IMARC Group has recently released a new research study titled “South Korea Artificial Intelligence Market Size, Share, Trends and Forecast by Offering, Technology, End Use Industry, and Region, 2025-2033”, offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends and competitive landscape to understand the current and future market scenarios.
South Korea Artificial Intelligence Market Overview
The South Korea artificial intelligence market was valued at USD 3.12 Billion in 2024 and is projected to reach USD 30.00 Billion by 2033, growing at a CAGR of 26.60% during 2025-2033. The market is expanding due to investments in AI-oriented semiconductors by technology companies and government bodies, coupled with the growth of 5G and IoT technologies that enable integration of AI in autonomous vehicles and security systems.
STUDY ASSUMPTION YEARS
- Base Year: 2024
- Historical Year/Period: 2019-2024
- Forecast Year/Period: 2025-2033
SOUTH KOREA ARTIFICIAL INTELLIGENCE MARKET KEY TAKEAWAYS
- The market size in 2024 was USD 3.12 Billion.
- The market is expected to grow at a CAGR of 26.60% during 2025-2033.
- The forecast period spans from 2025 to 2033.
- Growing investments in AI-oriented semiconductor R&D by regional companies and government agencies.
- Expansion of 5G networks and Internet of Things (IoT) facilitating AI adoption in sectors like autonomous vehicles and security.
- Increasing adoption of AI in healthcare for diagnostics, drug discovery, and patient care.
- Rising AI integration in financial services for fraud detection, automated customer service, and robo-advisors.
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MARKET GROWTH FACTORS
The South Korea artificial intelligence market growth is propelled by significant investments in AI-oriented semiconductor research and development by both tech companies and government bodies. In April 2024, the South Korean President allocated 9.4 trillion Won (USD 6.94 Billion) for AI by 2027, emphasizing competitiveness in advanced semiconductor chips. This supports innovations in next-generation artificial general intelligence (AGI) and safety upgrades beyond current designs, enabling smarter devices, autonomous vehicles, and robotics.
AI adoption in the healthcare sector is a major growth driver. Hospitals and clinics employ AI for early diagnosis, personalized treatments, imaging analysis, and automated surgeries that improve efficiency and accuracy. The pharmaceutical industry uses AI to accelerate drug discovery and R&D. Due to South Korea's aging population, AI-driven remote monitoring and predictive analytics are crucial, making AI essential for improving healthcare outcomes.
The rising integration of AI with financial services is accelerating market growth as banks and fintech companies utilize AI for automated customer service, risk evaluation, real-time transaction monitoring, and fraud detection. AI-powered chatbots and virtual assistants enhance customer interaction, while machine learning algorithms assist in credit scoring and robo-advising. These technologies speed up loan approvals and improve accessibility to banking solutions, thereby increasing the market's expansion.
MARKET SEGMENTATION
Analysis by Offering:
- Hardware: Includes processors, GPUs, AI chips, and edge computing devices used to improve deep learning and machine learning tasks. The growing need for high-performance computing and cloud services drives the demand for specialized AI hardware.
- Software: Covers AI platforms, machine learning frameworks, and deep learning algorithms. Software integrates AI-driven analytics, natural language processing (NLP), and computer vision for automation in industries like finance, healthcare, and manufacturing.
- Services: Includes consulting, deployment, and maintenance services that facilitate effective AI integration. Companies rely on AI-as-a-service (AIaaS) models and cloud-based AI tools with support from AI service providers.
Analysis by Technology:
- Machine Learning: Enables automation and improves predictions by learning from data. It is widely applied in fraud detection, personalized recommendations, and medical diagnostics.
- Natural Language Processing: Important for AI-enabled chatbots, voice assistants, and translation tools. It enhances customer support, speech recognition, and text data analysis.
- Others: Other AI technologies complement machine learning and NLP across various applications.
Analysis by End Use Industry:
- IT and Telecom: Uses AI for network optimization, cybersecurity, and predictive maintenance, enhancing user experience with automated services.
- Healthcare: Employs AI for diagnostics, personalized treatment, drug discovery, and patient interaction through chatbots and robotic surgeries.
- Retail and E-Commerce: AI powers personalized shopping, inventory management, demand forecasting, and checkout systems.
- Logistics and Transportation: AI improves route optimization, fleet management, autonomous vehicles, and warehouse automation.
- Manufacturing: Integrates AI for quality control, predictive maintenance, automation, and smart factories.
- Consumer Electronics: Develops smarter devices with voice recognition and personalized recommendations.
- BFSI: Uses AI for fraud detection, risk assessment, customer service automation, and investment optimization.
- Others: Additional industries benefiting from AI applications.
REGIONAL INSIGHTS
The Seoul Capital Area dominates the South Korea artificial intelligence market, hosting numerous AI startups, research institutes, and tech companies. This region integrates AI extensively in finance, healthcare, and retail sectors. Key initiatives include smart city projects, autonomous vehicle testing, and AI-driven urban planning, fostering a thriving AI ecosystem. Specific market share and CAGR figures are not provided in the source.
RECENT DEVELOPMENTS & NEWS
- February 2025: Open AI partnered with Kakao to develop AI products for South Korea, marking Open AI's second major partnership in Asia.
- December 2024: KT initiated a new film production venture using AI technologies, establishing a media division led by an AI specialist.
- July 2024: Pixellot collaborated with KT Skylife and HCN to transform Korea's sports broadcasting through AI.
- April 2024: Samsung Electronics launched the 2024 Bespoke AI home appliances in Seoul, featuring interconnected AI technologies.
- March 2024: Rebellions partnered with Samsung and KT to mass-produce AI chips (ATOM) targeting large language models.
- February 2024: Baskin-Robbins opened a new Seoul store showcasing AI-developed unique ice cream flavors.
KEY PLAYERS
- Dow Jones Newswires
- Open AI
- Kakao
- KT
- Pixellot
- Samsung Electronics
- Rebellions
- Baskin-Robbins
If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.
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