NCSOFT Expands AI Initiatives, Enters Fashion Industry with Hyungji

NCSOFT Corp., a prominent South Korean game developer, is broadening its artificial intelligence (AI) efforts beyond the gaming sector by entering the fashion industry. On March 15, 2024, the company’s AI subsidiary, NC AI, announced a memorandum of understanding with Fashion Group Hyungji Co., one of Korea’s leading apparel manufacturers. This partnership aims to implement NC AI’s fashion-oriented platform, VARCO Art Fashion, across Hyungji’s design, sales, and marketing operations.

The VARCO Art Fashion platform utilizes generative AI, trained on extensive industry language and design data, to produce product drafts, model images, and marketing visuals. This technology allows for fabric modifications, 2D-to-3D design transformations, virtual fitting, and background synthesis. Such features enable brands to preview products before they enter production, effectively streamlining the creative process.

Since its spin-off from NCSOFT earlier in 2023, NC AI has sought to expand its technology applications beyond gaming. The unit refines its AI offerings through experiences gained in video game development, including non-player character dialogue, image generation, and voice synthesis. NC AI has already partnered with domestic brands such as F&F Co., which manages popular labels like MLB and Discovery Expedition, as well as Shinsegae International Inc.

In addition to its existing collaborations, NC AI is currently negotiating with approximately ten more companies to introduce its AI solutions. “The partnership will accelerate the fashion industry’s AI transformation and help strengthen its global competitiveness,” stated Lee Joon-soo, Chief Product Officer of NC AI.

NCSOFT is actively enhancing its AI initiatives across different business domains. The establishment of NC AI aligns with the company’s strategy to develop AI technologies into global intellectual property. This spinoff is one of four new units created to oversee AI advancements for various applications, including gaming.

In August 2023, NCSOFT announced plans to launch a mobile casual games division, focusing on new titles that leverage AI and data science to improve its competitive edge in global markets. That same month, NC AI gained recognition as one of five technology firms selected to lead Korea’s flagship sovereign AI initiative. This initiative aims to develop large-scale language models independent of major US tech companies like OpenAI, the creator of ChatGPT.

As NCSOFT and its subsidiaries continue to innovate, the company’s expansion into the fashion industry signifies a significant shift in how technology can enhance creative processes across diverse sectors.