Used goods platform Joongonara is accelerating efforts to enhance transaction reliability through artificial intelligence (AI). The platform is improving its competitive edge by implementing systems that analyze product conditions, suggest appropriate prices, and detect unusual transactions. This AI-driven innovation has also led to improved financial performance, with Joongonara recording its first quarterly operating profit since its inception in the first quarter of this year.
According to industry sources on July 17, Joongonara is focusing on enhancing transaction trust through AI. A notable example is the 'AI Self-Inspection' service, launched in November 2024. When sellers upload product photos, AI analyzes the images to identify scratches, stains, and signs of use, automatically assessing the product's condition.
Previously, the subjective nature of product condition descriptions varied by seller, making it difficult for buyers to gauge actual quality. The AI Self-Inspection aims to reduce this subjectivity and provide objective information about product conditions, thereby increasing transaction trust.
Recently, Joongonara added a 'Price Suggestion' feature to the self-inspection service. When sellers upload product photos, AI analyzes the condition and suggests a grade along with an appropriate selling price. This allows sellers to set reasonable prices without having to search for market rates, while buyers can more objectively assess whether the price aligns with the product's condition. The company has also secured a patent for this AI technology, enhancing its competitive edge.
Last year, Joongonara introduced an AI product registration feature. Sellers can simply upload product images, and AI analyzes the photos to automatically generate necessary information such as product name, category, and detailed description. Sellers can then review and make minor adjustments before completing the product registration. Since implementing this feature, the time required for product registration has been reduced by approximately 15%, improving seller convenience and lowering barriers to entry for transactions.
AI utilization is also expanding to build a safety net for transactions. Joongonara recently signed a partnership with Seoul Evaluation Information to develop an AI-based transaction risk prediction model. The goal is for AI to analyze transaction data to detect unusual patterns early and proactively block potentially fraudulent transactions. The company plans to enhance transaction safety by improving seller verification systems and the fraud detection system (FDS).
Previously, the response was primarily reactive, addressing reports after they were submitted. Now, the structure is shifting to allow AI to detect warning signs in advance and respond proactively.
Joongonara's AI innovations are translating into business success. From January to March this year, the company exceeded the break-even point for three consecutive months, achieving its first quarterly operating profit. Revenue growth was also significant, with first-quarter sales increasing by 42% compared to the same period last year, and payment processing revenue surging by 218%. The improvements in efficiency, transaction activation, and user trust through AI have been credited for this performance boost.
Joongonara is accelerating its AI transformation (AX) across the organization to enhance transaction safety and service quality. Last month, the company appointed Kong Ja-yun as Chief Technology Officer (CTO) to strengthen its AI capabilities. Kong, an expert who has led large-scale platform development and operations at LG CNS and SK Planet, joined Joongonara last year and has been overseeing the web development team.
The company has also established dedicated teams for AX and data within its internal technology organization. These teams are responsible for applying AI technology across services and operations while enhancing data-driven decision-making processes. The strategy aims to integrate AI not just as a functional development but throughout the platform, including product registration, transaction safety, and service operations.
Choi In-wook, CEO of Joongonara, stated, "We will continue to expand various technological and institutional foundations to ensure a trustworthy used goods transaction environment."
* This article has been translated by AI.
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