Hancom Group is entering the 'metaverse' market, which has emerged as a keyword in the industry this year. Their plan is to create a synergy effect by fusing together metaverse technology with various affiliates.
According to industry sources, on the 30th of June, Hancom Group became the largest shareholder of Frontis when Hancom Intelligence, a subsidiary of Hancom MDS, acquired a 55% stake in the metaverse platform developing company.
Frontis, established in 2001, has been engaged in performance-reliability evaluation businesses such as weapon systems and automotive electronics, as well as the Internet of Things (IoT) business. Since 2017, it has entered the business of developing extended reality (XR) platforms such as virtual reality (VR) and augmented reality (AR). And with three years of accumulated experience and capacities, it launched the virtual education and conference platform 'XR Pandora.'
Frontis has emerged as a dark horse in the metaverse industry while under preparation for the release of 'XR Life Twin', which houses offices and shopping centers in a vast virtual city. Last year, it was also recognized for its technological prowess by being selected for the 'Global ICT Future Unicorn Fostering Project' hosted by the Ministry of Science and ICT. With 80 employees, and a sales of 12 billion won last year, Frontis is expected to grow rapidly this year thanks to the uptrend of the metaverse.
With the acquisition of Frontis, Hancom will acquire all of its metaverse experts and technology at once.
Last year, Hancom Intelligence, which has become the largest shareholder of Frontis, became a subsidiary spun off from Hancom MDS. It will enter the metaverse market by integrating Frontis technology with its own artificial intelligence (AI) and IoT technology. Various synergies are expected with Hancom Intelligence's recently launched AI-based translation service and a service that automatically translates video content such as real-time broadcasts, movies, and lectures into multiple languages.
In addition to Hancom Intelligence, there are expectations that collaboration with Hancom Group's Hancom Mobility, Hancom Robotics, Hancom InSpace, and Hancom Gold Exchange will be possible. Scheduled for release in the later half of this year, XR Life Twin is expected to provide a platform for virtual land and building transactions through addable assets such as non-fungible tokens (NFTs) based on a blockchain network in the virtual city. There is great potential for the various services of Hancom Group subsidiaries, such as Hacom Gold Exchange, to be utilized within the virtual city.
According to market research firm Strategy Analytics (SA), the global metaverse market is expected to grow more than sixfold from its present 51 trillion won to roughly 315 trillion won by 2025.
An industry official said, “Recently, not only from the gaming industry or startups, but also large corporations such as mobile carriers are paying attention to the metaverse, strengthening investments and technology development. As Hancom Intelligence prepares for an IPO, there is hope that a positive message will be sent throughout the market by its securing of the metaverse, the rising technology of the next generation.”
By Staff Reporter Jisun Kim and Hochun An
(river@etnews.com) (hcan@etnews.com)