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 size was valued at USD 3.12 Billion in 2024 and is expected to grow to USD 30.00 Billion by 2033, exhibiting a CAGR of 26.60% during the forecast period 2025-2033. This growth is driven by increasing investments in AI-oriented semiconductors by regional tech companies and government agencies, along with the expansion of 5G and IoT technologies that facilitate the integration of advanced AI solutions into autonomous vehicles and security systems.

Study Assumption Years

• Base Year: 2024
• Historical Years: 2019-2024
• Forecast Period: 2025-2033

South Korea Artificial Intelligence Market Key Takeaways

• The market size was USD 3.12 Billion in 2024.
• The compound annual growth rate (CAGR) is 26.60% from 2025 to 2033.
• The forecast period spans from 2025 to 2033.
• Rising adoption of AI in healthcare for early diagnosis, personalized treatments, and automated surgeries is transforming patient care.
• AI integration in financial services enhances banking automation, fraud detection, and investment decisions.
• Expanding applications of AI in semiconductor manufacturing drive demand for advanced chips powering autonomous and smart devices.
• Government investment of USD 6.94 Billion through 2027 aims to maintain global leadership in AI semiconductors.

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Market Growth Factors

The South Korea artificial intelligence market growth is primarily driven by rising investments in AI-oriented semiconductors. Regional technology companies and government agencies focus heavily on developing AI chips that enable real-time data processing and enhance machine learning tasks. In April 2024, the South Korean government announced an allocation of 9.4 trillion Won (USD 6.94 Billion) for AI development by 2027 to maintain a global lead in advanced semiconductor chips. This initiative aims to stimulate innovation in next-generation artificial general intelligence (AGI) and safety technologies beyond existing designs.

The healthcare sector in South Korea is rapidly adopting AI for enhanced diagnostics, personalized treatment, and improved surgical precision. AI-enabled imaging technologies allow faster analysis of medical scans, and chatbots improve patient communication. Additionally, AI accelerates pharmaceutical R&D for drug discovery and caters to the country’s aging population via remote monitoring and predictive analytics. These applications collectively transform healthcare delivery and drive market expansion.

Financial services leverage AI for automating customer service through chatbots and virtual assistants, risk assessment, real-time fraud detection, and tailored financial advice. The use of machine learning algorithms to analyze customer spending patterns and AI-driven credit scoring systems expedites loan approvals, enhancing banking accessibility. Automated trading platforms and robo-advisors further support data-driven investment decisions, making AI integration essential in the BFSI sector’s growth.

Market Segmentation

Analysis by Offering:

• Hardware: Includes processors, GPUs, AI chips, and edge computing devices used in AI applications. Increasing demand for high-performance AI hardware supports deep learning and machine learning tasks, with South Korean firms developing AI-specific chips.
• Software: Encompasses AI platforms, machine learning frameworks, and deep learning algorithms integrated into finance, healthcare, and manufacturing for automation and decision-making.
• Services: Covers consulting, deployment, and maintenance services aiding AI solution integration. AI-as-a-service (AIaaS) models and government-private partnerships enhance AI capabilities through training and R&D support.

Analysis by Technology:

• Machine Learning: Enables systems to learn from data and automate decisions, widely used for fraud detection, personalized recommendations, and medical diagnostics.
• Natural Language Processing: Important for AI chatbots, voice assistants, and translation tools; enhances customer interaction and support in finance, healthcare, and entertainment.

Analysis by End Use Industry:

• IT and Telecom: Employ AI for network optimization, cybersecurity, predictive maintenance, and enhancing user experience with automated customer services.
• Healthcare: Uses AI for diagnostics, personalized treatments, medical imaging, drug discovery, predictive analytics, and robotic surgery.
• Retail and E-Commerce: Adopts AI for personalized shopping, inventory management, demand forecasting, chatbots, and pricing tools.
• Logistics and Transportation: Implements AI for route optimization, fleet management, autonomous vehicles, and warehouse automation.
• Manufacturing: Integrates AI to boost productivity, quality control, predictive maintenance, and smart factory initiatives.
• Consumer Electronics: Develops smart devices with voice recognition, AI-driven recommendations, and production automation.
• BFSI: Utilizes AI for fraud detection, risk management, customer service automation, robo-advisors, and credit scoring.

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Regional Insights

The dominant region is the Seoul Capital Area, recognized for its concentration of AI startups, research institutions, major universities, and government innovation hubs. Companies in Seoul integrate AI across finance, healthcare, and retail sectors. The region also leads in smart city projects, autonomous vehicle testing, and AI-driven urban planning initiatives, positioning it as the primary AI development and deployment hub in South Korea.

Recent Developments & News

• February 2025: Open AI partnered with Kakao to create AI products leveraging ChatGPT technology.
• December 2024: KT launched a new AI-driven film production division and appointed an AI specialist leader.
• July 2024: Pixellot collaborated with KT Skylife and HCN to transform sports broadcasting with AI.
• April 2024: Samsung Electronics unveiled its 2024 Bespoke AI home appliances collection in Seoul.
• March 2024: Rebellions partnered with Samsung and KT to mass-produce AI chips (ATOM) for language models.
• February 2024: Baskin-Robbins opened a new Seoul store using AI for unique ice cream flavor development.

Key Players

• Dow Jones Newswires
• Open AI
• Kakao
• KT
• Pixellot
• KT Skylife
• HCN
• Samsung Electronics
• Rebellions
• BR Korea (brand operator for 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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