South Korea Artificial Intelligence Market Share, Size, Trends, Growth, Analysis: By Product and Service: Hardware, Software, Service; By Technology: Machine Learning, Natural Language Processing, Others; By End Use: Security, Media and Advertising, Retail, Automotive, Healthcare, Manufacturing, Others; Competitive Landscape; 2024-2032

South Korea Artificial Intelligence Market Outlook

The South Korea artificial intelligence market size reached a value of more than USD 1,011.04 million in 2023. The South Korea artificial intelligence (AI) industry is expected to grow at a CAGR of 14.5% between 2024 and 2032, reaching a value of USD 3,419.92 by 2032.

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Key Trends in the South Korea Artificial Intelligence Market

Artificial intelligence (AI) is the ability of a robot or digital computer that is controlled by a computer to execute tasks that people routinely do. The phrase is frequently used to describe efforts to develop artificial intelligence (AI) systems that have cognitive capacities similar to those of humans, such as the ability to reason, discover meaning, generalise, and learn from experience.

Intense Research Work and Investments by Chaebol Conglomerates is Boosting the Development of AI market in South Korea

The chaebol Korean conglomerates, who are frequently involved in a variety of different industries and enterprises, are the major participants in the area, despite the fact that the Korean government plays a rather active role in determining the general direction of AI research activities. Many corporations have set up AI research centres in recent years, either as inside facilities or external "lab" structures, with the goal of granting the centres some autonomy from the company's daily operations. The big Korean ICT businesses are exploring AI technology intensively. The main internet businesses, Kakao and Naver, the two leading manufacturers of electronics, Samsung and LG Electronics, and the two largest providers of telecommunications, SK and KT, have all made considerable investments in artificial intelligence.

Strong ICT Infrastructure and Updated laws and regulations to Bolster the AI market of South Korea During the Forecast Period

With more than 6,000 AI-related patents submitted in the last 12 years, Korea's AI business is expanding. Over the forecast period, the AI market will witness growth in the commercialization of AI goods and services, both for the domestic market and for consumer goods produced in South Korea for export. South Korea is quite proud of its robust networking and ICT infrastructure. A wave of hyper-connectivity across the nation has been brought on by the country's top-notch ICT infrastructure, which has led to a dramatic rise in the number of AI-based virtual assistants available on the South Korean market. 

Korea created an artificial intelligence plan in 2019 , not long after participating in the negotiations that led to the OECD AI Principles, in an effort to direct AI toward becoming a major driver of the fourth industrial revolution. In 2020, South Korea introduced the Digital New Deal with a digital ecosystem that comprises a data dam and other items in order to overcome COVID-19, a recession, and quicken the digital revolution. South Korea is developing an enabling policy climate for AI while building a strong technological infrastructure. The country revised its three primary privacy regulations in 2020 to encourage the use of data. In order to create a conducive atmosphere for the application of AI, they also passed a framework act on intelligent information technology. All of this is part of South Korea's plan to update its laws, systems, regulations, and access policies.

South Korea is enhancing its AI expertise and has stated its goal of establishing itself as a worldwide competitor in the markets for AI technology. Officials in the Republic of Korea (ROK) are determined to making Korea a global leader in AI because they view AI as a key component of their nation's ICT sector competence. In order to further this objective, the ROK government unveiled its first national AI plan in 2019. This strategy emphasised significant expenditures in AI infrastructures as well as increased use of AI technology across all industries. The government unveiled its Digital New Deal in 2020, which outlines state-led educational and industrial initiatives on the potential benefits of AI. 

Market Analysis

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Based on product and service, the South Korea artificial intelligence market is segmented into hardware, software, and service. Based on technology, the South Korea artificial intelligence (AI) market is classified into machine learning and natural language processing. On the basis of end-use, the artificial intelligence (AI) market can be divided into security, media and advertising, retail, automotive, healthcare, and manufacturing, among others.  

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the South Korea artificial intelligence (AI) market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans. 

• Samsung Electronics Co. Ltd

• SK Telecom Co., Ltd.

• KT Corp

• LG Corporation

• Kakao Enterprise

• Microsoft Corporation

• Google LLC

• Amazon Web Services, Inc.

• Riiid, Inc.

• Others

Market Share by Product and Service

Software with artificial intelligence (AI) imitates human behaviour by learning different data patterns and insights. Machine learning, speech and voice recognition, virtual assistants, and other top characteristics of AI software. On the other hand, AI-as-a-service describes pre-configured, cloud-based, pay-as-you-go AI services and solutions. Before making any significant Capex or Opex expenditures, this enables the customer to test various AI use cases and demonstrate value. In the upcoming years, the demand for artificial intelligence products and services is anticipated to increase due to the growing acceptance of AI technology across a variety of end-use industries. Moreover, the hardware for artificial intelligence consists of a variety of parts, including GPU, ASIC, CPU, and FPGA. Due to the great computational capacity of CPUs and GPUs, there is a huge demand for them, which has led to their domination in the hardware segment. 

Market Share by Technology

Machine learning, which is presently at the core of AI-driven research and development, is one of the subfields that have emerged as a result of the field of artificial intelligence's expansion in diversity and sophistication during the past thirty years. The massive contribution of machine learning to the overall investments in AI technology is promoting the development of cognitive solutions by accelerating its use in a variety of applications, including hypothesis generation, clustering, modifying, tagging, clustering, filtering, visualisation, and navigation. Over the past several years, deep learning architectures and algorithms have made substantial advancements in voice and picture recognition. Because of growing data digitization, more scalable, inexpensive processing capabilities, and the convergence of deep learning (DL) and machine learning, NLP has experienced rapid growth in recent years (ML). The expansion of advanced text analytics demands as well as the advancement of machine-to-machine technologies are the main factors driving the growth of South Korea artificial intelligence market. NLP is also being used more often in healthcare facilities and customer support.

Market Share by End Use

As the applications of artificial intelligence (AI) in critical sectors like healthcare, smart cars, and military affairs continue to multiply, countries are seeking to realise technology’s economic and national security benefits. To capitalise on these opportunities and spur technological innovation, countries are scrambling to build healthy AI ecosystems. The rising popularity of various life-saving medical devices and the self-driving feature in new electric vehicles are significantly boosting the growth of the AI market across the globe. 

At present, AI technology is being used in the food industry. With the use of AI robots, Harim Group  intends to boost productivity and management effectiveness to give consumers the freshest foodstuffs possible while reducing inventory waste through big data-based forecasts, which will assist in increasing profitability. AI robots in cold storage distribution centres can assist in real-time data monitoring, detecting fluctuations in temperature and humidity or an early fire danger.

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Competitive Landscape

SK Telecom Co., Ltd. - The business launched the fifth generation (5G) network for commercial use on December 1, 2018, and on April 3, 2019, it announced the signing up of the first 5G smartphone users. With the greatest 5G in the world, SK Telecom is poised to usher in the Age of Hyper-Innovation by revolutionising how users work, live, and play. Using its expertise in mobile services as a foundation, the business is also generating previously unreleased value across a variety of ICT-related areas, including media, security, and commerce. With 30 million mobile users, SK Communication is the largest wireless telecom provider in South Korea. SK Telecom Co. Ltd. Has its headquarters in Seoul, South Korea and was established in the year 1984.

LG Corporation - LG Corp. is a holding corporation that manages its subsidiary businesses. LG Siltron Incorporated, LG Electronics Inc., LG Uplus Corp., LG Chem Ltd., LG CNS Co., Ltd., LUSEM Co., Ltd., LG Management Development Institute and LG Solar Energy Inc., are only a few of the company's subsidiaries. Through its subsidiaries, LG Corp. operates in the fields of electronics, chemicals, and telecommunications & services. The business has operations in Asia, Africa, North America, the Middle East, Latin America, and Europe, and is headquartered in Seoul, South Korea.

Key Highlights of the Report

*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.