Korean system integration companies keep focus on AI

[Courtesy of POSCO DX]

The information technology (IT) subsidiaries of South Korea’s major system integration (SI) companies are undergoing organizational restructuring and strengthening new business units.

The subsidiaries aim to shed the traditional SI company image and focus on future-oriented areas including artificial intelligence (AI), cloud, and mobility, signaling a commitment to improving their overall structure.

POSCO DX Co. held a press conference on AI technology on Wednesday where it introduced its industrial AI technology.

POSCO DX separated its AI technology center from its research institute in January 2024, concentrating on developing AI technology specialized for manufacturing processes that are applicable to POSCO Group’s sectors such as steel and secondary batteries.

Yoon Il-yong, executive director at POSCO DX Technology Research Institute, described the future direction of innovation in manufacturing as “autonomous factories that can perceive, judge, and control.”

The center showcased examples of AI usage such as unmanned operation of loading cranes using AI and leveraging large language models for use in equipment data.

Lotte Data Communication Co., an IT subsidiary of Lotte Group, will be removing Data Communication from its name after 28 years.

Scheduled for approval at the regular shareholders’ meeting on March 21st, 2024, the company plans to include “Innovate” in its name.

Apart from IT system construction, the company has been promoting new businesses such as metaverse, electric vehicle charging infrastructure, and autonomous driving.

Other SI companies have similarly been establishing new AI-related organizations or restructuring around AI since 2023 to accelerate the discovery of new businesses.

Samsung SDS Co., which develops enterprise AI solutions along with its cloud services, established a separate organization called XTerra Lab within its research institute in the second half of 2023.

While the Cloud Service Business Unit and the Solutions Business Unit manage the AI technology, XTerra Lab focuses on advanced research. Samsung SDS said it is an organization that will continuously identify future core technologies alongside conducting research on leading technologies in the cloud and AI fields.

LG CNS Co. also set up an AI Center in January 2024 to oversee corporate AI technology research and business. Comprised of teams including the Generative AI Business Unit and the AI Research Institute, the AI Center is driving generative AI service business with around 200 employees.

SK C&C Co. also recently hired external experts in AI, cloud, digital factory, and other new business areas to enhance its competitiveness. It formed a taskforce for new business exploration and established a separate business unit to address the digital factory market.

For its part, CJ OliveNetworks Co. expanded its new business in the smart space field to secure a foundation for future growth by forming an organization responsible for financial IT and public projects in January 2024.