[AI Revolution](77) ‘2-Kang System’ Part-Time Job Brokerage Market, Nider Changing the Landscape with AI

Matching Job Seekers and Employers Through AI Technology
Transaction Volume Increases More Than 8 Times Compared to Last Year
Technology for Matching via Voice Recognition Also Under Development

The domestic online short-term job (part-time) brokerage market is dominated by Albamon and Albacheonguk. As of 2020, their market shares were 64% and 36%, respectively. These two companies have maintained a solid market dominance since the early to mid-2000s.

Shin Hyun-sik, CEO of Nieder [Photo by Nieder]

A company has recently challenged this market, once considered a 'red ocean,' by leveraging artificial intelligence (AI) technology. This company is 'Needer,' which operates a mobile app called 'Geupgu.' Its catchphrase is 'Matching short-term employers and job seekers in just 3 seconds.' Geupgu has been quietly causing a stir in the market. The total wages paid through Geupgu this year are expected to exceed 40 billion KRW, an increase of more than eight times compared to last year. The number of partner companies using Geupgu has also more than doubled from last year. Customers of Geupgu include CU convenience stores, GS25, Coupang Logistics, Subway, Baemin B Mart, Everland, and Yanolja. Needer has raised a cumulative investment of 10.9 billion KRW.

What sets Geupgu apart from existing platforms is that it does not use 'job boards' at all. A job board is a bulletin board where employers post job advertisements and job seekers apply. Instead, Geupgu matches employers and job seekers through an AI technology called 'AI Pick.' Employers do not need to post separate advertisements; they simply enter essential conditions such as time, location, and hourly wage, and receive recommendations of suitable applicants. Job seekers input their past work experience and available working hours. They can browse as many automatically recommended jobs and workplaces as they want. This AI technology is based on machine learning (computer algorithms that automatically improve through experience). The more data accumulated, the higher the accuracy.

Nider's app screen
Photo by Nider

Another distinctive feature is that, unlike other platforms that only provide brokerage services, Geupgu also offers payroll settlement services. When an employer registers a card, payment is automatically processed on the wage payment date. The wages are paid to the part-timers within one hour after payment. Additionally, the app provides attendance management functions. Recruitment, payroll, and workforce management can all be handled on a single platform. The cost to use these features is 44,000 KRW per month, charged only to employers. Job seekers do not have to pay separately.

Shin Hyun-sik and Lee Ji-hoon, co-CEOs of Needer, met by chance while using a shared office at Pukyong National University after applying for a youth startup program. Shin was a marketing expert, and Lee was a former game company developer. After exchanging advice, they decided to collaborate on a project. That project was a part-time job brokerage app. They named the company 'Needer' to mean 'becoming someone who is needed by others.' This was in 2014. After a beta service in the following year, the official service launched in 2017. They are now also developing a chatbot service that enables matching through voice commands. For example, saying 'Find me a cafe part-time job' to the chatbot would find a cafe job.

The short-term job brokerage market size, combining online and offline, is estimated at 588.2 billion KRW. Needer is also running a service that helps manpower offices, which are key players in the offline brokerage market, to hire daily workers using its platform. This is a kind of digital transformation (DX) project. CEO Shin Hyun-sik said, “Demand for short-term labor recruitment is increasing due to economic and social changes,” and added, “We will solve problems that existing labor matching platforms have not addressed through DX and AI.”