DOUZONE, a representative domestic enterprise resource planning (ERP) corporation, has embarked on establishing the fourth Internet bank.
Chairman Kim Yong-woo founded DOUZONE in 2003, marking a challenge in the banking sector after 22 years. DOUZONE plans to establish the country's first specialized Internet bank for small and medium-sized enterprises and small business owners, 'DOUZONE Bank,' based on its accumulated ICT technology and know-how.
DOUZONE is a native ICT corporation that leads the ERP market. ERP is a system that integrates the management processes of all corporate activities, including production, logistics, finance, and accounting.
◇Applying AI to ERP...50% of employees are developers
DOUZONE has grown by developing technologies in response to changing trends in cloud, big data, and AI (artificial intelligence). This comes from Chairman Kim's management philosophy that "ICT corporations cannot grow without responding to new technologies." About 50% of DOUZONE's total employees (1,806) are developers.
DOUZONE recorded a revenue of 402.3 billion won last year. This was the first time in its history it surpassed an annual revenue of 400 billion won. The company's operating profit was 88.1 billion won. Applying AI technology to core solutions, such as the ERP platform 'Amarans,' proved effective, maximizing efficiency for client operations by integrating AI assistants.
For instance, using the DOUZONE ERP platform with applied AI technology allows for analyzing accounting data to predict estimated tax amounts and to find omitted invoices by comparing them with last month's data. This exemplifies Chairman Kim's vision for the "AI transformation (AX) in the ERP market." DOUZONE is intensifying its AI business this year, following last year.
The governance structure has also been improved. In February last year, DOUZONE absorbed its largest shareholder, DOUZONE Holdings. This change helped to eliminate inefficiencies in the overlapping governance structure that arose from the transition from the top-tier holding company DOUZONE Holdings to the intermediary holding company DOUZONE. At the same time, the largest shareholder of DOUZONE was changed from DOUZONE Holdings to Chairman Kim Yong-woo (with a 21.51% equity stake), simplifying the governance structure.
Currently, DOUZONE has subsidiaries including Keycom (electronic fax solutions), DOUZONE Next (IT hardware manufacturing), DOUZONE B&F (financial data linkage service maintenance), DOUZONE E&N (corporate job training and online English), and Electronic Newspaper (media company).
◇Challenge of a specialized Internet bank for small businesses... Expecting obstacles due to lack of financial experience
DOUZONE plans to establish the 'DOUZONE Bank,' a specialized Internet bank for small and medium-sized enterprises and small business owners this year, aiming to introduce innovative finance based on corporate data.
However, the lack of experience in the financial sector may pose a hindrance. Due to this, it is anticipated that DOUZONE will form a consortium with major commercial bank Shinhan Bank, though nothing has been confirmed yet.
Considering the conservative stance of financial authorities regarding the fourth Internet bank, it appears that significant effort and time will be required for DOUZONE to compete with other corporations to obtain the necessary permits for establishing the Internet bank.
DOUZONE has positioned itself with financial services specialized for small and medium-sized enterprises and small business owners, which have been challenging for traditional banks to expand into. Utilizing high-quality corporate data and solution technology accumulated from providing ERP solutions to corporations, DOUZONE plans to offer tailored financial services.
Last year, it also established a company called 'TechFinRatings' that develops credit evaluation models utilizing corporate data and AI. The industry is keenly watching whether DOUZONE Bank can create a new paradigm for financing small and medium-sized enterprises and small business owners that diverges from existing standardized financial services.
A financial sector official noted, "The precision and feasibility of the credit evaluation model that DOUZONE is developing for small and medium-sized enterprises and small business owners are crucial," adding, "Especially since these entities are sensitive to economic conditions, the potential for arrears may rise, making it important to manage and ensure soundness."
This official also stated, "While it is important for small business owners to have access to loans under better conditions, it is equally essential to continuously monitor them and explore various ways to support their sustained growth to prevent them from falling into insolvency."
The fact that global sales account for less than 1% is also cited as a challenge to address. There is a growing threat as global companies like SAP and Oracle are aggressively targeting the domestic ERP market, necessitating an enhancement of competitiveness. In particular, the increase in research and development expenses and skilled IT personnel salaries is becoming a burden.
An analyst at a securities firm mentioned, "For DOUZONE to grow to the next level, strengthening overseas business based on cloud and AI technology is essential," but added, "However, with formidable competitors like SAP and Oracle, the situation is not as easy as it sounds."