RaonPeople "Investment Attraction for New Businesses Including Twin Reality Implementation and Metaverse"

[Asia Economy Reporter Hyunseok Yoo] Raonpeople will receive an investment of 30 billion KRW in operating and facility funds from institutions and funds based on new businesses such as AI convergence metaverse and digital twin.

On the 28th, AI specialized company Raonpeople announced through a disclosure yesterday that it will issue 30 billion KRW worth of anonymous, unsecured private convertible bonds. A total of 30 billion KRW will be participated by four institutions: 9 billion KRW from Kiwoom AI New Technology Business Investment Association, 4 billion KRW from Kiwoom Securities, and 17 billion KRW from Rhinos and Suseong Asset Management. The issue price is 17,581 KRW. There is no adjustment to the conversion price due to market price decline, the nominal interest rate and maturity interest rate are both 0%, and the maturity is October 29, 2026, for 5 years.

This investment is interpreted as a positive evaluation of Raonpeople's AI convergence technology capabilities, as it participates in future strategic AI businesses including the government’s Digital New Deal policy and applies advanced AI technology in fields ranging from defense to agriculture and livestock industries. It is also analyzed to be due to expectations for the expansion of core businesses such as automobile exterior inspection, semiconductor and secondary battery inspection businesses, and new domestic and overseas businesses.

Raonpeople plans to use 15 billion KRW of the raised funds for research and development expenses to build an intelligent government through the Data Dam project, establish the next-generation intelligent transportation system (C-ITS), implement the digital twin business that realizes a twin real world in the metaverse environment, and supply AI smart farming solutions to local governments. It will also be used for office relocation and facility investment. The remaining 15 billion KRW will be invested as operating funds for research and development (R&D), including strengthening global sales capabilities, patent applications, new technology development, materials and logistics costs, and training of development personnel.

A Raonpeople official said, “This investment reflects investors’ expectations and willingness to invest due to the rapid growth of AI solution and sensor businesses and the restructuring of future businesses such as metaverse and ITS. As of the end of the half-year, the company holds 51.1 billion KRW in cash and financial assets, and including this investment, it will be able to mobilize abundant funds exceeding 81.1 billion KRW,” he explained.

The official added, “Currently, the order backlog also exceeds 17 billion KRW, showing signs of improved performance from the second half. We will strive to increase competitiveness in core businesses to generate stable sales, and grow into a solid company by securing various businesses such as golf sensors as cash cows.”

This content was produced with the assistance of AI translation services.