South Korean AI Startup Wrtn Accelerates Global Expansion with US Market Entry Plans and 2028 IPO Target

Wrtn Technologies was established in 2021 in Seoul, South Korea, by founders Youngjoon Yoo, Seyoung Lee, Sungwon Jae, and Dongjae Lee [1][2]. The company operates as an artificial intelligence and natural language processing solutions provider, with a strategic focus on text-based entertainment applications. Wrtn has attracted significant investor interest, raising approximately $104 million in total funding across multiple investment rounds. The most substantial round, a Series B financing of 108 billion KRW (approximately $73 million), was completed in March 2025 [1][2]. The company has announced plans to pursue an additional funding round in 2026 to support its international expansion initiatives.

The February 2026 announcement regarding US market entry and IPO timing reflects the company’s transition from a regional player to a potential global competitor in the AI entertainment sector [1]. The strategic timing follows successful market validation in South Korea and Japan, providing evidence of cross-cultural product viability and operational execution capability.

Wrtn has demonstrated consistent revenue growth since launching its AI entertainment service in late 2024 in South Korea, followed by a Japanese market entry in mid-2025. The company achieved $70 million in annualized revenue by the end of 2025, establishing a substantial baseline for continued expansion [1]. For 2026, Wrtn projects exceeding $100 million in annualized revenue, representing year-over-year growth exceeding 43% [1].

The company’s financial projections extend significantly further, with management targeting $700 million in annualized revenue by the end of 2027 [1]. Achieving this target would represent approximately sevenfold growth over two years, requiring sustained execution across multiple dimensions including user acquisition, conversion optimization, and international market development. The ambitious nature of these projections suggests confidence derived from early market metrics but also highlights the substantial growth requirements necessary to support potential IPO valuation expectations.

Wrtn’s flagship product operates under the brand name “Crack” in South Korea and “Kyarapu” in Japan, offering an interactive narrative entertainment platform that distinguishes itself fundamentally from competing AI companion services [1]. Unlike platforms such as Character.AI, which focus on maintaining persistent character relationships and ongoing conversational interactions, Wrtn has designed its service around narrative immersion where users become protagonists in evolving storylines.

The platform generates multiple content formats simultaneously, including novels, images, and audio, based on user choices and interactions in real-time [1]. This multi-modal content generation approach exceeds the text-only focus of many competitors, providing what the company characterizes as comprehensive storytelling experiences. The average user engagement of approximately two hours per day aligns with engagement patterns typically associated with major streaming platforms such as Netflix and YouTube, suggesting the service successfully captures meaningful entertainment time share [1].

A distinctive design element involves the ephemeral nature of characters within the platform, where characters can disappear or be replaced as the AI develops new storylines [1]. This intentional architectural decision aims to prevent emotional attachment dependency, positioning Wrtn’s approach as a response to criticism directed at companion-style chatbots regarding potential mental health impacts, particularly among younger users.

The AI entertainment market encompasses several notable competitors with varying strategic focuses and resource levels. Character.AI, founded in 2021 and headquartered in Menlo Park, California, has raised $193 million and achieved a $1 billion valuation, focusing primarily on AI companion chatbots [2]. The competitive dynamic shifted significantly in August 2024 when Google acquired Character.AI for a valuation exceeding $2.5 billion, providing the platform access to substantial resources and advanced AI research capabilities [2][6].

Inflection AI, established in 2022 in Palo Alto, has raised $1.3 billion and reached a $4 billion valuation, concentrating on personal AI assistants rather than entertainment-focused applications [2]. This funding disparity between Wrtn and well-capitalized competitors raises considerations regarding resource availability for sustained international expansion and marketing investment requirements.

Wrtn’s competitive advantages include its narrative-first product philosophy, which proactively addresses regulatory and mental health concerns affecting the companion chatbot segment; multi-modal content generation capabilities combining text, visual, and audio elements; proven cross-market execution demonstrated through successful Korean and Japanese launches; and strong retention metrics with paying user retention exceeding 70% [1]. However, the company faces challenges including limited brand recognition in Western markets, a funding gap compared to competitors, and the resource requirements associated with establishing US market presence.

The AI companion and entertainment sector faces increasing regulatory scrutiny across multiple jurisdictions, creating both compliance requirements and strategic positioning opportunities. Washington State has introduced legislation through HB2225 specifically targeting AI companion services, while Oregon has proposed companion-specific regulatory frameworks [2][7][9]. The European Union’s AI Act imposes obligations on AI entertainment services operating within its jurisdiction [2].

Wrtn’s narrative-centric product model may face different regulatory treatment than companion-focused services, though comprehensive AI regulation could affect operational requirements across the sector. Washington Governor Bob Ferguson has called for AI chatbot regulations amid mental health concerns, while Oregon lawmakers have proposed legislation addressing AI companions amid growing awareness of potential psychological impacts on users [2][7][9]. The company’s design philosophy, which intentionally prevents persistent character relationships, positions Wrtn as potentially addressing regulatory concerns proactively rather than reactively.

The planned June 2026 US market entry represents a critical milestone in Wrtn’s international expansion strategy [1]. The timing provides approximately 16 months of operational runway before potential IPO preparation activities intensify. The US market entry requires significant investment across several dimensions including marketing infrastructure development, localization adaptation for American audiences, customer support scaling, and compliance with varying state-level regulations.

Cultural adaptation represents a particular consideration, as user preferences and engagement patterns in the US market may differ from Korean and Japanese audiences where the product has demonstrated success. The competitive environment includes Character.AI’s enhanced resource position following Google acquisition, requiring Wrtn to differentiate effectively while competing for user attention in a crowded entertainment market.

The company has indicated potential listing locations in either South Korea or the United States, providing flexibility in IPO execution based on market conditions and valuation considerations [1]. The 2028 IPO timeline reflects realistic expectations for a growth-stage company, allowing additional revenue acceleration and market share development while maintaining optionality regarding listing venue.

Wrtn’s narrative-centric approach represents a deliberate strategic choice that addresses fundamental concerns affecting the AI companion market. By designing characters to evolve and disappear rather than maintaining persistent relationships, the company mitigates mental health dependency risks that have prompted regulatory attention and public concern. This architectural decision transforms a potential liability into a competitive advantage, positioning Wrtn as an alternative for users and regulators seeking entertainment AI without companion-style attachment concerns.

The platform’s real-time generation of text, images, and audio content simultaneously creates a more comprehensive entertainment experience than text-only competitors [1]. This multi-modal capability represents a higher barrier to competitive replication than conversational AI features, requiring substantial investment in generative AI infrastructure across multiple content domains. The integration of narrative structure with multi-modal generation creates experiential depth that simple chatbot interactions cannot replicate.

The reported paying user retention exceeding 70% significantly exceeds typical mobile application benchmarks and provides evidence of genuine user value perception [1]. Combined with average daily engagement of approximately two hours, these metrics suggest the service addresses meaningful entertainment needs rather than novelty-driven usage patterns. Sustaining these metrics during rapid international expansion represents a critical execution challenge.

The February 2026 announcement occurs during a dynamic period in the AI entertainment sector, following Character.AI’s acquisition by Google and increasing regulatory attention on AI companions [1][6]. This timing provides Wrtn an opportunity to establish narrative-focused positioning while competitors integrate following acquisition-related transitions and regulatory frameworks remain under development.

The transition from successful Asian market operations to US market entry involves significant execution uncertainty. Cultural adaptation requirements may prove more substantial than anticipated, marketing costs in the US market substantially exceed Asian market expenditure levels, and competitive response from well-resourced domestic players could accelerate [1][6]. The company must effectively communicate its narrative-focused value proposition to American audiences unfamiliar with the product category.

The projected trajectory from $70 million annualized revenue at end-2025 to $700 million by end-2027 requires maintaining approximately 600% annual growth over two consecutive years [1]. Historical analysis of high-growth technology companies suggests such acceleration rates frequently encounter execution challenges, market saturation effects, or competitive pressures that constrain actual performance relative to projections.

Character.AI’s integration with Google following its $2.5 billion acquisition provides access to resources and AI research capabilities that could accelerate feature development or enable narrative-focused product additions [6]. The competitive response timeline may compress Wrtn’s window for establishing US market presence before competitors respond to the narrative entertainment opportunity.

While Wrtn’s narrative-centric model may face different regulatory scrutiny than companion services, comprehensive AI regulation affecting the entertainment sector remains under development [2][7][9]. Compliance requirements across multiple jurisdictions with varying regulatory frameworks create operational complexity and potential cost implications.

Wrtn’s early entry into the narrative-focused AI entertainment segment provides establishment opportunity before competitors develop comparable offerings. The company’s demonstrated ability to generate revenue and retain users in multiple Asian markets provides validation supporting international expansion claims.

Growing regulatory scrutiny of AI companion services creates potential demand for alternatives positioned as addressing dependency concerns. Wrtn’s product architecture, which intentionally prevents persistent character relationships, aligns with regulatory priorities identified in proposed legislation across multiple states [2][7][9].

Achieving revenue targets would significantly enhance potential IPO valuation, with the 2028 timeline providing sufficient runway for market development while maintaining optionality regarding listing venue and market conditions [1].

Wrtn Technologies has developed a differentiated approach to AI-powered entertainment that addresses significant market concerns about companion-style chatbots while delivering measurable early-stage performance metrics. The company’s narrative-centric product philosophy, combined with reported retention rates exceeding 70% and proven execution in South Korea and Japan, provides a foundation for international expansion [1].

The planned US market entry by June 2026 and potential 2028 IPO timeline reflect realistic ambition balanced against market realities and competitive considerations. However, achieving projected revenue targets requires sustained execution across multiple dimensions including user acquisition effectiveness, content quality maintenance at scale, and successful differentiation in a competitive US market.

The competitive landscape, particularly Character.AI’s integration with Google following its 2024 acquisition, represents both a threat and market validation [6]. Wrtn’s early positioning in narrative-focused AI entertainment, combined with demonstrated revenue generation and retention capabilities, provides a foundation for continued growth—conditional on effective execution in the more resource-intensive American market environment.

The company’s total funding of approximately $104 million, while significant, falls short of competitive funding levels achieved by major US competitors, creating consideration regarding resource availability for sustained international expansion campaigns [2]. The announced 2026 funding round will provide additional insight into investor appetite for narrative entertainment platforms and Wrtn’s capacity to compete effectively in the US market.

---

This analysis is based on the Reuters report [1] published on February 10, 2026, reporting Wrtn’s US market entry plans and IPO targets, supplemented by Tracxn company profile data [2], market research from Nova One Advisor [3], Future UAE generative AI market analysis [4], Forbes AI investment analysis [5], Oreate AI coverage of the Character.AI acquisition [6], BillTrack50 regulatory tracking [7], OPB reporting on Washington state AI regulation [8], KATU coverage of Oregon legislative proposals [9], and Psychology Today analysis of AI companion trends [10].

[1] Reuters, “South Korea AI startup Wrtn aims to enter US market, targets IPO as early as 2028,” February 10, 2026

[2] Tracxn, “Wrtn Company Profile,” accessed February 10, 2026

[3] Nova One Advisor, “AI In Media and Entertainment Market,” accessed February 10, 2026

[4] Future UAE, “Trends in AI-Generated Content in 2026,” accessed February 10, 2026

[5] Forbes, “The State Of The $2.52 Trillion AI Bubble,” February 1, 2026

[6] Oreate AI, “Character.AI’s Journey: From Startup to Google Acquisition,” accessed February 10, 2026

[7] BillTrack50, “Regulating AI Companions Before They Raise Our Kids,” accessed February 10, 2026

[8] OPB, “Washington Gov. Bob Ferguson calls for regulations on AI chatbot,” January 12, 2026

[9] KATU, “Oregon lawmaker proposes regulations for AI ‘companions’,” accessed February 10, 2026

[10] Psychology Today, “Everything You Need to Know About AI Companions in 2026,” February 2026