[IT Cafe] Why Did G-Dragon Choose to Advertise for a Little-Known Company? The Answer Lies in His 'Love for AI'

Luitton draws attention with G-Dragon as advertising model
Galaxy Corporation establishes AI Entertech Research Center at KAIST
Luitton surpasses 5 million users, outpacing competitors
Targeting younger users, now aiming for broader AI adoption

Luitton Technologies (Luitton), an operator of a generative artificial intelligence (AI) platform, has recently made headlines by hiring the singer G-Dragon, whose endorsement fees amount to several billion won, as its advertising model. Large-scale outdoor advertisements featuring G-Dragon have been displayed in crowded shopping malls, on major digital billboards in city centers, and on buses operating in Seoul and Gyeonggi Province. The selection of G-Dragon as the exclusive model for a startup has surprised many, while also drawing attention to Luitton's bold move to actively promote its brand to the public for the first time in four years since its founding.

Why did G-Dragon become the advertising model for an AI company like Luitton? First, G-Dragon's passion for AI is well known. In January 2024, he made a surprise appearance at CES 2024, the world's largest electronics and IT exhibition held in Las Vegas, astonishing visitors. Subsequently, G-Dragon was appointed as an invited professor in the Department of Mechanical Engineering at KAIST, where he delivered lectures. His agency, Galaxy Corporation, is a company with ambitions to open new horizons in the entertainment industry by utilizing cutting-edge technologies such as AI.

This year, Galaxy Corporation established the "AI Entertech Research Center" within the KAIST Department of Mechanical Engineering to integrate entertainment and advanced technology. The center plans to conduct research on digital twin technology for Hallyu artists including G-Dragon, convergence studies between K-culture and science and technology, and the development of artist avatars.

According to the startup analysis platform 'Hyuksinui Sup', Ryuten began to see an increase in consumer transactions starting December 2024, recording 73,000 transactions in May.

Luitton has attracted significant attention in the venture capital industry, with a cumulative investment of 126.8 billion won to date. Even during the so-called "startup winter," when funding for startups dried up, Luitton continued to thrive by pushing into the Japanese and Middle Eastern markets. By offering a variety of free AI productivity tools, the company surpassed 5 million monthly active users (MAU) just 1 year and 10 months after launching its service. This is a shorter period than Toss (about 3 years and 3 months) and Danggeun (2 years), demonstrating the strength of a homegrown AI startup.

Luitton's business model is also similar to that of Perplexity, a US AI company often described as a rival to Google. Both Luitton and Perplexity use various external AI models to provide users with the answers and up-to-date information they seek, which has fueled rapid growth and increased customer satisfaction. While Luitton has fronted G-Dragon as its advertising model, Perplexity has hired Lee Jungjae, the global star and lead actor of "Squid Game," as its spokesperson. Furthermore, Perplexity has agreed to jointly develop entertainment-AI convergence services with Artist Company, where Lee Jungjae serves as co-CEO. This demonstrates how AI companies are partnering with the entertainment industry to accelerate the popularization of their services.

According to the startup analysis platform "HyuksinuiSup," Luitton is highly popular among young people, with users aged 20 and under accounting for 62% of the total.

Recently, Luitton has accelerated its growth by actively promoting its character AI chat service and advertising business. According to the startup analysis platform HyuksinuiSup, the number of Luitton's consumer transactions increased fivefold from 15,000 in December 2024 to 73,000 in May. Analysis of consumer demographics shows that users aged 20 and under accounted for 62% of the total, indicating strong popularity among younger generations. Now, Luitton faces the challenge of expanding its customer base to include middle-aged and older users who use ChatGPT or are still unfamiliar with AI. Lee Seyoung, CEO of Luitton, said, "To realize 'one person, one AI,' we are exploring ways to introduce AI technologies that can boost productivity for small business owners and micro-enterprises."