CEO Jang Young-kyu

South Korean software developer Korea Firstec is making inroads into Japan’s legacy system migration market with its artificial intelligence (AI)-powered solution, gaining traction among major companies and government agencies.

“We are planning a proof-of-concept (PoC) project with O.B.System, a subsidiary of Japan’s Hitachi Group,” said Korea Firstec CEO Jang Young-kyu, in a recent interview with Maeil Business Newspaper. “The project involves automatically converting legacy COBOL code into Java using our proprietary Smart Conversion Suite.”

COBOL, a programming language launched in 1959, remains deeply embedded in Japanese enterprise and public sector systems. “Transitioning from COBOL to Java reduces program size and enhances speed,” Jang said.

He added that shift is accelerating as Japanese tech giant Fujitsu plans to cease production of COBOL-based mainframes by 2027.

The Smart Conversion Suite includes a system analysis tool, an AI-powered source code converter for programming languages, and an SQL converter for databases.

The AI engine quickly analyzes and translates older languages like C, COBOL, and Delphi into modern languages such as Java.

In Korea, over 250 organizations have adopted the solution, making it a go-to product for system migration.

According to Jang, the tool can reduce development time by 54 percent and cut costs by 44 percent.

Founded in 1988, Korea Firstec originally focused on system integration and maintenance services for domestic public institutions.

In 2022, the company expanded its business by acquiring the sales rights to the Smart Conversion Suite and began offering it as a subscription-based service.

The company has seen tangible success in Japan since last year, securing contracts with four entities, including O.B.System, Japan’s Digital Agency, Acronet, and Pacific Consultants.

For the Digital Agency, Korea Firstec provided an AI-based COBOL analysis tool that shortened the conversion timeline from over six months to just one month.

Jang estimates the Japanese migration market is worth about 70 trillion won ($47.5 billion). He said discussions are underway with Japanese branches of major Korean conglomerates regarding potential supply deals.