SK networks unveils 'Korea's 1st' AI platform for pharmaceuticals through its unit PhnyX Lab

SK networks, a trading affiliate of SK Group, unveiled what it claims to be Korea's first AI platform for medicine and pharmaceuticals, called Cheiron, through its AI development unit at a launch event on Tuesday in Seoul.

"Through in-depth interviews with pharmaceutical industry experts, we confirmed that applying modular RAG can improve the research planning stage, including literature and data searches, by over 80 percent compared to traditional methods," said Bae Min-seok, CEO of PhnyX Lab, the AI development arm of SK networks. 

Bae introduced Cheiron to an audience of doctors, pharmacists, and industry researchers eager to witness the potential of AI in transforming their workflows.

Cheiron is built on modular retrieval-augmented generation (RAG) technology, designed to deliver source-verified, accurate information in real time. The platform aims to reduce the time spent on literature and data searches, enhancing efficiency in an industry where time and margins are tightly linked.

PhnyX Lab, a Silicon Valley-based startup, has ambitious plans for Cheiron. Founded by three Stanford students, the company partnered with SK networks earlier this year to develop and market-test its technology, officially launching as an independent entity in September.

The company’s lean team of seven is focused on expanding Cheiron’s applications beyond research to drug development and other pharmaceutical operations.

“The business we want to build and the direction we intend to take is already defined,” Bae said, describing Cheiron as an “enterprise-grade answer engine” that could transform pharmaceutical workflows.

Unlike traditional keyword-based search engines, Cheiron operates as a comprehensive research assistant. It scans academic databases, search engines, and internal company documents, synthesizing the results into concise, source-cited answers. Its design incorporates medical classification systems such as MeSH (Medical Subject Headings), ensuring the precision and relevance of its findings.

In addition, Cheiron supports multiple languages—Korean, English, and Japanese —and is not limited to literature searches. Its applications span across candidate molecule discovery, clinical trial design, and market analysis.

Jason Park, chief product officer at PhnyX Lab, explained how Cheiron simplifies the research process: “Researchers start by asking Cheiron a question. The platform analyzes external databases and integrates internal data to deliver the most relevant answers. If additional clarification is needed, users can ask follow-up questions, refining their insights in real time.”

Yet, Bae notes, adoption of generative AI is not without its challenges, especially in Korea. “Even among Fortune 500 companies, only 4 percent have fully implemented generative AI,” Bae said, emphasizing the hurdles faced by global companies trying to scale the technology.

“The reality is that even global companies struggle to adopt generative AI at the anticipated pace,” he added, acknowledging that skepticism runs deeper in Korea due to concerns over credibility, customizability, and security.

Outdated research methods are costing the Korean pharmaceutical industry up to $400 million annually, a significant drain on profitability, which averages just 7 percent in this sector. By improving efficiency, Bae believes Cheiron could boost those margins by as much as two percentage points.