LG to Introduce AI-Based Korean Stock Market Prediction Service with Koscom

LG AI Research is partnering with Koscom, a capital market IT solutions specialist, to launch an AI-driven service predicting the Korean stock market. The collaboration aims to provide investors with "explainable" insights, moving beyond simple predictions to offer the reasoning behind them.

The service will leverage LG's specialized AI agent, "EXAONE Business Intelligence" (EXAONE BI), which is designed for financial data analysis. By integrating Koscom's extensive financial data, including trading information and corporate disclosures, the AI will analyze approximately 2,500 listed Korean stocks daily. The output will include a "forecast score" for individual stocks over the next four weeks, along with detailed commentary explaining the AI's decision-making process.

This initiative builds on LG AI Research's prior success in developing AI-powered financial services. The company previously collaborated with the London Stock Exchange Group (LSEG) to launch a US stock market analysis service. That service received positive feedback for addressing the "black box" problem common in AI, offering clear explanations for its predictions.

"In the stock market, the ability of AI to explain why it presents certain results is as important as the accuracy of its predictions," said Im Woo-hyung, co-head of LG AI Research. He expressed confidence that LG's AI technology will provide reliable information to both institutional and individual investors, contributing to innovation in financial AI services.

The partnership comes at a time of increased interest in South Korean stocks from international investors and a growing demand for AI-driven market analysis due to heightened financial market volatility. The service will be distributed through Koscom's domestic customer base and LSEG's global channels. Both companies are committed to continuously evaluating the service's quality, particularly the accuracy of the AI's reasoning and the comprehensiveness of its commentary, to minimize potential AI "hallucinations."

“

In the stock market, the ability of AI to explain why it presents certain results is as important as the accuracy of its predictions.