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Game Developer NCSOFT Expands AI Business Into Korean Apparel Industry

The company's artificial intelligence unit seeks new revenue streams as gaming market growth stalls
South Korea
n 036570.KO Mid and Small Cap 2000 Games 75 Tech 350 Entertainment 100
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NCSOFT Corp.’s AI subsidiary has struck a partnership with a Korean apparel manufacturer to deploy machine-learning tools in fashion design and marketing, the latest example of game developers seeking opportunities beyond their core business.

NC AI said Wednesday it signed a memorandum of understanding with Fashion Group Hyungji Co. to implement its VARCO Art Fashion platform across the apparel maker’s operations. The system uses generative AI trained on industry data to create product drafts, model photographs, and marketing visuals, while enabling fabric modifications, two-dimensional to three-dimensional design conversion, and virtual fitting capabilities.

Fashion Group Hyungji, which operates more than 20 clothing brands in South Korea, will integrate the technology into its design, sales, and marketing departments. The company, established in 1998, focuses primarily on women’s casual wear targeting consumers aged 30 to 50.

NC AI, spun off from NCSOFT earlier this year, has already supplied its VARCO solutions to domestic brands including F&F Co. and Shinsegae International Inc., and is negotiating with approximately 10 additional companies.

The expansion reflects a broader trend among Korean game studios repositioning themselves as AI technology providers as the domestic gaming market cools and development costs climb.

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