Korean AI Innovation: Crowdworks Develops Localized Version of DeepSeek's R1 Language Model

In a significant move to expand the accessibility of advanced AI technology in the Korean market, Crowdworks (355390) has announced the development of a Korean-language version of DeepSeek's R1 large language model (LLM). The company plans to introduce this localized AI solution to the domestic market within the first half of 2025, particularly targeting small and medium-sized enterprises seeking cost-effective AI implementation.

Crowdworks unveils a localized version of DeepSeek's platform, enhancing accessibility with a vibrant and modern logo.

Strategic Partnership Drives Development

Crowdworks has formalized a strategic collaboration agreement with Japanese AI firm "AI CHO" through its Japanese subsidiary, CWJ. This partnership leverages AI CHO's expertise, having recently completed the Japanese localization of the R1 model. Industry sources confirmed on March 21 that Crowdworks is actively adapting AI CHO's Japanese version into a fully optimized Korean language variant.

"We have recently signed a contract with a Japanese corporation and are in the process of starting development," a Crowdworks representative stated. "We plan to launch the Korean version within the first half of this year and begin full-scale sales targeting domestic companies."

Lightweight Solution with Competitive Performance

The decision to develop a Korean version of R1 stems from the model's advantageous performance-to-resource ratio. Unlike more resource-intensive alternatives, R1 offers substantial capabilities in a lightweight package, making it particularly attractive for organizations with budget constraints or limited computational infrastructure.

When completed, the Korean R1 is expected to demonstrate significantly enhanced Korean language recognition capabilities compared to existing solutions. This improvement should facilitate broader adoption across various sectors, from corporate environments to individual users. Additionally, the localized model will more effectively integrate Korean data, evolving to better serve domestic user requirements.

Addressing Market Challenges

Despite R1's technical merits, Crowdworks faces certain market challenges. Currently, major Korean corporations and public institutions have implemented restrictions on DeepSeek LLM usage, primarily due to security and reliability concerns. To overcome these obstacles, Crowdworks plans to initially focus on medium and small-sized businesses, establishing real-world use cases that demonstrate the model's stability and performance.

Building on Crowdwork's Established Expertise

Founded in April 2017, Crowdworks has established itself as a specialist in LLM data processing. The company has contributed to developing training datasets for prominent Korean language models, including Naver's HyperClova X and LG's ExaOne. Recently, Crowdworks has expanded its focus to include performance evaluation and implementation solutions that facilitate smooth AI adoption by enterprises.

The company has also recently launched "Alpy," a comprehensive "Agentic AI" solution, reflecting its commitment to advancing practical AI applications in the Korean market. This new R1 localization initiative represents another step in Crowdworks' strategy to deliver accessible, high-performance AI technologies to Korean businesses of all sizes.

As AI adoption continues to accelerate across industries, Crowdworks' localization efforts highlight the growing importance of language-specific AI solutions tailored to regional markets and business needs.