Socar Reports Strong 2022 Results, Driven by AI-Based Operations.

Socar (KRX: 40355) announced that its 2022 revenue increased 37.6% to KRW 397.6 billion from KRW 289 billion in 2021.

The company also reported its first annual operating profit since its inception in 2011, up to KRW 9.4 billion in 2022 from a loss of 20.9 billion the previous year.

This was due to the implementation of AI-based business operations, which streamlined processes and increased revenue per vehicle.

In the fourth quarter of last year, sales reached KRW 121.4 billion, up 38.8% from the same period in 2021.

The operating profit was KRW 4.9 billion, moving the company into the black from a year earlier loss.

Socar attributes its success to using AI in demand assessment, vehicle operation, and risk management.

The company’s dynamic vehicle provisioning, pricing, and reservation optimization programs have increased revenue per vehicle.

In contrast, AI automation technology has optimized spending by tracking unreported accidents and streamlining vehicle maintenance processes.

In 2023, Socar plans to continue to focus on solidifying its revenue structure by combining mobility data with its industry-leading service accessibility and various user-centric services.

“We expect changes in macroeconomic factors, such as a decrease in vehicle purchases due to interest rate hikes, an increase in single-person households with no children, and an increase in outdoor activities, to have a positive impact on the carsharing market. We will continue to improve our performance this year by enhancing customer value and building a stable profit structure with our AI technology leading the domestic market.”Park Jae-wook, CEO of Socar, said,

The company will launch a mobility platform strategy this year that combines various pre- and post-carsharing experiences.

Revenue growth will be driven by offering KTX reservations, hotel and resort accommodations, activity products such as amusement parks and museums, and car-sharing services.