-Prevent overheating and cooling with AI that learned 1 billion pieces of data
-Management of 1,000 stores of 50 brands, proven energy saving effect of 15~54%
-Market segmentation with customized solutions from small business owners to large corporations
– Achieving the vision of becoming a global air conditioning tech company by fully advancing into Southeast Asia
Amid skyrocketing electricity rates and accelerating climate crisis, SeedN's 'Leaf' is attracting attention in a situation where efficiency in the heating and cooling sector, which accounts for 46% of building energy, is urgently needed. SeedN provides customized solutions that fit the space and situation of each customer, from small business owners to large corporations. Starting this year, SeedN plans to fully engage in R&D for entry into the air conditioning market based on its experience and know-how to date. We heard the story of SeedN, which is at a new turning point as it celebrates its 10th anniversary. CEO Choi Hyun-woong, whom we met at the SeedN office in Songpa-gu, Seoul, shared his thoughts on the 10th anniversary (May 21, when we interviewed SeedN, marked the 10th anniversary of its founding).
“It seems like the market is open now”
After graduating from Hanyang University’s Department of Architectural Engineering, CEO Choi Hyun-woong worked at a company that researched building energy. It was fun and interesting work, but it was unfortunate that the research did not have an impact on the world.
“I enjoyed doing research. It was satisfying. But I felt that it was my own accomplishment and that I couldn’t make an impact on the world. I wanted to do something that could have some impact on society.”
With that in mind, CEO Choi conceived a business idea in 2013. After learning everything from hardware circuit design to software on his own for two years, CEO Choi met his 30-year friend, Vice President Hong Won-jin (current CMO), at the Youth Entrepreneurship Academy in 2015 and founded Seed & together. After two years of preparation, they founded the business, but the market response was colder than expected.
“It wasn’t easy to develop the market. I thought a lot about why companies wouldn’t introduce ‘Leaf’, which is comfortable, convenient, and efficient, and why there was no need. I also kept asking whether there was an energy market.”
The building energy sector is conservative. So it wasn’t easy to convince decision makers and stakeholders. Another problem was that everyone had different ideas about energy. Since everyone had different standards for ‘good temperature,’ everyone had different standards for judging whether the temperature of a space was good or bad. “When I explained about Leaf, most people responded that it was a ‘universal remote control.’”
CEO Choi continued to persuade for 10 years. While accumulating technological capabilities, he secured reliability through partnerships with large corporations. He also continued to accumulate empirical data and references. Then, a big opportunity came to Seed &. The energy management market began to open up little by little due to changes in the external environment such as the recent issue of KEPCO’s electricity rate hike, the climate crisis, and ESG mandatory disclosure.
The energy management solution market is accelerating in many ways. CEO Choi said, “As the global economy becomes difficult, there is an economic reason to manage energy, and as awareness grows that we must overcome the climate crisis, investments in climate tech are pouring in and gaining attention overseas. I think climate tech will be a future food source for the next 10 or 20 years.”
AI learned from 1 billion data…Prediction-based overcooling prevention
Seed&'s core technologies are real-time data collection and AI-based predictive control. Weather data, usage patterns, and spatial information are collected in real time, and the Seed AI engine analyzes, learns, and predicts these data before executing optimal control.
Of particular note is the prediction-based overheating and cooling prevention technology. CEO Choi explained, “In order to prevent overheating and cooling and increase comfort, precise data prediction, real-time response, and clear evidence are necessary.”
While the existing reactive control method responds after overcooling or heating has already occurred, the Seed & System reflects real-time variables every 10 minutes to change comfort standards according to time zone and variable changes and predicts and responds in advance. Based on this technology, Seed & has accumulated about 1 billion field data according to space characteristics by customer category for 10 years and has secured 12 registered patents in Korea and the United States specializing in temperature management.
Develop customized solutions that reflect the characteristics of each space
“Small business owners want to manage their stores in detail, while B2B stores are interested in environmental improvement, branding, and energy efficiency. Large corporations and large workplaces are interested in carbon reduction, CSR, ESG, and improving the work environment. Needs vary depending on the users and the environment of the space.”
Reflecting these market needs, Seed & has segmented its existing Leaf solutions into ▲'Leaf' for small business owners, ▲'Leaf Store' for franchise and branch management, ▲'Leaf Office' for managing business establishments and buildings, and ▲'Leaf X' for large-scale facilities such as factories and universities (scheduled to be launched in June 25).
▲Leaf – Micro store management for small business owners
Leaf is a product specialized for store owners and small business owners who want to manage their stores in detail and accurately. Leaf includes a time-based pattern setting function. It focuses on intuitive and easy operation rather than complex functions, and provides customized management by learning the operating patterns of individual stores and the preferences of store owners.
▲Leaf Store – Franchise integrated management platform
Leaf Store is a product for B2B franchises or multi-branch companies interested in environmental improvement, branding, and energy efficiency. Since it is necessary to manage all stores nationwide, it provides energy efficiency diagnosis functions for each store, a VOC system that allows store managers to report problems when equipment breaks down, and functions that support smooth communication between headquarters and branches. According to CEO Choi, large franchises initially use Leaf Store to reduce operating costs, but they feel its value in terms of branding as they actually use it. This is because the temperature and comfort of large stores are directly related to branding.
▲Leaf Office – Solving temperature imbalance in office spaces
Leaf Office is for businesses or building-level offices that are interested in carbon reduction, CSR, ESG, and improving the work environment. Due to the nature of the space used by an unspecified number of people, temperature imbalance among members is the most important issue. To solve this, specific members can deliver temperature-related feedback to managers, and managers review the feedback and decide on a response plan. It also provides functions specialized for systematic building management, such as work assignment between managers and sharing photos after on-site inspections.
▲Leaf X – Integrated management of large-scale facilities
Scheduled to be released in early June this year, Leaf X targets large-scale facilities such as factories, universities, and large apartment complexes that are difficult to handle with existing solutions. In the case of overseas factories or local industrial complexes, the complex size itself is large, and each space within the facility has a variety of uses. Research labs and laboratories that must maintain a specific temperature require customized settings for each space. In addition, many factory complexes require an integrated dashboard that allows for a quick and efficient integrated management by group or complex, as it is inefficient to individually find and control thousands of cooling and heating units.
50 brands, 1,000 stores, 10,000 air conditioners managed
Seed&'s performance is also proven in numbers. Currently, more than 50 corporate brands have adopted Seed&'s solutions, and the number of stores has exceeded 1,000. The number of controlled air conditioners is approximately 10,000. In particular, the 'Caps Smart Heating and Cooling Business' launched with SK Shielders has recorded explosive growth. In the first year of launch, sales of air conditioners increased by 477% from 745 units to 4,300 units in just one year.
The energy saving effect is also impressive. Representative road shops and franchises, such as global clothing franchise H, achieved energy saving effects of 15% to 28%, and buildings and offices also showed saving effects of 15% to 54%.
Full-scale overseas expansion… Love calls from 7 Southeast Asian countries
Seed & is seeking to enter the apartment complex sector this year. This is also why it recently received strategic investment from a large construction company. It is also challenging the data center market, which has high power demand. It has also been selected for domestic innovative procurement and plans to expand its business into the procurement sector.
We are also planning to make full-fledged forays into overseas markets. Starting from the second quarter of this year, seven countries including Japan, Singapore, Taiwan, Vietnam, the Philippines, Indonesia, and Thailand have expressed interest in Seed and Solutions, so this year is a good opportunity to explore overseas markets. We plan to conduct a service verification test (POC) with a Taiwanese distributor for nationwide introduction, and have also completed service verification tests in Singapore and Indonesia, receiving positive responses from local buyers.
“We plan to target overseas markets, especially Southeast Asia. The Southeast Asian market has a dry and rainy season, but the climate is the same all the time, so it is easy to test and verify technology. It also has great economic merits. Since electricity rates in Korea are about 30% of those in Southeast Asia, the electricity cost savings here are much greater than in Korea. For example, if a store in Korea spends about 20 to 30 million won on electricity annually, a store of the same size in Singapore would cost over 100 million won. In Korea, you need to save about 15% to feel the effects, but here, you can feel the effects even with just a 5% savings, which is an advantage.”
Leaping forward to become a major air conditioner company
Seed &'s next 10-year plan is ambitious. The ultimate goal is to become a building air conditioning IT tech company. Seed & has also begun full-scale R&D on air conditioning this year.
“Seed &’s goal is to become a specialized air conditioning technology company. In reality, the most essential facility in a building is the air conditioning unit, and air conditioning accounts for the largest share of energy consumption. If we establish ourselves as a leading company in the air conditioning industry, we believe there will be a significant synergy effect in the energy management field.”
Seed & has built up unrivaled technology and references through 10 years of R&D and market development. Now, it dreams of full-scale growth in the global market and leaping forward as a major air conditioner company. Now that the climate crisis and energy efficiency have become global issues, Seed &’s journey is expected to receive even more attention.
You must be logged in to post a comment.