Arya News - The Seoul-based startup leads AI race with customisable virtual personas.
SEOUL – Zeta, a locally developed artificial intelligence chatbot app, has overtaken ChatGPT to become the most-used AI chatbot in South Korea, according to new industry data released Tuesday.
Wiseapp Retail, a market analytics firm that monitors app and payment trends based on 51.2 million Android and iOS users nationwide, reported that Zeta recorded 73.62 million cumulative hours of user engagement in October. This figure significantly surpassed OpenAI’s ChatGPT, which came in second with 48.28 million hours.
Trailing behind were other AI chatbot apps, including Krak (8.98 million hours), Grok (1.95 million hours), Chatty (1.83 million hours) and Perplexity (1.57 million hours).
Developed by Seoul-based AI startup Scatter Lab, Zeta enables users to create customized AI characters by selecting names, personalities and interests — effectively transforming conversations into novel-like interactive storytelling experiences.
The app launched in open beta in April 2023 after receiving a 15 billion won ($10.2 million) investment from SK Telecom, the country’s largest wireless carrier. Within a year, Zeta amassed 2 million users globally, with its monthly conversation volume exceeding 2.3 billion exchanges.
Scatter Lab announced that Zeta became profitable in the second quarter of this year, generating 5.2 billion won in revenue and 900 million won in operating profit, reflecting an operating margin of 17 percent.
SOURCE: WISEAPP RETAIL; GRAPHICS: THE KOREA HERALD
Zeta’s rapid growth has been fueled by younger users, with those in their teens and 20s accounting for nearly 90 percent of its global user base. As of late May, over 3.9 million users had signed up, creating more than 190,000 unique AI characters on the platform.
The chatbot is powered by Scatter Lab’s small language model. Users can generate character visuals via AI and craft detailed personas using natural language, allowing for highly immersive roleplay experiences.
Recent feature upgrades have further boosted interactivity. A snapshot function generates contextual images with a single tap, while a voice feature allows AI characters to speak their lines using synthesized speech.
However, the app has not been without controversy. Critics have raised concerns over the generation of inappropriate or sexually suggestive content during certain user interactions. In response, Scatter Lab introduced an age verification system in August and launched a separate “unlimited mode” restricted to adults.
Looking ahead, the company is setting its sights on international growth. Following its recent entry into the Japanese market, Scatter Lab plans to expand into English-speaking regions, aiming to establish Zeta as a global platform with more than 100 million users in the coming years.