We will build annual revenue to 100 billion won by 2030 based on artificial intelligence (AI) that operates on manufacturing and battlefronts, and become Korea's leading physical AI corporations.
Chief Executive Yoon Seong-ho of MakinaRocks said this at an initial public offering (IPO) press briefing held on the 6th at 63 Square in Yeouido, Seoul.
Founded in 2017, MakinaRocks is a homegrown AI corporations that has grown around the AI operating system (OS) "Runway," which makes the operation of various facilities, equipment, and robots in industrial sites intelligent based on AI. Yoon emphasized, "MakinaRocks is a corporations that has built AI that works in the roughest and most unpredictable environments, from factory floors to battlefields."
Runway, developed in-house by MakinaRocks, supports integrated management from AI development to deployment, operation, and inspection even in closed-network environments disconnected from the internet. Based on this, it enables high-difficulty AI operations in industrial sites, including process optimization, equipment control, anomaly detection, and weapons systems operation.
Yoon said, "The first places where physical AI becomes a reality are not with Humanoid Robot but on manufacturing sites and battlefronts, but general-purpose AI does not meet the precision, reliability, and security requirements that physical AI demands in the field," adding, "What is needed here is not a better AI model but an operating system that supports operational data from real industrial sites and AI execution."
He explained, "Just as PCs have Microsoft (MS) Windows, an AI operating system lets you build and use a variety of AI applications," adding, "MakinaRocks has built solutions based on Runway to solve numerous problems in industrial sites, and in the process has secured more than 25TB (terabytes) of field data, widening the gap with latecomers."
He added, "There is a $1 trillion (about 1,400 trillion won) market opportunity for AI applied to the myriad facilities, equipment, and robots in industrial sites," and "We will use this listing as a starting point to leap into a global physical AI company."
MakinaRocks has secured domestic conglomerates such as Samsung, Hanwha, Hyundai, LG, and SK, and defense agencies including the Agency for Defense Development (ADD), the Joint Chiefs of Staff (JCS), and the Navy 1st Fleet Command as customers, and has applied more than 6,000 industry-specialized AI models to industrial sites to date. Last year's revenue was 11.5 billion won, and 68% of total revenue came from conglomerate customers and the defense sector.
The company is still in the red, but it expects to turn a profit in 2027 as it accelerates its push into the manufacturing and defense AX (AI transformation) markets centered on Runway. The reason is that, due to the nature of manufacturing, once an AI system is adopted, replacement expense is high, creating a "lock-in" effect in which existing customers renew contracts.
Yoon said, "The growth rate for conglomerate customers and the defense sector is growing rapidly at an average annual 81%," adding, "This year's revenue target is 22.5 billion won, and as of the end of March, we have already secured 13.1 billion won, more than half of the annual revenue."
He added, "The 2030 revenue target is 100 billion won, and we expect about 80% of that to come from Runway."
MakinaRocks plans to use funds raised through the listing to advance Runway and expand into overseas markets. Yoon said, "Our goal is to advance Runway into a dark-factory OS for autonomous manufacturing and a defense OS that can be used to support decision-making on real battlefields and to make weapons systems intelligent," adding, "We also plan to use part of the investment to accelerate entry into the Japanese and European markets."
This year, the company will begin full-fledged overseas expansion centered on Japan. Yoon said, "Japan has an industrial structure centered on manufacturing similar to Korea, but the industry size is $86.71 billion (about 1,260 trillion won), an ultra-large market twice the size of Korea's," adding, "We established a Japanese subsidiary in Apr. last year and have secured four clients so far."
He said, "Starting with entry into the Japanese market, we will speed up expansion into Europe and the Middle East to strengthen our mid- to long-term growth base and become the corporations that realizes physical AI first in Korea."
MakinaRocks will be the first among homegrown AI corporations to list on the KOSDAQ market this year. After conducting book-building through the 6th of this month, it plans to go public on the KOSDAQ market on the 20th, following two days of retail subscription on the 11th and 12th.
The total number of public offering shares is 2,635,000, and the desired offering price band is 12,500 won to 15,000 won. The expected market capitalization is up to 263.1 billion won.