South Korea Artificial Intelligence Market to Reach Around USD 3,419.92 Million by 2032, Driven by the Rising Government Investments in AI Research and Development

For AI research and development, South Korea has established a thriving ecosystem. The nation has developed an AI strategy, "Korea AI", aimed at fostering AI expansion and positioning South Korea as a major global AI hub. The government has committed substantial financial resources to assist AI projects and promote business, academic, and research institution collaboration, propelling the South Korea artificial intelligence market expansion.

Prominent Korean companies such as Samsung, LG Electronics and Kakao Corporation are significantly investing in AI. Moreover, international companies such as Microsoft Corporation and IBM (NYSE: IBM) are also attempting to promote AI advancements through partnerships.

There are 1,077 artificial intelligence startups in South Korea, that includes companies such as Krafton, Lunit, Zig Zag, and MakinaRocks. AI plays a crucial role in different industry verticals such as automotive, healthcare, manufacturing, and robotics. Artificial intelligence (AI) algorithms are being used in healthcare to increase diagnostic accuracy and identify diseases at an early stage. Additionally, South Korea has introduced initiatives to create smart cities, which use AI technology to optimise transportation, boost energy efficiency, and improve the standard of living for residents.

In April 2024, the South Korean government announced an investment of 9.4 trillion won (USD 6.94 billion) in artificial intelligence by 2027 as part of the country's efforts to maintain its position as the world's top producer of advanced semiconductor chips. Through the investment, South Korea intends to greatly increase research and development in AI chips, such as artificial neural processing units (NPUs) and next-generation high-bandwidth memory chips, by designating investments and a fund. The investment will also support advancements in safety technologies that surpass current models and next-generation artificial general intelligence (AGI).

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Market Analysis by Product and Service, Technology, and End Use:

• The market, on the basis of product and service, can be divided into hardware, software, and service.

• Based on technology, the market can be divided into machine learning, and natural language processing, among others.

• The various end uses for artificial intelligence market include security, media and advertising, retail, automotive, healthcare, and manufacturing, among others.

Key Findings of the Report:

• AI plays a pivotal role in the manufacturing, designing, and quality control of semiconductor chips. The export-oriented economy of South Korea is largely dependent on semiconductors. Chip exports hit a 21-month high of USD 11.7 billion in March 2024, accounting for over a fifth of all exports from Asia's fourth-largest economy.

• Government initiatives such as the “Korea AI” strategy to promote the growth of AI in several sectors and financial incentives such as tax benefits and grants provided to AI startups expand the South Korea artificial intelligence market growth.

• In the automotive sector, AI provides manufacturers with smooth operations and increases productivity by detecting defects, reducing waste, and improving production quality. By producing 4.2 million units of vehicles in 2023, South Korea ranks as the 5th largest automotive manufacturer globally.

• There are several prestigious research institutes and universities in South Korea that are actively involved in AI research. Two internationally recognised institutes that are leading the way in AI research are the Seoul National University Artificial Intelligence Research Centre and the Korea Advanced Institute of Science and Technology (KAIST). Continuous research and development activities drive the AI market growth in South Korea.

Figure: Automotive Production (in million units), 2018-2023

Key Offerings of the Report:

• The EMR report gives an overview of the South Korea artificial intelligence market for the periods (2018-2023) and (2024-2032).

• The report also offers the historical (2018-2023) and forecast (2024-2032) markets for the products and services, technologies, and end uses of artificial intelligence in South Korea.

• The report analyses the market dynamics, covering the key demand and price indicators in the market, along with an assessment of the SWOT and Porter’s Five Forces models.

The major players in the South Korea artificial intelligence market are Samsung Electronics Co. Ltd, SK Telecom Co., Ltd., KT Corp, LG Corporation, Kakao Enterprise, Microsoft Corporation, Google LLC, Amazon Web Services, Inc., and Riiid, Inc., among others. The comprehensive report by EMR looks into the market share, capacity, and latest developments like mergers and acquisitions, plant turnarounds, and capacity expansions of the major players.

Key Highlights of the Report

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*At Expert Market Research, we strive to always give you current and accurate information. The numbers depicted in the description are indicative and may differ from the actual numbers in the final EMR report.