[Click eStock] "Uracle, Spotlight on AI Partnership with LG"

Kiwoom Securities announced on the 26th that it has signed a partnership agreement for AI business cooperation with LG AI Research and highlighted Yuracle. Both parties plan to combine their AI platforms to supply to enterprises. Their strategy is to strengthen product competitiveness by combining AI technologies, jointly discover business opportunities, and secure a leading position in the enterprise AI market.

On the same day, Kim Hak-jun, a researcher at Kiwoom Securities, explained, "This agreement announcement is not just a future-oriented business agreement but one that can quickly contribute to performance."

Yuracle is a company that supplies and operates frameworks for mobile app and service development and is the developer of the AI platform 'Athena.' LG AI Research's self-developed large language model (LLM) 'EXAONE' is evaluated as a cost-effective, high-performance model competitive even overseas.

According to the agreement, EXAONE LLM will be used when supplying to enterprises, and Yuracle's Athena will be utilized for optimization, operation automation, chatbots, and system-linked data platforms. Researcher Kim explained, "We have secured performance cases through the Ministry of the Interior and Safety's Safety Report research project, and currently, proof of concept (POC) is underway at 10 institutions, including three government agencies, four financial institutions, and two general companies."

Additionally, proposals have been made to LG Group affiliates, which is expected to increase scalability. Concrete results are anticipated around June to July, and performance expansion through the AI platform is expected to accelerate in the second half of the year. The EXAONE and Athena AI platforms record setup costs as sales, and thereafter, maintenance revenue occurs annually at about 10-15% of license sales. The scale can expand from projects worth several hundred million won to several billion won.

Researcher Kim added, "The consolidated performance for this year is expected to be 53.3 billion KRW in sales and 5.1 billion KRW in operating profit, increasing by 12.0% and 159.4% respectively compared to last year. Although costs such as AI and cloud investment and company overhead are increasing, profit margins will improve when AI service POC projects convert into orders. As solution license fees increase, an operating leverage effect will also appear."