IGAWorks Separates Tech and Agency Businesses Through Spin-Off

Transformation into an AI Data Tech Company

IGAWorks announced on March 30 that it has completed a spin-off separating its advertising agency business and data technology business and has finalized its transformation into an artificial intelligence (AI) data tech company.

Through this restructuring, the company aims to establish itself as an open data platform independent of any specific agency and plans to build a scalable AI data ecosystem that encompasses both domestic and international advertisers and agencies.

Following the spin-off, the surviving entity, IGAWorks, will become an AI data platform company. The newly established corporation will be reorganized as an "AI-native agency" combining advertising and commerce capabilities, and will pursue new growth strategies centered on AI-based planning and operational models. The spin-off date is set for May 1, and starting from that point, the company also plans to actively pursue an initial public offering (IPO), including the recently introduced AI listing track.

Concurrently with the spin-off, IGAWorks has also streamlined unprofitable and high-risk businesses. The company has exited its media rep business and strategically downsized businesses with large revenue but low margins, proactively improving its financial structure. Last year, on a consolidated basis, sales totaled 74.1 billion won, a 38.9% decrease from the previous year, which the company explained was due to the intentional downsizing of low-margin, high-risk operations. Of the total sales decline of approximately 47.1 billion won, around 46 billion won was attributable to these business reductions, while the margin decline during the same period was only about 2.8 billion won.

After the spin-off, the operating profit of the surviving entity was approximately 5.9 billion won in 2023, about 4.7 billion won in 2024, and around 1.3 billion won in 2025, maintaining a profitable trend for three consecutive years. This year, operating profit is expected to recover to about 3.7 billion won. The company stated, "Previously, the platform’s inherent profitability was obscured by the volatile results of the agency business, but this spin-off will clarify the fundamental profit structure of the platform business."

Ku Seong Ma, CEO of IGAWorks, said, "This restructuring was not a choice to maintain sales volume, but a strategic decision to create a business structure suited for the AI era," adding, "We are now ready to be evaluated based on our fundamental value as a data tech company."

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