The South Korea artificial intelligence market reached a value of nearly USD 1370.90 Million in 2025. It is projected to grow at a CAGR of 15.60% between 2026 and 2035 and reach around USD 5842.30 Million by 2035.
Base Year
Historical Period
Forecast Period
There is a rising adoption of generative AI in South Korea. In November 2022, OpenAI launched ChatGPT, an advanced generative AI technology in the country. As of April 2023, there were 2.2 million ChatGPT users in South Korea.
Leading South Korean automotive manufacturers such as Hyundai Motors Co. Ltd. and Kia Corporation, are heavily investing in AI and data driven vehicle mobility systems.
Major South Korean ICT companies, including Samsung Electronics, Kakao Group, Naver and LG Electronics are significantly investing on AI technologies to gain competitive edge in the market.
Compound Annual Growth Rate
15.6%
Value in USD Million
2026-2035
*this image is indicative*
| South Korea Artificial Intelligence Market Report Summary | Description | Value |
| Base Year | USD Million | 2025 |
| Historical period | USD Million | 2019-2025 |
| Forecast Period | USD Million | 2026-2035 |
| Market Size 2025 | USD Million | 1370.90 |
| Market Size 2035 | USD Million | 5842.30 |
| CAGR 2019-2025 | Percentage | XX% |
| CAGR 2026-2035 | Percentage | 15.60% |
| CAGR 2026-2035 - Market by Type | Healthcare | 17.8% |
| CAGR 2026-2035 - Market by Product and Service | Software | 19.4% |
The South Korean government is adopting AI-based industrial intelligence across all manufacturing sectors. The government also aims to have self-driving cars in the country by 2027 and to make it the first in the world to have self-driving cars on major streets. To meet this goal, the country’s government and Hyundai Motor Group plan to invest more than USD 50 billion in the South Korea self-driving car market by 2025.
Some of the factors driving the South Korea artificial intelligence market growth are the introduction of government initiatives aimed at driving technological advancements and the emergence of AI-focused startups or scaleups. Cities such as Seoul, Busan, Gwangju, and Pangyo have emerged as leading AI hubs, which aid in promoting the development and use of the technology. By 2027, KT Corporation, the second-biggest mobile carrier in Korea, plans to invest USD 1.2 billion in its AI and robotics business.
Rising industrial manufacturing activities; favourable government initiatives; technological advancements; and growing automotive production are favouring the South Korea artificial intelligence market expansion
As of December 2023, manufacturing accounted for 25.5% of the Korean GDP. By deploying predictive analytics and machine learning algorithms, AI helps manufacturing businesses, including automotive producers, to proactively monitor and anticipate equipment failures, reducing downtime.
In 2022, South Korea held 17.7% of the global semiconductor market share and was the 2nd largest chip producer globally. By 2030, the government aims to invest USD 850 million to aid the production of AI chips.
The South Korean government has announced multiple investments and provides AI startups with grants and tax benefits to aid their growth. For instance, in April 2024, the South Korean government announced an investment of USD 6.94 billion by 2027 in artificial intelligence to maintain its leading position in cutting-edge semiconductor chips, globally.
Advancements in technologies like machine learning allow AI systems to make accurate and complex decisions based on a thorough analysis of large volumes of data. Advancements such as Deep Learning, Natural Language Processing (NLP), and Generative Adversarial Networks (GANs) support the market growth.
In the automotive sector, AI helps companies improve the quality and efficiency of production processes, reduce waste, and assist with innovation. As of April 2021, South Korea was the 5th largest automotive producer globally. In 2023, it produced around 4.2 million vehicle units.
The South Korean healthcare landscape is increasingly open to adopting health IT. All tertiary hospitals in the country use EMR systems to digitise patient data and store clinical images digitally, which are further analysed by AI. The government also plans to establish 18 smart hospitals by 2025, offering further opportunities to the South Korea artificial intelligence market.
Furthermore, in the manufacturing sector, the South Korean government aims to prioritise the use of AI-based industrial intelligence. By 2030, it aims to develop over 2,000 AI-based factories. As of May 2024, South Korea has 1,101 artificial intelligence startups. These companies collaborate with companies in the academic, research, and industrial sectors to develop and push the boundaries of AI technology. Key AI startups in South Korea include Krafton, Mathpresso, Zig Zag, Lunit, and Channel Talk.
Figure: Production of Cars and Commercial Vehicles in South Korea, 2019-2025 (Units)
The Expert Market Research's report titled “South Korea Artificial Intelligence Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:
Market Breakup by Product and Service
Market Breakup by Technology
Market Breakup by End Use
| CAGR 2026-2035 - Market by | Product and Service |
| Software | 19.4% |
| Service | 15.9% |
| Hardware | XX% |
| CAGR 2026-2035 - Market by | Type |
| Healthcare | 17.8% |
| Security | 16.0% |
| Retail | 15.9% |
| Media and Advertising | XX% |
| Automotive | XX% |
| Others | XX% |
Services are expected to hold a significant market share as the government is providing AI vouchers to SMEs and start-ups that require AI-powered services
Artificial intelligence as a service allows individuals and companies to outsource AI capabilities to a third party. This enables them to experiment with AI for various purposes without requiring a large initial investment. Some of the companies providing AI services in South Korea include Kakao Brain and Naver Corporation.
South Korea is among the few countries that develop high-end semiconductor devices needed for AI development on a global scale. In April 2024, the South Korean government unveiled plans to offer financial support to local semiconductor efforts, including the formation of a USD 1 billion fund to help innovative AI chipmakers expand. By 2027, the country aims to invest USD 6.8 million to boost the country’s AI chip sector.
Companies across South Korea are adopting AI to accelerate digital transformation efforts by increasing task automation and reducing costs. In March 2024, the South Korean government announced its plan to invest USD 585 million in domestic AI research and development to strengthen its industrial competitiveness.
Read more about this report - REQUEST FREE SAMPLE COPY IN PDF
Headquartered in South Korea and founded in 1969, Samsung Electronics Co. Ltd offers artificial intelligence products and services through the integration and utilisation of different product categories that include memory, processor, and consumer electronics.
Headquartered in South Korea and founded in 1984, SK Telecom Co., Ltd. provides AI services that include the Korean Large Language Model (LLM) offering services to AI Phones, AI Music, and AI sleep management as well as AIX and AI infrastructure. By integrating AI with 5G and other technologies, SK Telecom aims to lead as a global AI company, driving innovation and contributing to social and economic development.
Headquartered in South Korea and founded in 1981, KT Corporation is a leading integrated telecommunications and platform service provider that aims to transform into an AI-driven ICT company. The company offers Artificial Intelligence integration products and services such as Data services, Voice traffic wholesale services, and Consulting services for operations.
Headquartered in South Korea and founded in 1958, LG Corporation offers artificial intelligence products and services that include LG AI research, LG Electronics such as LG ThinQ, lines of consumer electronics equipped with AI technology, LG Innotek, and LG CNS.
*Please note that this is only a partial list; the complete list of key players is available in the full report. Additionally, the list of key players can be customized to better suit your needs.*
Other key players in the South Korea artificial intelligence market include Kakao Enterprise Co. Ltd, Microsoft Corporation, Amazon Web Services, Inc., Google LLC, and Riiid, Inc., among others.
United States Artificial Intelligence Market
Artificial Intelligence in Sports Market
Artificial Intelligence (AI) Chip Market
Artificial Intelligence in Marketing Market
Artificial Intelligence Market
Upto 15% Off
USD
$2499 $2249
$3999 $3599
$4999 $4249
$5999 $5099
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
Get in touch with us for a customized solution tailored to your unique requirements and save upto 35%!
In 2025, the market value was USD 1370.90 Million.
The market is projected to grow at a CAGR of 15.60% between 2026 and 2035.
The market is estimated to witness a healthy growth in the forecast period of 2026-2035 to reach around USD 5842.30 Million by 2035.
The major drivers include the increasing government investment in AI, and incorporation of AI in automotive manufacturing and healthcare sectors.
The key trends aiding the market include an increasing number of AI focused startups and technological advancements in AI.
The major technologies considered in the market report include machine learning and natural language processing.
The major end uses of artificial intelligence include security, media and advertising, retail, automotive, healthcare, manufacturing, BFSI, and professional services.
The major players in the market include Samsung Electronics Co. Ltd, SK Telecom Co., Ltd., KT Corporation, LG Corporation, Kakao Enterprise Co. Ltd, Microsoft Corporation, Amazon Web Services, Inc., Google LLC, and Riiid, Inc., among others.
Explore our key highlights of the report and gain a concise overview of key findings, trends, and actionable insights that will empower your strategic decisions.
| REPORT FEATURES | DETAILS |
| Base Year | 2025 |
| Historical Period | 2019-2025 |
| Forecast Period | 2026-2035 |
| Scope of the Report |
Historical and Forecast Trends, Industry Drivers and Constraints, Historical and Forecast Market Analysis by Segment:
|
| Breakup by Product and Service |
|
| Breakup by Technology |
|
| Breakup by End Use |
|
| Market Dynamics |
|
| Competitive Landscape |
|
| Companies Covered |
|
Datasheet
One User
USD 2,499
USD 2,249
tax inclusive*
Single User License
One User
USD 3,999
USD 3,599
tax inclusive*
Five User License
Five User
USD 4,999
USD 4,249
tax inclusive*
Corporate License
Unlimited Users
USD 5,999
USD 5,099
tax inclusive*
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Small Business Bundle
Growth Bundle
Enterprise Bundle
*Please note that the prices mentioned below are starting prices for each bundle type. Kindly contact our team for further details.*
Flash Bundle
Number of Reports: 3
20%
tax inclusive*
Small Business Bundle
Number of Reports: 5
25%
tax inclusive*
Growth Bundle
Number of Reports: 8
30%
tax inclusive*
Enterprise Bundle
Number of Reports: 10
35%
tax inclusive*
How To Order
Select License Type
Choose the right license for your needs and access rights.
Click on ‘Buy Now’
Add the report to your cart with one click and proceed to register.
Select Mode of Payment
Choose a payment option for a secure checkout. You will be redirected accordingly.
Gain insights to stay ahead and seize opportunities.
Get insights & trends for a competitive edge.
Track prices with detailed trend reports.
Analyse trade data for supply chain insights.
Leverage cost reports for smart savings
Enhance supply chain with partnerships.
Connect For More Information
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
Our expert team of analysts will offer full support and resolve any queries regarding the report, before and after the purchase.
We employ meticulous research methods, blending advanced analytics and expert insights to deliver accurate, actionable industry intelligence, staying ahead of competitors.
Our skilled analysts offer unparalleled competitive advantage with detailed insights on current and emerging markets, ensuring your strategic edge.
We offer an in-depth yet simplified presentation of industry insights and analysis to meet your specific requirements effectively.
Share