Polaris AI

Polaris AI traces back to Leenos, founded in 1991, and has long carried out wireless communication system construction and systems integration for public agencies, including the National Police Agency's 112 reporting system, defense and disaster-safety communication networks, and Incheon International Airport's wireless communication facilities.

Company materials describe the IT segment's main customers as government and public agencies such as police and fire authorities, with a track record that includes building the Incheon airport and police wireless communication systems.

In 2023 the company acquired a 54.8% stake in Power Voice, a voice- and speaker-recognition software specialist, bringing voice AI capability in-house as a subsidiary.

In February 2024 it was acquired by the Polaris Office Group, a global office-software company, and changed its name from Leenos to Polaris AI, with Polaris Uno and Polaris Sewon becoming the largest shareholders.

At the time of the acquisition, the company said it would expand business-to-business and business-to-government services by linking Polaris Office's AI document solutions with Polaris AI's voice-AI and systems-integration business.

An "AI Convergence Research Institute" centered on Polaris Office was subsequently established to coordinate with Polaris AI's ICT division and Power Voice.

In July 2025 the company signed a managed service provider agreement with Naver Cloud to use the HyperCLOVA X large language model for upgrading existing systems and building new AI systems, aiming to expand its partnership into financial and public AI solutions on the strength of its track record building core infrastructure for government ministries and financial institutions.

The casual-goods fashion business built around the Kipling and Eastpak brands, previously run through subsidiary BK Innovation, was fully divested in December 2024, restructuring the company to concentrate resources on IT and AI.

Comparable companies cited include larger and mid-sized IT service firms such as Asiana IDT, LG CNS, Samsung SDS and Datasolution, while the company is categorized as a specialist with a track record in public wireless communication and disaster-safety projects.

Consolidated revenue declined for four straight years, from KRW 80.854 billion in 2022 to KRW 59.436 billion in 2023, KRW 53.069 billion in 2024, and KRW 43.636 billion in 2025.

On the profit side, the company posted an operating loss of KRW 2.360 billion in 2022 (operating margin -2.9%), swung to an operating profit of KRW 1.459 billion in 2023 (margin 2.5%), then returned to an operating loss of KRW 1.311 billion in 2024 (margin -2.5%), before the loss widened to KRW 4.690 billion in 2025 (margin -10.7%).

Net income attributable to owners moved in the opposite direction from operating profit in some years — KRW -2.833 billion in 2022, +KRW 0.920 billion in 2023, and +KRW 1.417 billion in 2024 — suggesting non-operating items played a role. Net loss attributable to owners was KRW 0.783 billion in 2025.

On a quarterly basis, Q2 2025 revenue was KRW 11.328 billion with an operating loss of KRW 0.338 billion, yet net income attributable to owners was a large KRW 2.162 billion in profit, while losses widened in Q3 (revenue KRW 11.427 billion, operating loss KRW 0.635 billion, net loss KRW 0.205 billion) and especially Q4 (revenue KRW 9.782 billion, operating loss KRW 3.289 billion, net loss KRW 2.845 billion).

Subsequently, Q1 2026 (revenue KRW 10.341 billion, operating profit KRW 0.345 billion, net income KRW 0.019 billion) and Q2 2026 (revenue KRW 11.063 billion, operating profit KRW 0.499 billion, net loss KRW 0.783 billion) delivered two consecutive quarters of operating profit, though Q2's net loss despite the operating profit shows non-operating factors continuing to weigh on the bottom line.

Over the trailing four quarters (Q3 2025 through Q2 2026), the cumulative net loss attributable to owners reached roughly KRW 3.814 billion, meaning the company remains in a net-loss position on a rolling annual basis.

On the balance sheet, the debt ratio steadily declined from 41.0% in 2022 to 30.2% in 2023, 21.2% in 2024 and 12.6% in 2025, while equity attributable to owners rose from KRW 69.762 billion in 2022 to KRW 94.978 billion in 2025, indicating improving financial stability even as top-line scale contracted.

The public-sector wireless communication and systems-integration market that Polaris AI operates in is heavily influenced by the budgeting and procurement schedules of government agencies such as police, fire authorities and defense, making annual revenue more cyclical than typical private-sector IT services.

The company has built a track record on multiple public projects, including the police agency's integrated 112 reporting system, disaster-safety communication networks, and defense equipment procurement.

At the same time, as generative AI adoption spreads across corporations, public agencies and financial institutions, the company has pursued collaborations with large cloud and LLM providers—such as the Naver Cloud MSP agreement—to upgrade existing public and financial systems with AI.

Comparable companies such as Asiana IDT, LG CNS, Samsung SDS and Datasolution are considerably larger in revenue scale and group infrastructure, placing them in a highly competitive segment of the public and financial systems-integration market.

Rather than competing head-on with these larger players, Polaris AI appears to be operating in a niche combining its accumulated references in public wireless communication and disaster safety with Power Voice's voice AI technology.

Joining the Polaris Office Group has enabled some technology sharing within the group through the AI convergence research institute, but how much this group synergy will translate into actual revenue and profitability improvement remains a work in progress.

Building on the July 2025 MSP agreement with Naver Cloud, the company has stated a goal of expanding HyperCLOVA X-based system upgrade services into the financial and public sectors.

Having restructured toward an IT/AI-centered business by fully divesting its fashion business (BK Innovation) in December 2024, one-off gains or losses tied to non-core asset disposals are expected to diminish going forward.

The return to operating profit in both Q1 and Q2 2026 could reflect improved cost structure or the impact of new contracts, but two quarters are not enough to confirm a durable trend, and second-half results will need to be watched to see if it continues.

The 5-for-1 reverse stock split, raising par value from KRW 500 to KRW 2,500 as resolved at the March 2026 shareholders' meeting, was completed with new share listing on April 29, 2026; this is a technical measure that resets outstanding shares and per-share metrics, with limited direct impact on business fundamentals.

At the group level, potential links to Polaris Office's generative AI application technology and affiliate Polaris AI Pharma's pharmaceutical and biotech data business have been mentioned, though the specific timing or scale of any revenue contribution has not yet been formally disclosed.

Given the nature of public-sector procurement, revenue recognition may concentrate around second-half budget execution periods, making new contract disclosures or renewals from the third quarter onward a key point to watch.