Korean startup wrtn is poised to surpass $100 million in yearly recurring revenue, driven by a surge in AI entertainment amid a widespread loneliness crisis.

South Korea's AI Surge and the Rise of wrtn

Fueled by an unprecedented semiconductor boom and a government-led initiative known as the “AI Squid Game” to foster homegrown AI models, South Korea is cultivating a fresh wave of artificial intelligence startups. Among them is wrtn, an interactive storytelling platform that now has its sights set on expanding into the United States.

Launched in 2021 as a chatbot aggregator, wrtn has rapidly evolved and is projected to exceed $100 million in annual recurring revenue this year, reflecting the growing popularity of AI-driven entertainment among consumers.

Innovative Storytelling with wrtn

Operating under the names Crack in Korea and Kyarapu in Japan, wrtn delivers an AI-powered platform where users can craft and influence stories in real time. Dong-jae Lee, the company’s chief product officer, likens the AI’s role to that of a dungeon master in tabletop role-playing games: the AI adapts the narrative based on user decisions, creating a personalized experience.

“It’s as if you have your own dedicated writer,” Lee explains. “You step into a pre-designed world as a character, make your own choices, and the AI ‘ghostwriter’ instantly weaves the story around you. It’s a blend of interactive storytelling and gaming.”

Currently, wrtn boasts over five million monthly active users across South Korea and Japan. The company is preparing to expand into the U.S. by mid-2026 and is considering a public offering by 2028.

South Korea’s Unique Position in Global AI

South Korea is distinguishing itself as a significant player in the international AI arena, which remains largely dominated by the U.S. and China. The nation’s expertise goes beyond cultural influence—its semiconductor exports soared to $173.4 billion in 2025, fueled by the demand for advanced memory chips essential for AI processors. The government’s “AI Squid Game” competition is pushing the development of sovereign AI models, though some major tech firms like Kakao and Naver have withdrawn from the race due to intense competition.

The Growing Challenge of Social Isolation

Martell Hardenburg, a partner at Antler and investor in wrtn, attributes South Korea’s AI momentum to its strong pool of tech talent and robust industrial foundation. He also points to demographic shifts—such as a declining birthrate and an aging society—that are driving businesses to automate more processes.

Hardenburg was also motivated by a more somber trend: increasing social isolation and the search for connection. “There’s definitely a loneliness epidemic,” he observes. “How might AI address this issue?”

According to a Harvard Business Review study, the primary uses for generative AI tools are therapy and companionship, surpassing productivity-related applications. (AI companion apps have also attracted scrutiny from regulators in both the U.S. and China, with the latter considering regulations that would require human intervention in extreme cases.)

The Future of AI Entertainment in Asia

Despite these challenges, Hardenburg believes that Asia—especially South Korea—will become a leading hub for AI-powered entertainment and digital companionship. “We’re confident that a groundbreaking company will emerge from Asia, given its rich history in gaming, social platforms, and content creation.”

This article was first published on Fortune.com.