Expanding the use of AI for Upstage, SKT, LG, and NC
Broad reach into materials discovery and startup ecosystems
Domestic artificial intelligence (AI) models are rapidly expanding their application across a variety of industries, including legal services, gaming, cosmetics research and development (R&D), and the startup ecosystem. In the generative AI market, which was previously dominated by large global technology companies, Korean companies are now establishing their own AI models in real-world service and industrial environments.
On May 18, the Ministry of Science, Technology, and Information Communication released the second installment of the series, “Our K-AI model is being deployed in the field,” which introduces examples of the application of domestically produced AI models to industrial environments.

said Sungrae Park, research director at Upstage NFM Center. Provided by Ministry of Science, Technology, Information and Communication
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From legal examinations to conversations with game characters…Expanding the uses of K-AI
Legal tech company Law&Company is currently applying Upstage’s proprietary AI model “Solar Open” to its legal AI service “Superlawyer,” and is conducting a beta test for government agencies.
This service supports core legal tasks such as case research, legal review, and preparation of preliminary documents. The government hopes that by utilizing domestically produced AI models, it will be possible to provide high-quality legal AI services even in environments where security is a priority.
Sungrae Park, Principal Researcher at Upstage NFM Center, commented, “We continue our research and development with the goal of establishing Korean AI pride among global giants. We are focused on developing foundational models that will be the basis for future innovations in Korean AI.”
Applications of K-AI are also expanding in the gaming field. Krafton is using SK Telecom’s unique AI model “AX K1” to develop PUBG Ally, an AI character that can talk and cooperate with players.

Hyunseung Kim, lead developer of PUBG Ally at Krafton AI Applied Research Lab Provided by the Ministry of Science, Technology, Information and Communications
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AX K1 is a model with strengths in understanding the Korean language and cultural background, and is used to improve the naturalness and quality of Korean conversations for in-game AI characters. Crafton aims to further evolve the interaction between players and AI characters and strengthen its competitiveness in the global game market.
Kim Hyun-sung, head of PUBG Ally development at Krafton AI Application Research Institute, said, “Unlike existing NPCs, PUBG Ally cooperates with users and responds proactively. By leveraging SK Telecom’s AX K1, we plan to further develop a system that improves the quality of Korean conversation and provides players with a new gaming experience.”
“Discovering materials that used to take 22 months now takes just one day.”
LG AI Research applied the company’s material discovery AI model “EXAONE Discovery” to the development of cosmetic raw materials for LG Life Health Care.
The model learns from large-scale molecular structure and chemical reaction datasets to predict material properties and synthesis outcomes. According to the government, this has shortened the process of discovering new materials for cosmetics from about 22 months to just one day.
Support for the startup ecosystem is also expanding. NC AI collaborates with the Ministry of Small and Medium Enterprise Startups and the Korea Entrepreneurial Development Research Institute to participate in a startup support program based on a unique AI model.
The initiative aims to help startups leverage domestic AI models to develop industry-specific AI solutions and bring them to market. The government explained that in addition to NC AI, various domestic AI companies are participating in the “Modu-eui Challenge AX” project.
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“Domestic AI models have been rapidly adopted in industry and service settings, proving their competitiveness. We will continue to support K-AI so that it can become a core foundation for industrial innovation and the growth of the startup ecosystem,” the Ministry of Science, Technology and Information Communications said.
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