Iteyes

ITeyes was founded in 2012 with the aim of becoming a 'financial IT compliance specialist group' and operates as a finance-focused IT solutions provider.

Its core business centers on developing, building, and operating information systems for specialized financial IT areas such as credit rating, market risk management, asset management, and over-the-counter derivatives, while its self-developed cloud-based digital platform, GURMWI™, extends AI, big data, cloud, and blockchain technologies into other industries.

The company's segments are broadly divided into Finance core solution and AI/Bigdata solution, and revenue declines in both segments were a key driver of the 2025 earnings deterioration.

Its client base spans banks, securities firms, pension funds, and public institutions, with references including system builds and solution supply for KDB Industrial Bank of Korea, IBK Industrial Bank of Korea, Shinhan Life, and Korea Gas Corporation.

More recently, the company has secured build-and-operate references across all three core MyData domains—finance, healthcare, and energy—positioning itself, by its own account, as the only domestic data solutions firm to have executed projects in all three areas simultaneously.

It has also designated the FASTO security token offering (STO) trading solution, developed in cooperation with partners such as Eugene Investment & Securities, and an AI bio-health (precision medicine) platform built on medical MyData as future growth pillars, pursuing a shift from a system-integration-centered business toward a platform service operator.

Competitively, the company coexists with large systems integrators and specialized infrastructure institutions such as the Korea Financial Security Institute and Koscom. Management has stated that its MyData references are expected to serve as a competitive advantage in future project bids.

In scale, the company operates as a small-to-mid-cap KOSDAQ-listed IT services firm with a relatively high ratio of new-business investment to revenue.

ITeyes' annual revenue rose steadily from KRW 54.57bn in 2022 to KRW 74.95bn in 2023 and KRW 79.58bn in 2024, but declined 1.9% year-on-year to KRW 78.05bn in 2025, breaking the growth trend.

On profitability, the company posted operating margins of -20.8% in 2022 and -8.5% in 2023 before turning profitable in 2024 with operating profit of KRW 166.6mn (a 0.2% margin), only to swing back to an operating loss of KRW 5.39bn (a -6.9% margin) in 2025.

Net income attributable to owners followed the same pattern, moving from a profit of KRW 1.43bn in 2024 to a loss of KRW 9.52bn in 2025.

On a quarterly basis, Q2 2025 posted a modest operating profit of KRW 314mn yet still recorded a net loss attributable to owners of KRW 3.19bn, suggesting non-operating factors played a significant role; Q3 2025 narrowed the loss with revenue of KRW 20.06bn and an operating loss of KRW 296mn, but Q4 2025 saw revenue fall sharply to KRW 16.21bn while the operating loss widened to KRW 4.32bn, driving the annual deterioration.

Losses continued into 2026, with Q1 revenue of KRW 18.70bn, an operating loss of KRW 2.77bn, and a net loss of KRW 2.75bn, followed by Q2 revenue of KRW 12.93bn, an operating loss of KRW 3.00bn, and a net loss of KRW 2.07bn, showing simultaneous revenue contraction and persistent losses.

Cash flow also deteriorated in tandem, with operating cash flow of positive KRW 9.16bn in 2024 reversing to negative KRW 7.98bn in 2025.

Company and industry commentary attribute the profitability decline primarily to upfront investment costs tied to new businesses such as VERAI, AI-based financial service support, a medical MyData application, and the FASTO launch.

Korea's financial IT and public systems integration market continues to see structural demand from the expansion of the MyData system, cloud migration, and AI adoption, but individual companies' quarterly results tend to fluctuate significantly depending on budget allocation timing and project award schedules.

Following its 2025 announcement of transmission procedures and technical guidelines for MyData across all sectors, the government has been expanding the designation of sector-specific relay institutions and related infrastructure budgets, with expectations that the MyData system will extend into telecommunications, real estate, retail, and education.

ITeyes is described as the only domestic company to have secured build-and-operate references across all three core MyData domains—finance, healthcare, and energy—which is seen as giving it a reference advantage in future relay-institution bids for new sectors.

However, such projects are heavily dependent on external variables such as public budget execution timing and standards/security certification procedures, causing revenue recognition to be unevenly distributed across quarters.

Competitively, large systems integrators coexist with specialized infrastructure institutions such as Koscom and the Korea Financial Security Institute, and ITeyes, as a smaller specialized player, positions its accumulated expertise in specific domains—financial risk management and MyData relay—as its competitive edge.

The security token offering (STO) market remains at an early stage of institutional development, with the KDX consortium in which ITeyes participates having obtained preliminary approval for an over-the-counter exchange, leaving further procedural steps before commercialization.

Overall, while the industry itself is viewed as having growth potential, the timing and extent of monetization for individual companies can vary considerably depending on project-specific order intake and revenue recognition structures.

Building on its large July order intake, the company has formally guided toward an earnings improvement in the second half of 2026.

CEO Lee Sung-nam stated that from August onward, meaningful revenue generation, stable cash flow, and platform business results would become visible together, adding that the company expects to achieve record profit in 2027 on this basis.

The energy MyData relay service project underway with the Korea Energy Agency aims to complete a platform that transmits and relays electricity and gas data in accordance with MyData standard API specifications by the end of this year, making the year-end launch a key point to verify going forward.

The company said it plans to nurture the MyData platform as a separate business line and pursue a recurring-revenue model by turning its relay systems into standardized solutions.

It is also advancing portfolio upgrades around three core growth platforms—a digital finance (STO) platform, an energy trading platform, and an AI bio-health (precision medicine) platform—with the progression from preliminary to full approval for the STO over-the-counter exchange via the KDX consortium, and the commercialization progress of the FASTO platform, likely to serve as gauges of new-business execution.

The company has also pursued external financing, including convertible bond issuance, to fund new-business expansion.

These targets and expectations are based on company statements, however, and the actual timing of revenue recognition and profitability improvement will need to be confirmed through future quarterly disclosures.