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Analysis of South Korea’s AI Industry and Saltlux’s AI Search Engine ‘Goover’

GOOVER DAILY REPORT August 3, 2024
goover

TABLE OF CONTENTS

  1. Summary
  2. Current State of South Korea’s AI Industry
  3. Company Analysis: Saltlux
  4. Saltlux’s AI Search Engine ‘Goover’
  5. Competitive Landscape and Strategic Collaborations
  6. Conclusion

1. Summary

  • This report delves into South Korea’s AI industry, with a focus on significant players like Saltlux and its innovative AI search engine, ‘Goover’. It explores the current market size, which stood at $1.83 billion in 2022 and is projected to grow to $20.7 billion by 2032. Key technological contributions from companies like Saltlux, which developed the Lucia2 AI model and launched ‘Goover’, are highlighted. The report underscores Saltlux’s market strategy involving global expansion, particularly targeting the US and Indonesian markets, and strategic collaborations with companies like NHN to enhance technological capabilities and market reach.

2. Current State of South Korea’s AI Industry

  • 2-1. Market Size and Growth Rate

  • The AI market in South Korea is experiencing rapid growth. As of 2022, the market size was approximately $1.83 billion, with a compound annual growth rate (CAGR) of 27.5%. By 2032, the market is projected to reach $20.7 billion. This growth is largely driven by active government investment and support, which have enabled key companies to excel in AI technology.

  • 2-2. Key Players and Their Contributions

  • Several leading companies are making significant contributions to the AI field in South Korea. Saltlux, founded in 2003, is prominent for its AI-based innovative solutions, including the AI search engine 'Goover', AI platform 'Lucy', and big data analysis tool 'Wanted'. Saltlux has also been integral in providing AI consulting systems like 'Adam Assistant' and AI platform 'Adam'. Daum Quest, established in 2000, is notable in its natural language processing and search engine innovations, offering products such as the integrated search solution 'Mariner 3', product search solution 'Diver 4', and social media solution 'Brams VOC'. Both companies have strong records in technological innovation and market performance.

  • 2-3. Technological Innovations

  • Technological innovation is at the forefront of the AI industry in South Korea. Saltlux's key technologies include 'Luxia', a leading large language model that ranked first for models under 35B parameters on Hugging Face's open LLM leaderboard. 'Luxia 2' offers improved accuracy with almost twice the training data as its predecessor. 'Goover', Saltlux's AI search engine, utilizes Graph RAG technology and Connectome to deliver precise search results and personalized information. Daum Quest's notable technologies involve the integration of its NLP and search engine capabilities, as evidenced by its range of solutions which facilitate large-scale integrated searches, specialized product searches, and social media data analysis. Both companies continuously push the envelope of AI applications and development.

3. Company Analysis: Saltlux

  • 3-1. Overview of Saltlux

  • Saltlux, established in 2000, is a specialized AI company known for its data collection and analysis capabilities, large language model (LLM) development, AI chatbot services, and meta-human creations. As of 2023, Saltlux employed approximately 400 AI developers and served around 2000 domestic and international clients, including public institutions and financial companies. Saltlux's significant AI products include the Luxia AI model and the AI appliance called 'Luxia On'.

  • 3-2. Technological Innovations (Goover and Lucia2)

  • Saltlux has developed notable technological innovations like the AI search engine 'Goover' and the large language model 'Lucia2'. Goover operates based on the Lucia2 model, which boasts twice as much training data as its predecessor, Lucia1. Lucia2 achieved the number one performance ranking for models under 35 billion parameters on Hugging Face’s open LLM leaderboard. Goover's key features include multi-language support, solving information overload problems, and providing deep question-and-answer functionalities using technologies like Connectome and Graph RAG. Initial market feedback highlights Goover’s usefulness in providing tailored information and automated reports quickly, particularly beneficial in sectors like finance and media.

  • 3-3. Global Expansion Strategies

  • Saltlux is actively pursuing global market expansion with Goover as a pivotal part of its strategy. The AI search engine was simultaneously launched in the United States and South Korea on June 30, 2024, during the 'Saltlux AI Conference (SAC 2024)'. For the U.S. market, Saltlux is employing aggressive marketing strategies and subscription-based service models to rapidly build a user base. Additionally, Saltlux is expanding into the Indonesian market through its subsidiary, Plunet, which focuses on personalized content recommendations and AI-generated reports. Localization strategies tailored to the Indonesian market are essential components of this expansion effort.

  • 3-4. Collaborations and Strategic Alliances

  • Saltlux has formed several strategic alliances to strengthen its technological and market positions. On July 14, 2024, Saltlux CEO Kyung-il Lee announced a strategic partnership with NHN, involving NHN acquiring 67,800 shares (5.69%) of Saltlux and Saltlux acquiring 94.95% of NHN's natural language processing specialist NHN Diquest. This partnership aims to combine NHN's cloud infrastructure with Saltlux’s AI generation technology. Additionally, Saltlux has collaborative agreements with companies like Polaris Office, Samsung Electronics, and Pai Digital Healthcare, leveraging their strengths to enhance AI-based solutions across various sectors. These collaborations underscore Saltlux's commitment to technological advancement and market competitiveness.

4. Saltlux’s AI Search Engine ‘Goover’

  • 4-1. Introduction and Background

  • Saltlux, an AI specialist company founded in 2000, has developed various AI technologies and services including data collection and analysis, large language model (LLM) construction, AI chatbot services, and meta-human creation. As of 2023, Saltlux employs approximately 400 AI developers and serves around 2000 domestic and international clients, including public institutions like the Ministry of the Interior and Safety and financial institutions like KB Kookmin Bank. Goover is Saltlux's AI-based search engine, built on the Lucia2 AI model. It offers personalized search results and in-depth reports based on user interests and uploaded documents. Goover aims to capture the $120 billion global search service market and is expected to be widely used in fields like finance, venture capital, marketing, strategic planning, research, and media broadcasting.

  • 4-2. Technological Features (Lucia2, Connectome)

  • Goover operates on Saltlux's large language model (LLM) Lucia2, which surpasses its predecessor Lucia1 with double the training data and higher expertise in answer accuracy. Goover uses advanced technologies like Graph RAG (Graph Rapidly Augmenting Generation) to enhance search results by utilizing the structural features of graph data and Connectome, an AI brain for real-time web tracking. These technologies ensure high reliability and accuracy in information provided. Lucia2 has been recognized as the top-performing model on HuggingFace’s open LLM leaderboard for models under 35B. It has been leveraged for various applications, including the Seoul Transportation Corporation's Safe ChatGPT.

  • 4-3. Global Market Launch and User Reactions

  • Goover was launched simultaneously in the US and South Korea on July 3, 2024, to swiftly establish brand recognition in the global search market. The US launch leverages opportunities in Silicon Valley, while the Korean market benefits from strong governmental support and high interest in AI technologies. Initial market reactions have been positive. In the US, feedback from Silicon Valley-based networking has been favorable, while in South Korea, government support for AI, such as the 8 public AI services development policy, has boosted its recognition. Goover has received praise for its deep analysis and tailored information provision capabilities. Saltlux also established a subsidiary in Silicon Valley to foster partnerships and secure local investments, further strengthening its global presence and technological advancements.

  • 4-4. Business Model and Revenue Generation (Subscription Service, Advertising)

  • Goover generates revenue through a subscription-based service and advertising. Users can subscribe to Goover's AI search services for a specific period, paying a subscription fee for access. Additionally, Goover partners with various advertisers to display ads on its platform, generating advertising revenue. Over the past three years, Saltlux has invested approximately 40 billion KRW in the Goover project, primarily funded through internal resources and earnings from B2B and B2G operations. The company has also raised additional funds through third-party allotment capital increases to support ongoing development projects related to Goover.

5. Competitive Landscape and Strategic Collaborations

  • 5-1. Comparison with Competitors (Google, Microsoft Bing, Perplexity)

  • Saltlux's AI search engine 'Goover', using the Lucia2 AI model, competes with major players like Google, Microsoft Bing, and Perplexity in the global search market. 'Goover' has been launched in both the US and South Korea simultaneously, and it aims to secure a foothold in the 120 billion-dollar search service market. The competitive edge of 'Goover' lies in its unique features such as Graph RAG technology for providing tailored information and automatic deep report generation. The early market response to 'Goover' has been positive, with users appreciating its personalized information delivery and automated reporting functionalities. This positions Saltlux as a significant competitor against established giants like Google and Microsoft Bing.

  • 5-2. Strategic Partnerships and Joint Ventures (NHN, Polaris Office, Pi Digital Healthcare)

  • Saltlux has engaged in several strategic partnerships and joint ventures to strengthen its market presence and technological capabilities. Collaborations with NHN, Polaris Office, and Pi Digital Healthcare are notable. These partnerships aim to enhance AI solutions across various sectors. For example, Saltlux's collaboration with NHN focuses on integrating advanced AI models into NHN's platforms, thereby improving user experience through cutting-edge AI technologies. The joint venture with Polaris Office seeks to innovate office productivity tools by leveraging AI for task automation and enhanced data management. Similarly, Pi Digital Healthcare is working with Saltlux to deploy AI-driven healthcare solutions, enhancing diagnostic accuracy and patient care through personalized AI applications.

  • 5-3. Market Expansion (US and Indonesia)

  • Saltlux has actively pursued market expansion strategies, prominently targeting the US and Indonesian markets. Notably, the dual launch of 'Goover' in the US and South Korea signifies a strategic move towards global expansion. This approach has been well-received, with the US market showing considerable interest in Saltlux's AI capabilities. In Indonesia, Saltlux aims to penetrate the burgeoning digital market by collaborating with local businesses and industries, tailoring AI solutions to meet regional needs. These expansions are part of Saltlux's broader strategy to establish a strong international presence, driven by advanced AI products and localized strategies that cater to the unique requirements of each market.

6. Conclusion

  • The report illustrates the remarkable growth trajectory and technological advancements within South Korea’s AI sector, mainly fueled by entities such as Saltlux and its AI search engine, ‘Goover’. Saltlux’s technological innovations, including the development of the powerful Lucia2 model, underline its competitive edge. The dual market launch of ‘Goover’ in the US and South Korea signifies a strategic move towards broader market presence. Despite challenges like operational losses, strategic alliances with firms like NHN bolster Saltlux's market and technological capabilities. Future prospects point towards sustained growth, driven by continuous innovation, strategic partnerships, and targeted market expansion efforts in global arenas such as the US and Indonesia. Saltlux, through ‘Goover’, aims to address real-world needs across diverse industries, thereby solidifying its standing in the highly competitive global AI landscape.

7. Glossary

  • 7-1. Saltlux [Company]

  • Saltlux is a key player in South Korea’s AI industry, known for its AI search engine ‘Goover’ and the large language model ‘Lucia2’. The company focuses on global market expansion and continuous technological innovation to remain competitive.

  • 7-2. Goover [Product]

  • Goover is Saltlux’s AI-based search engine that provides customized information and automated reporting capabilities. It utilizes 'Lucia2' and Connectome technology, significantly impacting the global AI search engine market with its unique features.

  • 7-3. Lucia2 [Technology]

  • Lucia2 is Saltlux’s large language model that powers the AI search engine ‘Goover’. It enhances information accuracy and user experience through advanced natural language processing algorithms.

  • 7-4. NHN [Company]

  • NHN is a collaborator of Saltlux in integrating cloud infrastructure with AI technology. Their partnership enhances the operational capabilities of Saltlux’s AI products.

8. Source Documents