en.Wedoany.com Reported - Flitto has seen the value of its contracts for supplying data for AI language model research and development more than double, following additional orders from a global tech giant. With the additional data orders from the global IT company, the total scale of the two contracts has increased to approximately 31.5 billion KRW (based on Korean won).
According to a correction announcement disclosed through the Electronic Disclosure System (DART) on the 29th, the value of the first contract increased from the original 10.03935 billion KRW to 22.66598 billion KRW. The value of the second contract increased from 3.87767 billion KRW to 8.88867 billion KRW. Both contracts saw their values amended due to additional orders from the client. In US dollar terms, the contract values are 16.120902 million USD and 5.852433 million USD, respectively. Based on an exchange rate of 1,500 KRW per USD, data exports for just the first three quarters of this year are expected to generate approximately 33 billion KRW in revenue. Under the Korean International Financial Reporting Standards (K-IFRS), Flitto's total consolidated revenue for last year was approximately 36 billion KRW, meaning the revenue from these two contracts in the first three quarters already exceeds 90% of last year's total annual revenue.
The expansion in contract scale is directly attributable to the growing demand for AI data from global tech giants. As generative AI competition enters a phase focused on improving model performance, high-quality processed and refined data, which can be directly used for language model research and development, is valued more highly than raw data. The data supplied by Flitto is processed and refined according to the requirements of the contract counterparty before delivery.
The significance of this disclosure lies in the fact that additional orders from existing clients directly drove the increase in contract value. The AI data business requires not only data holdings but also project execution experience, quality management capabilities, delivery responsiveness, and an understanding of global client needs. Additional orders from the same client indicate the data business has the potential for continuous expansion.
Flitto CEO Lee Jeong-soo stated, "Before the generative AI market fully launched, Flitto emphasized that data is ultimately the core of AI competitiveness. Recently, global tech giants have increased their AI investments, leading to rapid growth in demand for high-quality AI data, and this market shift is already reflected in Flitto's revenue growth." Lee added, "The AI data market will continue to grow in the future, but truly competitive companies should possess experience in executing large-scale projects, data quality management capabilities, and experience dealing with global clients. I hope there will be more domestic attention in Korea on the importance and industrial value of AI data. Flitto will leverage its accumulated experience and technology to lead the global market."
