South Korea Artificial Intelligence Market Trend, Opportunity, and Forecast Analysis, 2024-2032

South Korea Artificial Intelligence Highlights

The South Korea artificial intelligence market is expected to cross a market size of USD 21.15 billion by the end of 2032. The market size was valued at USD 5.2 billion in 2023 and is expected to expand at a CAGR of 17.5% between 2024-2032.

• Over the mid-term, the expanding advanced technology infrastructure is the primary factor anticipated to drive the South Korea artificial intelligence market.
• The limited availability of talent pool is a major factor to challenge the market growth.

South Korea Artificial Intelligence Market Outlook

The simulation of human intelligence in machines that are programmed to think, learn, and perform tasks autonomously, without human intervention, is known as artificial intelligence. These systems are designed to perceive their environment, interpret data, make decisions, and take actions to achieve specific goals.

According to our experts at KD Market Insights, one of the major factors anticipated to drive the growth of the South Korea artificial intelligence market is the expanding advanced technology infrastructure in the country. South Korea is known for its years of expertise in global information and communication technology. The country ranked second in Bloomberg Index of Most Innovative Nations 2020 and the nation is working on achieving its ambition to position itself as a global contender in AI technologies. According to Korea Trade Investment Promotion Agency (KOTRA) (Invest KOREA), Korea ranked 1st in ICT adoption in the year 2020, whereas according to the Global Innovation Index 2022 of the WIPO, Korea ranked 1st in ICT infrastructure. The nation also ranked 10th in terms of government AI readiness, according to Oxford Insights 2021. With the nation boasting an advanced technology infrastructure, the robust technology ecosystem provides a fertile ground for the development and deployment of AI solutions, which is expected to contribute to the market growth during the forecast period. Samsung Electronics Co. Ltd, SK Telecom Co., Ltd., and KT Corp, are some of the significant parties in the market for South Korea artificial intelligence.

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South Korea Artificial Intelligence Market Drivers – Analyst’s Observation

According to the analysts at KD Market Insights, some key growth drivers for the South Korea artificial intelligence market are:

• Increasing Investment Support from the Government: The South Korean government is working steadily on adopting innovative and disruptive AI technologies. The nation has launched initiatives, such as the Korean New Deal, and the AI National Strategy that accelerates the adoption and deployment of AI technologies across industrial sectors. The President of the country, Yoon Suk Yeol, also announced that it would invest about USD 7 billion in artificial intelligence by 2027. This investment is aimed to regain its position in cutting-edge semiconductor chips. Such initiatives of the government that is aimed at adopting AI in the nation is expected to drive the market growth for artificial intelligence in South Korea.
• Expanding AI Startup Ecosystem: The AI startup ecosystem in South Korea is at its nascent stage. Companies in the nation are working on setting up research and incubation centers. For instance, Samsung has opened seven AI centers in 5 countries, aimed at projects that would deal with new machine learning algorithms, AI Chip and On-Device AI. On the other hand, the second largest mobile carrier in the nation, KT, shared its plan to expand its AI engineer headcount, in addition to its commitment to invest USD 300 million on core AI research for the next 3 years. These ecosystems that fosters innovation and entrepreneurship in the AI sector, targeted especially in areas such as autonomous vehicles, robotics, healthcare analytics, and language processing are therefore expected to create numerous opportunities for market growth for AI in South Korea in the coming years.

Which Probable Factors Could Hamper the Growing South Korea Artificial Intelligence Market Trend?

As per our KD Market Insights analysis, some of the challenges expected to limit the market growth of South Korea artificial intelligence are:

• Limited Availability of Talent Pool: One of the most important factor expected to limit the market growth of artificial intelligence in South Korea is the non-availability of skilled professionals who have expertise in the fields of artificial intelligence, data science, and machine learning.
• Challenges in Adopting AI Technologies: Another factor expected to restrict the AI market growth in South Korea is the challenges faced by the organizations in the nation in adopting AI technologies, majorly as a result of limited financial resources, technical expertise, and organizational readiness.

How is the South Korea Artificial Intelligence Market Segmented?

Our experts at KD Market Insights have segmented the South Korea artificial intelligence market research report as:

Which Key Players Top the South Korea Artificial Intelligence Market Share?

As per our analysts at KD Market Insights, the competitive landscape of South Korea artificial intelligence market facilitates our readers in identifying their closest competitors. The manufacturers who are associated with South Korea artificial intelligence market are raising their focus on expanding their presence, as well as their market share. The market has also been witnessing an upward movement in the number of collaborations between research institutions and key players, aimed at introducing advanced technologies and innovation of new products. Here is a list of the key players who top the South Korea artificial intelligence market share:

• Samsung Electronics Co. Ltd
• SK Telecom Co., Ltd.
• KT Corp
• LG Corporation
• Kakao Enterprise
• Microsoft Corporation
• Google LLC
• Amazon Web Services, Inc.
• Riiid, Inc.

What are the Recent Developments Observed in the South Korea Artificial Intelligence Market?

Over the years, the experts at KD Market Insights have been observing the recent developments associated with South Korea artificial intelligence market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

For instance, Kakao stated that it would introduce a new AI foundation model aimed at balancing performance and cost efficiency.

Further, Hyundai Motor Group stated its plans for a strategic investment in the AI semiconductor startup company, Tenstorrent. This investment is aimed at developing high-performance semiconductors for neural processing units (NPU) and central processing units (CPU).