Korea Exchange (KRX) said it acquired FairLabs, an AI-based data analytics startup, to strengthen business competitiveness through companywide artificial intelligence transition and technological advancement. It is the first time the exchange has acquired a startup since its founding.
For this acquisition, the exchange reviewed about 30 candidates in AI and data over the past year. Taking into account technological capabilities and potential synergies with the exchange's business, it selected FairLabs as the final acquisition target.
The acquisition terms include a 67% exchange equity stake and an acquisition price of 6.7 billion won (2.7 billion won for existing shares and 4.0 billion won for new shares).
Founded in 2020, FairLabs has the technical know-how to use AI to process unstructured data—such as news, disclosures, investor relations (IR) and ESG information—into high value-added information usable for decision-making.
It is also assessed to possess both AI architecture design technology and industrial application capabilities, carrying out AI transformation (AX) consulting in collaboration with many public institutions.
Based on new investment funds, the exchange will revamp FairLabs' business foundation by bolstering its professionals and technology infrastructure, and after the acquisition it plans to keep the existing founder-led management in place so the startup's distinctive innovative and agile corporate culture can continue.
In particular, it plans to enhance the technological competitiveness of its existing information businesses, such as index and data, and apply it to index management and product development.
It will also gradually apply AI technology across market oversight operations to improve the exchange's operational efficiency and customer service quality.
Over the mid to long term, it plans to support FairLabs so it can grow into the exchange's core research and development organization and a generator of new revenue.
Chair Jeong Eun-bo of the exchange said, "This acquisition is the first acquisition in the 70-year history of Korea Exchange (KRX) and is significant as the first step toward transforming into a commercialized revenue organization like global advanced exchanges."
Jeong added, "To secure future growth engines for the exchange, we plan to expand various business strategies, not only acquiring corporations but also exploring new businesses and pursuing technological cooperation."