Upstage Gears Up for “Trillion-Won IPO” -Poised to Become Korea’s First Generative AI Startup to Go Public

Upstage, a leading Korean generative AI company founded by CEO Sung-hoon Kim, is preparing for a blockbuster stock market debut valued in the trillions of won. According to industry sources, the company recently sent requests for proposals (RFPs) to major securities firms — including Korea Investment & Securities, NH Investment & Securities, and Mirae Asset Securities — to begin the process of selecting IPO underwriters.

Upstage aims to finalize its underwriter selection by the end of this year and submit its preliminary listing application in the second half of 2026, targeting a KOSDAQ listing in early 2026. If successful, it will become the first generative AI startup in Korea to go public.

“Solar PRO2” Driving Growth - Valuation Expected Between 2 to 3 Trillion Won

In its most recent funding round in August, Upstage was valued at approximately 790 billion won, the highest among Korean AI startups. Through the upcoming IPO, the company is reportedly seeking a valuation between 2 trillion and 3 trillion won.

An industry insider noted, “Upstage has already become the central player in Korea’s generative AI ecosystem. Given the strong investor interest in AI and the recent recovery in the capital markets, achieving a trillion-won valuation seems realistic.”

$300 Million Pre-IPO Round in the Works

Alongside its IPO, Upstage is also preparing a pre-IPO round targeting $300 million (approx. 430 billion won) from global institutional investors — a substantial increase from its current cumulative funding of around 200 billion won.

The funds will be used to strengthen Upstage’s global generative AI business, cloud infrastructure, marketing, and international partnerships to boost corporate value ahead of listing.

“National AI Team” Status - LLM Leadership Proven

Founded in 2020, Upstage has emerged as a frontier leader in large language models (LLMs) with its flagship “Solar PRO2”, a model with 31 billion parameters.

In July, global benchmarking organization Artificial Analysis ranked Solar PRO2 among the top 10 frontier LLMs worldwide — the only Korean model to make the list.

Earlier this year, Upstage was also selected by the Ministry of Science and ICT as one of Korea’s “National AI Five Teams”, receiving government-backed support for research infrastructure and international collaboration.

“A Turning Point for Korean Generative AI”

Industry experts view Upstage’s IPO as a watershed moment for Korea’s AI industry, signaling the emergence of a domestic AI unicorn capable of standing alongside global tech giants.

The company’s investor lineup already includes SBVA, Company K Partners, Korea Development Bank, Mirae Asset Venture Investment, Premier Partners, Intervest, and SK Networks.

“Upstage’s listing represents not just a business milestone, but a symbolic moment for Korean AI technology,” said one AI industry analyst. “It could mark the dawn of the ‘Korean OpenAI era,’ showcasing that domestic innovation can compete on a global scale.”

By Ju-baek Shinㅣ jbshin@kmjournal.net