Papago Plus, a premium version of a popular AI translation service. (Image courtesy of Naver Cloud)
SEOUL, Oct. 7 (Korea Bizwire) – In a significant shift within South Korea’s tech landscape, companies from industry giants to small startups are increasingly launching paid artificial intelligence (AI) services, signaling a new phase in the commercialization of AI technology.
Naver Cloud, a subsidiary of South Korea’s leading IT company Naver, recently introduced Papago Plus, a premium version of its popular AI translation service.
This business-oriented offering extends image translation capabilities to PC users and includes text and design editing features within images, previously available only on mobile applications.
As Naver, long considered a frontrunner in AI development in South Korea, continues to integrate AI across its various platforms, rival Kakao is poised to unveil its new AI service, Kanana, at an upcoming developer conference.
This move is expected to intensify competition between the country’s two major internet portals in the AI service arena.
Hancom Docs AI (Image courtesy of Hancom)
The trend extends beyond tech giants. Hancom, a veteran software company known for its word processing applications, launched Hancom Docs AI on September 30.
This subscription-based document editing service incorporates generative AI to draft documents, create tables, and generate images from simple prompts, aiming to boost efficiency in document creation.
Pulitzer AI (Image courtesy of Starseed)
Startups are also joining the fray. Starseed recently updated its AI-powered press release drafting tool, Pulitzer AI, introducing a paid membership service just five months after its initial launch.
CEO Son Bomi cited growing customer loyalty and increasing familiarity with subscription models among Korean consumers as factors behind the move to monetization.
Liner, another startup, which began offering AI search subscription services to students and researchers last August, is now focusing on expanding its paid subscriber base, particularly in the United States, where about 60% of its subscribers reside.
However, industry observers caution that the rush to monetize AI services may not guarantee immediate profitability. The global AI boom, triggered by OpenAI’s ChatGPT launch in November 2022, has led to massive investments, but concerns about profitability persist.
Monetization strategies for AI services typically revolve around advertising and user fees. Companies unable to secure large user bases for ad revenue are pivoting towards paid subscription models.
The pressure to show results, especially for startups in a tightened investment climate, is another driving factor behind this trend.
As competition intensifies, industry insiders predict a widening gap between companies that successfully differentiate their services and those that struggle to generate revenue.
“We’ll see more firms attempting to monetize AI services,” said an IT industry source. “The contrast between those who succeed in creating profitable, distinctive services and those who don’t will become increasingly stark.”
Kevin Lee (kevinlee@koreabizwire.com)
