South Korea Artificial Intelligence Market

South Korea Artificial Intelligence (AI) Market, By Offering (Hardware, Software, Services); By Technology (Machine Learning (ML), Natural Language Processing (NLP), Machine Vision, Autonomous & Sensor Technology); By Application (Finance, Security, Human Resources, Marketing & Sales, Supply Chain Management (SCM)), Trend Analysis, Competitive Landscape & Forecast, 2019–2031
- Published Date: June 2025
- Report ID: BWC25291
- Available Format: PDF
- Page: 132
Report Overview
The South Korean government’s robust investment in growing AI startup ecosystem, rapid adoption of AI in semiconductor, healthcare, and financial services sectors, and the development of AI workforce are expected to boost the growth of South Korea Artificial Intelligence (AI) Market during the forecast period between 2025 and 2031.South Korea Artificial Intelligence (AI) Market – Industry Trends & Forecast Report, 2031
South Korea Artificial Intelligence (AI) Market size was estimated at USD 3.33 billion in 2024. During the forecast period between 2025 and 2031, South Korea Artificial Intelligence (AI) Market size is projected to boost at a robust CAGR of 18.10%, reaching a value of USD 10.67 billion by 2031. South Korea's AI Market is driven by government investment in AI research and development, fostering innovation and infrastructure growth. The expanding AI startup ecosystem accelerates technological advancements and commercialization. Integration of AI in semiconductor manufacturing enhances efficiency and global competitiveness. Rising adoption in healthcare improves diagnostics and patient care. Financial services expansion leverages AI for fraud detection and automation. Talent development initiatives address workforce gaps. Regulatory support ensures ethical AI deployment, while technological advancements drive continuous improvements in AI capabilities.
Artificial Intelligence (AI) – Overview
Artificial intelligence (AI) is a transformative technology that enables machines to simulate human intelligence. It encompasses machine learning (ML), natural language processing (NLP), robotics, and computer vision, driving advancements across industries. AI enhances automation, decision-making, and predictive analytics, improving efficiency and accuracy. It powers applications in healthcare, finance, manufacturing, and customer service. While AI offers vast opportunities, ethical concerns, data privacy issues, and biases remain challenges. As AI continues evolving, its integration into daily life accelerates, shaping the future of technology and innovations.
South Korea Artificial Intelligence (AI) Market
Growth Drivers
Government’s Growing Investments in AI Initiatives
The South Korean Government is heavily investing in AI to drive technological and economic expansion. Initiatives like I-Korea 4.0 promote AI integration across industries, fostering innovation and global competitiveness. In 2024, the government allocated over SKW 1.2 trillion (USD 900 million) for AI development. Collaborations with private firms enhance research, talent development, and infrastructure, positioning South Korea as a leading AI hub. These investments accelerate AI adoption in healthcare, finance, and manufacturing, strengthening the nation’s digital economy.
Challenges
Limited Availability of AI Talent
South Korea faces a significant AI talent shortage, impacting market growth and innovations. Despite strong AI research output, top talent is increasingly migrating to foreign companies offering higher salaries and better opportunities. Domestic firms struggle to retain skilled professionals, limiting AI advancements. The disparity in investment between South Korea and global AI leaders further exacerbates the issue. Addressing this challenge requires enhanced education programs, competitive compensation, and government-backed initiatives to retain AI expertise.
Impact of Escalating Geopolitical Tensions on South Korea Artificial Intelligence (AI) Market
Intensifying geopolitical, trade, and tariff tensions among the countries across the major regions are reshaping South Korea Artificial Intelligence (AI) Market. The China-United States rivalry complicates talent acquisition, as restrictions on AI collaboration limit cross-border expertise. South Korea’s AI sovereignty push aims to retain domestic talent, but global competition for skilled professionals remains intense. Government investment prioritizes AI infrastructure over workforce development, raising concerns about long-term talent sustainability. Addressing these challenges requires strategic policies to attract and retain AI experts while navigating international uncertainties.
South Korea Artificial Intelligence (AI) Market
Segmental Coverage
South Korea Artificial Intelligence (AI) Market – By Offering
By offering, South Korea Artificial Intelligence (AI) Market is divided into Hardware, Software, and Services segments. The software segment holds the largest share of South Korea Artificial Intelligence (AI) Market by offering, driven by the rising adoption of AI-based applications across industries, such as healthcare, automotive, and finance. Software solutions, including machine learning (ML) platforms, natural language processing (NLP), and predictive analytics, are in high demand, due to their ability to enhance decision-making and operational efficiency. Additionally, government support for AI development and investment in smart technologies further boost the growth of the software segment.
South Korea Artificial Intelligence (AI) Market – By Technology
Based on technology, South Korea Artificial Intelligence (AI) Market is divided into Machine Learning (ML), Natural Language Processing (NLP), Machine Vision, and Autonomous & Sensor Technology segments. The ML segment is the largest technology in South Korea Artificial Intelligence (AI) Market. The ML segment’s market dominance in South Korea, due to its widespread application across industries such as healthcare, finance, manufacturing, and retail. South Korea's strong technological infrastructure and government-backed AI initiatives have accelerated machine learning adoption for predictive analytics, automation, and data-driven decision-making. The integration of machine learning in smart factories and robotics further strengthens its position as the leading segment in the country’s rapidly growing AI ecosystem.
South Korea Artificial Intelligence (AI) Market – By Application
On the basis of application, South Korea Artificial Intelligence (AI) Market is divided into Finance, Security, Human Resources, Marketing & Sales, Supply Chain Management (SCM) segments. The finance segment is the largest application in South Korea Artificial Intelligence (AI) Market, due to the rapid adoption of AI technologies in banking, investment, and insurance services to enhance fraud detection, automate trading, and improve customer service through chatbots and predictive analytics. Financial institutions in South Korea are increasingly leveraging AI to gain competitive advantages, reduce operational costs, and deliver personalized services, making the finance sector the most significant contributor to the country's AI market growth.
Competitive Landscape
Major companies operating in South Korea Artificial Intelligence (AI) Market include Samsung Electronics, POSCO, Hancom Group, AhnLab, Kakao Corporation, CureMetrix, Humatics, LG Electronics, Hyundai Motors Co. Ltd, Naver Corporation, and SK Telecom. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2019–2031 |
Base Year – 2024 |
|
Estimated Year – 2025 |
|
Forecast Period – 2025–2031 |
|
Facts Covered |
Revenue in USD Billion |
Market Coverage |
South Korea |
Product/ Service Segmentation |
Offering, Technology, Application |
Key Players |
Samsung Electronics, POSCO, Hancom Group, AhnLab, Kakao Corporation, CureMetrix, Humatics, LG Electronics, Hyundai Motors Co. Ltd, Naver Corporation, SK Telecom |
By Offering
-
Hardware
-
Software
-
Services
By Technology
-
Machine Learning (ML)
-
Natural Language Processing (NLP)
-
Machine Vision
-
Autonomous & Sensor Technology
By Application
-
Finance
-
Security
-
Human Resources
-
Marketing & Sales
-
Supply Chain Management (SCM)
- Research Framework
- Research Objective
- Product Overview
- Market Segmentations
- Executive Summary
- South Korea Artificial Intelligence (AI) Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Government Investment in AI Initiatives
- Expanding AI Startup Ecosystem
- Integration of AI in Semiconductor Manufacturing
- Restraints
- Limited Availability of AI Talent
- Challenges in Adopting AI Technologies
- High Implementation Costs
- Opportunities
- Rising Adoption of AI in Healthcare
- Expansion of AI in Financial Services
- Challenges
- Data Privacy and Security Concerns
- Regulatory and Ethical Issues in AI Deployment
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- South Korea Artificial Intelligence (AI) Market Strategies
- South Korea Artificial Intelligence (AI) Market: Pricing Analysis
- South Korea Artificial Intelligence (AI) Market Overview
- Market Size & Forecast, 2019–2031
- By Value (USD Billion)
- Market Share & Forecast
- By Offering
- Hardware
- Software
- Services
- By Technology
- Machine Learning (ML)
- Natural Language Processing (NLP)
- Machine Vision
- Autonomous & Sensor Technology
- By Application
- Finance
- Security
- Human Resources
- Marketing & Sales
- Supply Chain Management
- By Offering
- Market Size & Forecast, 2019–2031
- Competitive Landscape
- List of Key Players and Their Offerings
- South Korea Artificial Intelligence (AI) Market Share Analysis, 2024
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Developments (Mergers, Acquisitions, Partnerships)
- Impact of Escalating Geopolitical Tensions on South Korea Artificial Intelligence (AI) Market
- Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
- Samsung Electronics
- POSCO
- Hancom Group
- AhnLab
- Kakao Corporation
- CureMetrix
- Humatics
- LG Electronics
- Hyundai Motors Co. Ltd
- Naver Corporation
- SK Telecom
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Region
- Assumptions & Limitations
- Qualitative Research
*Financial information of non-listed companies can be provided as per availability.
The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.
List of Figures
Figure 1 South Korea Artificial Intelligence (AI) Market Segmentation
Figure 2 South Korea Artificial Intelligence (AI) Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2024
Figure 4 South Korea Artificial Intelligence (AI) Market Size, By Value (USD Billion), 2019–2031
Figure 5 South Korea Artificial Intelligence (AI) Market Share, By Offering, By Value, 2019–2031
Figure 6 South Korea Artificial Intelligence (AI) Market Share, By Technology, By Value, 2019–2031
Figure 7 South Korea Artificial Intelligence (AI) Market Share, By Application, By Value, 2019–2031
List of Tables
Table 1 South Korea Artificial Intelligence (AI) Market Size, By Value (USD Billion), 2019–2031
Table 2 South Korea Artificial Intelligence (AI) Market Size, By Offering, By Value, 2019–2031
Table 3 South Korea Artificial Intelligence (AI) Market Size, By Technology, By Value, 2019–2031
Table 4 South Korea Artificial Intelligence (AI) Market Size, By Application, By Value, 2019–2031
Table 5 Samsung Electronics Company Overview
Table 6 Samsung Electronics Financial Overview
Table 7 POSCO Company Overview
Table 8 POSCO Financial Overview
Table 9 Hancom Group Company Overview
Table 10 Hancom Group Financial Overview
Table 11 AhnLab Company Overview
Table 12 AhnLab Financial Overview
Table 13 Kakao Corporation Company Overview
Table 14 Kakao Corporation Financial Overview
Table 15 CureMetrix Company Overview
Table 16 CureMetrix Financial Overview
Table 17 Humatics Company Overview
Table 18 Humatics Financial Overview
Table 19 LG Electronics Company Overview
Table 20 LG Electronics Financial Overview
Table 21 Hyundai Motors Co. Ltd Company Overview
Table 22 Hyundai Motors Co. Ltd Financial Overview
Table 23 Naver Corporation Company Overview
Table 24 Naver Corporation Financial Overview
Table 25 SK Telecom Company Overview
Table 26 SK Telecom Financial Overview
Market Segmentation
To request a free sample copy of this report, please complete the form below.
We value your investment and offer free customization with every report to fulfil your exact research needs.
Frequently Asked Questions (FAQs):
4. What are the major factors driving the growth of South Korea Artificial Intelligence (AI) Market?
RELATED REPORTS
WHY CHOOSE US
-
24/7 Research Support
Get your queries resolved from an industry expert. Request for a free product review before report purchase.
-
Custom Research Service
Ask the Analyst to customize an exclusive study to serve your research needs
-
Quality & Accuracy
Ask the Analyst to customize an exclusive study to serve your research needs
-
Data Visualization
As the business world is changing dynamically every day. We need to stay pin point in relation to data management and optimum data utilization
-
Information security
We never share your personal and confidential information. Your personal information is safe and secure with us.