's main product is 'Polaris Office,' a document-based software similar to Microsoft Office. It allows editing of various documents (Doc, PPT, Xls, PDF, etc.) within a single program and features a lightweight engine that facilitates easy integration with existing work systems. As of the end of Q1 this year, it has secured 124 million subscribers across 243 countries, with an estimated daily new subscriber count of about 20,000 to 50,000.

Researcher Lee Choong-heon of ValueFinder stated, "Polaris Office is currently expanding sales by providing SDK (software development kit) forms through partnerships with over 70 global companies," adding, "The company plans to launch 'Polaris Office AI,' which applies global generative AI technologies such as OpenAI's ChatGPT, Naver's HyperCLOVA X, and Stability AI's Stable Diffusion, in August this year."

He continued, "Following the integration of its services into Naver Whale browser in 2021, the company will release a Korean-style AI office based on Naver's large-scale AI 'HyperCLOVA X,'" and noted, "It is expected to apply a higher price compared to the existing cloud monthly subscription plan, which is anticipated to improve profitability."

Additionally, he said, "A partnership with the U.S. software distribution specialist 'SoftwareKeep' raises expectations for entry into the North American market, the world's largest software market," and explained, "The company plans to strategically supply products targeting startups and small to medium-sized enterprises in the U.S. to replace expensive office software currently on the market, and it is understood that supply expansion will extend from the private to the public sector, with plans to expand markets starting from the U.S. to Canada, the U.K., and Australia."

Enhancement of corporate value through affiliates is also expected. Polaris Office recorded stable performance with its affiliates Polaris Sewon and Polaris Uno in Q1. In May, the company decided on a 5 billion KRW investment to strengthen Polaris Sewon's competitiveness and maximize corporate value, and in June, converted 6 billion KRW of Polaris Sewon's convertible bonds (CB) into shares, increasing its stake to 24.13%.

Researcher Lee forecasted, "Through establishing a stable governance structure, the company is expected to strengthen responsible management and expand synergy among affiliates," adding, "In particular, with increased orders for air conditioning parts for electric vehicles, growth of affiliate Polaris Sewon is expected along with enhancement of the company's corporate value."