South Korea Artificial Intelligence (AI) Market Zooming 3.2X to Touch USD 10.7 Billion by 2031

Published | 05 June 2025

South Korea Artificial Intelligence (AI) Market is booming primarily due to rising government investments, strong tech infrastructure, skilled workforce, and growing adoption of AI across healthcare, manufacturing, and finance sectors.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated South Korea Artificial Intelligence (AI) Market size by value at USD 3.33 billion in 2024. During the forecast period between 2025 and 2031, BlueWeave expects South Korea Artificial Intelligence (AI) Market size to boom at a robust CAGR of 18.10%, reaching a value of USD 10.67 billion. The growth of Artificial Intelligence (AI) Market in South Korea is propelled by several key factors. The government's strategic initiatives, including the "AI National Strategy" and substantial investments totaling approximately USD 7 billion by 2027, aim to position the country as a global AI leader. A robust technological infrastructure, characterized by widespread 5G connectivity, supports the deployment of AI applications across various sectors. The nation's strong semiconductor industry, led by companies like Samsung and SK Hynix, underpins AI hardware advancements. Additionally, a vibrant startup ecosystem and collaborations with global tech firms foster innovation and accelerate AI adoption in industries such as healthcare, manufacturing, and finance.

Opportunity – Rising Adoption of AI in Healthcare

South Korea Artificial Intelligence (AI) Market is witnessing significant growth driven by the increasing integration of AI technologies in the healthcare sector. Hospitals and research institutions are leveraging AI for diagnostics, personalized treatment planning, and predictive analytics. Government initiatives such as the “Digital New Deal” are further encouraging AI adoption in medical imaging, drug development, and remote patient monitoring. The aging population and growing demand for advanced healthcare solutions are accelerating investments in AI-driven healthcare innovations, positioning South Korea as a leading hub for AI-enabled medical technologies in Asia.

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Machine Learning (ML) Segment Dominates South Korea AI Market​

Machine learning (ML) is the largest technology segment in South Korea Artificial Intelligence (AI) Market. The ML segment’s market dominance is driven by its extensive adoption across various industries such as finance, healthcare, manufacturing, and retail. ML applications in predictive analytics, fraud detection, customer behavior analysis, and automation are driving significant investments. South Korea’s strong digital infrastructure, government support through AI-focused policies, and a growing ecosystem of AI startups and research institutions further fuel the growth of ML segment. With its ability to enhance decision-making and operational efficiency, ML continues to lead the AI marketplace across South Korea.

Impact of Escalating Geopolitical Tensions on South Korea Artificial Intelligence (AI) Market

Escalating geopolitical tensions are reshaping South Korea Artificial Intelligent (AI) Market. For instance, United States-China tech rivalries and export controls threaten semiconductor supply chains, jeopardizing AI chip production reliant on Chinese components and markets. Leading South Korea-based global firms like Samsung and SK Hynix face pressure to limit exports to China, risking revenue losses and operational disruptions. In response, South Korea is investing in domestic AI infrastructure, including a USD 6.8 billion SK Hynix plant, and forming alliances with nations like Japan to bolster AI capabilities. However, increased regulatory scrutiny on AI mergers may slow innovation. Thus, while geopolitical strains pose significant challenges, they also drive strategic shifts toward self-reliance and regional collaboration in South Korea's AI sector.

Competitive Landscape

South Korea Artificial Intelligence (AI) Market is highly fragmented, with numerous players serving the market. Major companies dominating the market are Samsung Electronics, POSCO, Hancom Group, AhnLab, Kakao Corporation, CureMetrix, Humatics, LG Electronics, Hyundai Motors Co. Ltd, Naver Corporation, and SK Telecom. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in South Korea Artificial Intelligence (AI) Market.

Don’t miss the business opportunity in South Korea Artificial Intelligence (AI) Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and South Korea Artificial Intelligence (AI) Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in South Korea Artificial Intelligence (AI) Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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