Korea Exchange (KRX) is partnering with an artificial intelligence (AI) startup to apply AI technology to core operations.
The exchange said on the 13th that, together with the AI technology startup "Fair Labs," which it acquired in Feb., it has introduced AI technology into core capital market operations.
The exchange and Fair Labs launched the "AX (AI transformation) consultative body" immediately after the acquisition. They are carrying out related projects by instantly implementing demo versions that reflect ideas from on-site departments and improving completeness through practical feedback.
First, AI will be introduced into the task of capturing key information on listed corporations. To collect critical information directly linked to trading halts, such as embezzlement, breach of trust, and defaults, from the vast amount of news at home and abroad, they plan to use a solution powered by Fair Labs' AI technology.
Unlike existing keyword searches, which mix in low-relevance or duplicate information, the solution precisely filters out meaningful information that requires actual market action through AI-based, sophisticated contextual inference.
AI will also be adopted for market action verification procedures. They plan to develop a function in which AI closely analyzes disclosure materials and then checks the issues that require market actions (such as designating or lifting management status) on the next trading day and provides a report.
In the index business, Fair Labs' AI technology will be introduced across the management of the industry classification system to automate the management process. The plan is to lay the groundwork to dramatically improve classification accuracy and maximize the commercial value of the information business.
In particular, AI will precisely analyze corporations' revenue composition and even their detailed business segments, leading to the development of "micro-sector indexes" that timely reflect the latest industry trends and new growth themes.
The exchange plans to expand the scope of cooperation with Fair Labs beyond technical support for internal tasks to active use in external revenue businesses.
Meanwhile, Fair Labs was recently selected as the lead institution for the "culture technology (CT) research and development project," totaling 4.1 billion won, promoted by the Ministry of Culture, Sports and Tourism and others.
An exchange official said, "Collaboration with Fair Labs will further enhance the accuracy and reliability of listing disclosures and market operations," adding, "We hope Fair Labs will grow into a specialized company that generates AI results across various industries beyond finance."