Korea-based HR tech company Wanted Lab has made its first overseas investment in Japan by investing in IT talent career matching company LAPRAS. The investment amount remains undisclosed.

Last year, Wanted Lab formed a strategic partnership with LAPRAS to introduce an AI matching model into the Japanese recruitment market, integrating its AI technology and expertise into LAPRAS’s platform. This collaboration led to the launch of various AI-driven services, including resume coaching and interview coaching, by combining LAPRAS’s local recruitment data with the core technology of Wanted Lab’s AI-powered recruitment service, “Wanted.”

In February, they introduced the “LAPRAS JOB BOARD PLAN,” which incorporates the “pay-per-hire” business model and operational expertise from Wanted’s AI matching recruitment service. Within just six months of its launch, the service has been adopted by over 200 companies.

The LAPRAS JOB BOARD PLAN offers direct matching between companies and job seekers, a revolutionary approach in Japan’s recruitment market, which is largely dominated by headhunting agencies. By allowing companies to find suitable candidates without involving headhunters, the service significantly reduces hiring costs. Companies pay a 15% fee based on the successful candidate’s salary, which is about half the typical commission rate of 35-40% in Japan.

With this investment, Wanted Lab plans to accelerate its expansion into the Japanese recruitment market. By forging closer partnerships with local firms, the company aims to actively support the digitalization of Japan’s recruitment industry and expand its influence. As of 2023, Japan’s recruitment market is estimated at approximately ¥9.91 trillion (around $67.4 billion USD), which is about 15 times the size of Korea’s recruitment market, estimated at ₩5.7 trillion (around $4.3 billion USD).

Kentaro Someya, CEO of LAPRAS, commented, “With the recent surge in digital transformation in Japan, demand for IT talent is rapidly increasing. Companies are willing to pay a commission of 35-40% of the successful candidate’s salary to find the right talent, but it remains a challenge.” He continued, “By leveraging Wanted Lab’s AI technology and business expertise, we aim to shift the Japanese recruitment market from a headhunting agency model to a matching recruitment platform model, revolutionizing the industry.”

Chulho Kang, CEO of Wanted Japan, added, “LAPRAS has been gradually innovating the headhunter-centric Japanese recruitment market with its tech-based recruitment service, the LAPRAS Score. Their insights and experience in the local recruitment market provide an ideal foundation for maximizing the impact of Wanted’s AI technology and business model.” He concluded, “With this investment, we have strengthened our partnership and look forward to jointly innovating the Japanese recruitment market while creating various business opportunities.”