[BizLeader] "Using IPO as a Stepping Stone to Enter the Overseas Digital Twin Market"

Interview with Kim Jin-hyun, CEO of Eight
Unique Particle Simulation-Based Digital Twin Platform
Public Offering Subscription for General Investors on July 13-14

"The global digital twin market is expected to grow at an annual rate of over 30%, becoming a massive market worth 180 trillion KRW by 2028. Eate is the first and only company in Korea to develop and commercialize particle simulation software using proprietary technology. We will use the funds raised through our initial public offering (IPO) to recruit key personnel for platform advancement."

Kim Jin-hyun, CEO of Eate, shared the company's vision in an interview with Asia Economy ahead of the KOSDAQ listing. While working at Morgan Stanley, a global investment bank (IB) in the UK, he was convinced of the potential of simulation-based digital twin industries. In 2012, Kim founded Eate, hiring and nurturing excellent research talent. Eate developed 'NFLOW,' a particle-based simulation that overcomes the limitations of traditional grid-based simulations, and has grown into a leading particle simulation-based digital twin platform company in Korea.

CEO Kim explained, "Digital twin is about replicating real-world objects exactly in a virtual world to predict and solve potential problems in reality," adding, "Simulation technology is the core competitive advantage, and companies possessing simulation technology are leading the market overseas as well."

He continued, "For the past 10 years, we have been using graphics processing units (GPUs) instead of central processing units (CPUs) because particle-based simulations require much more computational power than traditional grid methods," explaining further. He added, "We hold related patents both domestically and internationally, which is why our clients are satisfied with Eate's fast analysis speed."

Kim stated, "Our self-developed digital twin platform integrates various elemental technologies such as artificial intelligence (AI), Internet of Things (IoT), cloud computing, and 3D visualization," and explained, "Based on our advanced technology, we are establishing national data standards for digital twins."

Since 2022, Eate has participated as the lead organization in a five-year research and development (R&D) project to establish unified twin standards. The company is also involved in building digital twins for national pilot city projects in Sejong and Busan smart cities. In 2022, the Deputy Minister of Housing from Saudi Arabia personally visited Eate to discuss collaboration on smart city projects.

The company expects to raise over 16 billion KRW through the IPO. The funds will be used to enhance technology and the platform. CEO Kim said, "We plan to use the funds to purchase high-performance analysis equipment and server hardware," noting, "As market demand for digital twins increases, the price of high-performance GPUs has risen significantly." He emphasized, "Since this is an industry requiring high technical expertise, securing excellent specialized personnel is a competitive advantage," and added, "We will recruit key personnel for platform advancement."

Eate is also pursuing overseas expansion. The company has established an overseas branch in Singapore to develop overseas markets, focusing on Southeast Asia. CEO Kim explained, "We will focus on overseas business based on domestic references such as smart cities, building energy management, and secondary batteries," and added, "Starting this year, we will actively promote digital twin construction cases by attending major conferences held abroad."

Eate's revenue increased from 300 million KRW in 2022 to 2.2 billion KRW by the third quarter of last year. It is estimated to reach 16.4 billion KRW this year. The company expects profitability to improve as the digital twin market matures. CEO Kim said, "Our business structure allows profitability to increase rapidly as revenue grows," adding, "Existing clients have high revenue continuity, and the market is expanding in areas where Eate has strengths, such as smart cities, secondary batteries, and building energy management." He expressed confidence, saying, "With our unique technology, we will lead the digital twin industry not only in Korea but globally," and "We will contribute to achieving the national vision of 'Realizing a Digital Model Nation.'"

Eate will conduct demand forecasting for institutional investors until the 2nd of next month and then finalize the public offering price. The expected price range is 14,500 to 18,500 KRW. Public subscription for general investors will be held from the 13th to the 14th of next month.