LG CNS Co. has developed a Korean-focused artificial intelligence model through its collaboration with Canadian startup Cohere Inc., as the South Korean technology services provider seeks to establish itself in the competitive domestic AI market.
The 7 billion parameter model represents part of a broader March partnership between LG CNS and the Toronto-based AI company, where the Korean firm plans to customize Cohere’s enterprise AI platform for local businesses. The companies are targeting financial services and public sector clients with what they describe as more secure and cost-effective alternatives to larger global models.
Cohere, valued at approximately $5.5 billion, has attracted backing from technology giants including Nvidia Corp., Oracle Corp. and Cisco Systems Inc. The partnership marks the Canadian company’s first major enterprise AI collaboration in South Korea, according to industry sources.
LG CNS faces intensifying competition in Korea’s AI sector. The company’s parent LG Group has been competing with Naver Corp.’s HyperCLOVA X through its own EXAONE models, which recently expanded to include reasoning capabilities designed to challenge OpenAI and China’s DeepSeek.
The financial benefits of the smaller parameter model remain unclear. While LG CNS claims faster processing speeds and reduced operating costs compared to larger systems, the company has not disclosed pricing details or specific performance metrics that would allow independent verification of these advantages.
LG CNS officials indicated they plan to explore opportunities in global agentic AI markets beyond the domestic focus, though the timeline and investment requirements for such expansion were not specified. The announcement comes as Korean technology companies increasingly seek partnerships with foreign AI developers to compete against established players in enterprise artificial intelligence services.
