[Edaily, Reporter Lee So-Hyun ] FLITTO Inc.(300080), a company specializing in artificial intelligence (AI) data and solutions, has signed a contract worth approximately 3.9 billion won with a global semiconductor company to build an AI real-time translation and interpretation system.

FLITTO Inc. announced in a regulatory filing on the 12th that it had signed a supply contract with a global semiconductor company for the “AI-Based Real-Time Translation and Interpretation System Development Project.” The contract value is 3.87 billion won, which represents 10.76% of the company’s consolidated revenue of 35.97964 billion won as of the end of last year.

The contract period runs from the 8th to December 30. The counterparty was disclosed as a global semiconductor company, but the specific company name was not disclosed at the counterparty’s request to protect trade secrets. The disclosure retention period extends until December 30.

FLITTO Inc. stated, “The key details of the contract have been withheld due to the need to maintain business confidentiality,” adding, “Investors should invest prudently, taking into account the possibility of changes or termination of the contract.”

This contract involves a project in which FLITTO Inc. provides AI translation and interpretation solutions and system integration (SI) services using its own production methods. The contract amount is the sum of the solution license fee and labor costs associated with providing SI services, excluding value-added tax.

For the solution portion, 100% of the payment will be made upon completion of setup. For the SI portion, payment will be made as a 50% down payment followed by a 50% balance.

This contract aligns with FLITTO Inc.’s ongoing expansion of its AI translation and interpretation solution business. FLITTO Inc. recently rebranded its AI translation and interpretation solutions under the unified brand “Vogl” and is broadening its application areas to include “Vogl Stage” for conferences and events and “Vogl Zone” for retail stores and information desks. This project with Daesang, a global semiconductor company, is also seen as reflecting the growing demand for real-time multilingual communication in industrial settings.

FLITTO Inc. previously reported that revenue from its AI translation and interpretation solutions segment increased significantly in the first half of this year compared to the same period last year. In the second quarter, the company returned to profitability after posting an operating loss in the previous quarter.

Meanwhile, this 3.87 billion won contract to build an AI translation and interpretation system is a new order secured following the company’s announcement regarding the reduction of a data supply contract with a global IT firm.

Previously, FLITTO Inc. had revised downward the value of its AI data supply contract. After the market closed on the 6th, the company lowered the value of the “Data Supply Contract for the Research and Development of AI-Based Language Models” from the original 8.9 billion won to 4.0 billion won. The contract value had initially been 600 million won, increased to 3.9 billion won in April and 8.9 billion won in June, before being adjusted back to 4.0 billion won.