[BizLeader] "DirectorsTech, Leaps to Global No.1 with Generative AI Video Technology"

Director Lee Jae-cheol of DirectorsTech: "Utilizing CB for Global Business Expansion"
Morgan Mao, Global CEO: "Expanding Global Network... Attracting New Clients"

"There are many places worldwide with generative artificial intelligence (AI) video production technology, but we are the only ones with a B2B (business-to-business) business model. Although we were founded recently, we are growing rapidly and will leap forward as the global number one company."

Morgan Mao (left), CEO of DirectorsTech Global, and Jaecheol Lee, CEO of DirectorsTech. Photo by Hyunseok Yoo

On the 21st, Directorstech CEO Lee Jae-cheol and global CEO Morgan Mao announced this goal at a meeting held at Bitnine’s headquarters in Gangnam-gu, Seoul.

Bitnine’s largest shareholder, CEO Kang Cheol-soon, signed a management rights change contract through a paid-in capital increase with Directors Company and two others on the 18th of this month. Directors Company, CEO Shin Jae-hyuk of Directors Company, and CEO Lee Jae-cheol of Directorstech are participating in the paid-in capital increase with amounts of 4 billion KRW, 1 billion KRW, and 1 billion KRW respectively. Additionally, Directorstech’s subsidiary, Deluxtech, recently decided on a 2 billion KRW paid-in capital increase targeting Morgan Mao, CEO of AI advertising video production company SKAIWORKS, which it is currently pursuing to acquire.

The meeting was attended by Directorstech CEO Lee Jae-cheol and Morgan Mao, who will serve as the global CEO. Directors Company is an advertising agency that recorded sales of 18.8 billion KRW in 2023. The combined sales of its subsidiaries amount to 71.3 billion KRW. SKAIWORKS, which Directorstech is pursuing to acquire, possesses '3D-based generative AI video production technology.' Morgan Mao, CEO of this company, won the 'LVMH Innovation Award' grand prize at the startup technology exhibition VIVATECH held in Paris, France, in June this year. The LVMH Innovation Award is an award ceremony hosted by the LVMH Group that selects innovative startups annually.

Currently, SKAIWORKS produces video advertisements for various domestic and international companies, including luxury brands under LVMH. CEO Lee Jae-cheol emphasized, "SKAIWORKS’ generative AI technology can significantly reduce the cost and time involved in traditional advertising video production, allowing up to five videos to be produced for the cost of one." He added, "For companies owning brands, product quality must be higher than anything else, and we meet their high standards."

He also introduced the newly prepared AI agent business. An AI agent is a software program that autonomously collects and utilizes data to produce work results. It is scheduled to launch in Korea next year. He explained, "For example, when a clothing brand needs to produce a lookbook, outdoor shooting is required. Our AI agent can create vivid backgrounds using only cutouts (background removal) without outdoor shooting, and since a person only needs to refine the final step, it minimizes human resource requirements."

CEO Morgan Mao explained, "Our technology combines generative AI and 3D expertise, both of which require unique specialized knowledge and have very high technical demands. Through our vast accumulated 3D data library and advanced AI learning methodologies, we achieve results that competitors cannot match."

The decision to sell SKAIWORKS was largely due to the high synergy observed during collaboration with Directorstech. CEO Morgan has maintained a relationship with CEO Lee Jae-cheol since 2017. He said, "Over more than a year of collaboration, we saw the synergy between Directorstech and our company. The best solution we can offer customers is not just simple technology but a combination of account management, creative ideas, and execution processes based on technical solutions. SKAIWORKS with Directorstech is a perfect combination."

He also explained that the reason for participating in Bitnine’s paid-in capital increase was to advance into the global market. He emphasized, "This paid-in capital increase will provide an opportunity to greatly accelerate the expansion of our business model into new brands, industries, and countries. Especially, we thought Korea was a good place to enter the global market."

Directorstech plans to actively pursue global expansion. To this end, part of the 60 billion KRW raised through the recent issuance of 3rd to 6th tranche convertible bonds (CB) will be used for overseas business expansion. CEO Lee Jae-cheol said, "I believe the core of AI technology is speed. If it shortens our time and helps market expansion, we plan to boldly invest funds." He added, "If we invest well and increase corporate value, shareholder value will rise, so we will not waste money."

In particular, CEO Lee and CEO Morgan plan to actively engage in investment and talent acquisition. CEO Mao said, "We plan to expand our global network to attract new clients and recruit outstanding talent. We will actively pursue mergers and acquisitions (M&A) and technology acquisitions with CEO Lee."

CEOs Lee Jae-cheol and Morgan Mao set the goal of growing the company into the world’s number one generative AI video production company. CEO Lee emphasized, "Our business model has already been validated and is profitable, growing rapidly. We will become a game changer in the generative AI video production industry and enter the global top three."

CEO Mao also said, "Our goal is to become number one in the global AI video production field. We will first focus on top luxury brands and then expand to the mass market, actively pursuing global market expansion in the generative AI sector."