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    South Korea Application Modernization Services Market

    ID: MRFR/ICT/57082-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    South Korea Application Modernization Services Market Research Report By Vertical (Healthcare, IT, Telecommunications, Energy and utilities, Manufacturing, Consumer goods and retail), By Deployment Type (Hybrid cloud, Private cloud, Public cloud) and By Application (Post modernization, Application portfolio assignment, UI modernization, Cloud application mitigation, Application integration, Application re-platforming)- Forecast to 2035

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    South Korea Application Modernization Services Market Research Report- Forecast to 2035 Infographic
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    Table of Contents

    South Korea Application Modernization Services Market Summary

    The South Korea Application Modernization Services market is poised for substantial growth, projected to reach 1687.5 USD Million by 2035 from a base of 285 USD Million in 2024.

    Key Market Trends & Highlights

    South Korea Application Modernization Services Key Trends and Highlights

    • The market is expected to grow from 285 USD Million in 2024 to 1687.5 USD Million by 2035.
    • A compound annual growth rate (CAGR) of 17.55% is anticipated from 2025 to 2035.
    • This growth trajectory indicates a robust demand for modernization services across various sectors in South Korea.
    • Growing adoption of cloud computing due to the increasing need for operational efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 285 (USD Million)
    2035 Market Size 1687.5 (USD Million)
    CAGR (2025-2035) 17.55%

    Major Players

    POSCO ICT, NHN, Samsung SDS, SK Telecom, Daou Technology, KT Corporation, SK C&C, LG CNS

    South Korea Application Modernization Services Market Trends

    Driven by the fast acceptance of cloud technologies and digital transformation projects across several industries, the South Korea Application Modernizing Services Market is seeing a notable increase. Through programs like the "Digital New Deal," which seeks to improve the nation's digital infrastructure and, therefore, stimulate the economy, the South Korean government has been pushing for digital innovation. This drive toward modernization is motivating companies to overhaul outdated systems, so the need for application modernization services grows. In a constantly changing digital scene, businesses in South Korea are realizing they must keep competitive advantages, increase operational efficiency, and improve customer experience.

    The integration of artificial intelligence and machine learning into modernized apps presents chances to be investigated as it may provide customized experiences and simplify processes. Services that not only migrate but also re-architect current applications to properly exploit these new technologies as companies want to use data analytics for improved decision-making. Further driving the need for application modernization are IoT (Internet of Things) devices and the need for flexible and responsive digital services in areas such as retail, banking, and healthcare.

    The adoption of hybrid cloud systems that let companies in South Korea combine their on-site infrastructure with public cloud services has been noticeable in recent years. This adaptability helps companies to control expenses and grow their activities. Furthermore, influencing service delivery is a focus on security and compliance, as businesses have to follow rigorous rules and safeguard private data. By means of these developments, the South Korea Application Modernization Services Market is expected to undergo significant expansion in line with the national objective of leading in technology and innovation.

    South Korea Application Modernization Services Market Drivers

    Market Segment Insights

    South Korea Application Modernization Services Market Segment Insights

    South Korea Application Modernization Services Market Segment Insights

    Application Modernization Services Market Vertical Insights

    Application Modernization Services Market Vertical Insights

    The South Korea Application Modernization Services Market, particularly within the Vertical segment, has been experiencing notable growth due to various industry demands and technological advancements. Different sectors are recognizing the need for application modernization to streamline operations, enhance customer experiences, and remain competitive. 

    Healthcare is becoming increasingly focused on integrating modern applications to improve patient care and data management, responding to the digital shift in medical services. The IT sector plays a pivotal role in driving innovation and efficiency, with organizations seeking to update legacy systems to adopt cloud-native architectures and agile methodologies. Telecommunications is also adapting by modernizing applications to support enhanced connectivity and improved subscriber services as the industry transitions to 5G networks. In the Energy and Utilities sector, modernization is critical for enabling real-time data analytics and efficient management of resources, especially as South Korea aims for sustainable energy solutions. 

    The Manufacturing sector benefits from modern applications through automation and real-time monitoring systems, helping industries maximize productivity and reduce operational costs. In the Consumer Goods and Retail space, personalization and enhanced customer interactions drive the demand for modernized applications, providing significant value as companies adapt to shifting consumer behaviors. Overall, the vertical segmentation of the South Korea Application Modernization Services Market showcases a diverse range of opportunities, driven by the unique needs of each industry in leveraging technology to achieve operational excellence.

    Source: Primary Research, Secondary Research, Market Research Future Database and Analyst Review

    Application Modernization Services Market Deployment Type Insights

    Application Modernization Services Market Deployment Type Insights

    The Deployment Type segment within the South Korea Application Modernization Services Market has gained significant traction due to the evolving technological landscape and increasing demand for efficient and scalable solutions. Hybrid cloud solutions are becoming increasingly popular as they offer the flexibility of integrating on-premises infrastructure with cloud services, allowing businesses to optimize resources and manage costs effectively. Private cloud solutions are desirable for organizations requiring enhanced security and control over their data, making it an attractive option for industries such as finance and healthcare.

    Public cloud services drive market growth by providing cost-effective scalability and accessibility, enabling companies to focus on core business functions while leveraging advanced cloud technologies. The increasing adoption of these deployment types is influenced by the rapid digital transformation initiatives in South Korea, driven by government support for innovation in the IT sector.

    Furthermore, businesses are faced with the challenge of ensuring data privacy and compliance, making the deployment type a crucial aspect of the overall strategy in application modernization.This landscape presents numerous opportunities for service providers to offer tailored solutions that cater to distinct organizational needs, fueling further advancements in South Korea Application Modernization Services Market revenue and segmentation.

    Application Modernization Services Market Application Insights

    Application Modernization Services Market Application Insights

    The South Korea Application Modernization Services Market is witnessing a significant transformation, driven primarily by the increasing need for businesses to enhance their operational efficiencies and adapt to rapid technological advancements. The Application segment is pivotal as organizations are focusing on various strategies to modernize existing applications. Major activities include Post modernization, where applications are upgraded to meet contemporary operational demands. Application portfolio assignment plays a critical role in evaluating and reallocating resources optimally, ensuring that businesses are aligned with current market trends.

    Furthermore, UI modernization is crucial for improving user experiences, facilitating better engagement and retention. Cloud application mitigation continues to gain traction due to the shift towards cloud computing, enabling organizations to reduce costs and improve scalability. Application integration helps unify disparate systems, allowing for better data management and workflow optimization. Lastly, Application re-platforming supports organizations in migrating legacy systems to more sustainable technologies, thus extending their functional lifespan.The continual investment in these areas reflects the evolving landscape in South Korea, where businesses prioritize agility and technological integration to remain competitive in an increasingly digital economy.

    Get more detailed insights about South Korea Application Modernization Services Market Research Report- Forecast to 2035

    Regional Insights

    Key Players and Competitive Insights

    The South Korea Application Modernization Services Market is characterized by a rapidly evolving landscape where technological advancements and changing customer expectations drive the need for innovative solutions. Companies in this sector are focusing on optimizing their application portfolios to improve efficiency, security, and compliance within existing systems. As organizations seek to enhance their digital transformation efforts, the application modernization services market is witnessing substantial growth. Competitive dynamics in this market are influenced by factors such as service diversity, technological expertise, and strategic partnerships. 

    Players within this sector are actively developing solutions that support cloud migration, application re-engineering, and modernization of legacy systems while addressing the unique needs of South Korean enterprises.POSCO ICT stands out in the South Korea Application Modernization Services Market with its robust offerings and strong market presence. The company leverages its extensive experience in leveraging information technology to modernize applications across various industries. 

    Known for its commitment to quality and innovation, POSCO ICT facilitates seamless digital transformations, allowing businesses to improve operational efficiency and enhance customer experiences. Its strengths lie in its comprehensive understanding of local market dynamics and its ability to provide tailored solutions that meet specific business requirements. The company's established reputation and solid infrastructure position it as a key player in helping organizations adopt modernized applications that align with their strategic goals, thus contributing to wider industry advancements.

    NHN is another significant player in the South Korea Application Modernization Services Market, focusing on various technologies that cater to digital needs. NHN provides a diverse range of services, including cloud computing, data analytics, and IT infrastructure management that are critical in supporting application modernization efforts across multiple sectors. The company's strengths are its agile service delivery and organizational capability in leveraging data to inform modernization strategies. Through consistent investments in research and development, NHN strengthens its service offerings, which has facilitated strategic partnerships and collaborations. 

    Furthermore, the company has engaged in mergers and acquisitions to fortify its market position and expand its portfolio, thereby enhancing its competitive edge in South Korea. The emphasis on innovation and specialization ensures that NHN maintains relevance and leadership in this dynamic market landscape.

    Key Companies in the South Korea Application Modernization Services Market market include

    Industry Developments

    Recent developments in the South Korea Application Modernization Services Market indicate robust growth and competitive dynamics among major companies like POSCO ICT, NHN, Samsung SDS, and SK Telecom. In September 2023, Samsung SDS announced an increase in investment towards cloud services to enhance its application modernization capabilities, aligning with national initiatives aimed at digital transformation. 

    Meanwhile, in October 2023, SK C&C launched a new agile development framework, promoting faster application deployment and modernization practices among its clientele.. The market has shown an overall positive growth trajectory, with firms like LG CNS and Daou Technology expanding their portfolios to include AI-driven modernization solutions. 

    Last year, in November 2022, CJ OliveNetworks secured a significant contract to modernize public sector applications, reflecting the increasing demand for modernization across various industries. The South Korean government has recognized the importance of digital innovation, further propelling the expansion of application modernization services among these key players in the region.

    Market Segmentation

    Application Modernization Services Market Vertical Outlook

    • Healthcare
    • IT
    • Telecommunications
    • Energy and utilities
    • Manufacturing
    • Consumer goods and retail

    Application Modernization Services Market Application Outlook

    • Post modernization
    • Application portfolio assignment
    • UI modernization
    • Cloud application mitigation
    • Application integration
    • Application re-platforming

    Application Modernization Services Market Deployment Type Outlook

    • Hybrid cloud
    • Private cloud
    • Public cloud

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 244.63(USD Million)
    MARKET SIZE 2024 285.0(USD Million)
    MARKET SIZE 2035 1687.5(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 17.549% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED POSCO ICT, NHN, Samsung SDS, SK Telecom, Webzen, Hancom, CJ OliveNetworks, Hana Financial Group, Daou Technology, Netmarble, LG Electronics, KT Corporation, NCSOFT, SK C&C, LG CNS
    SEGMENTS COVERED Vertical, Deployment Type, Application
    KEY MARKET OPPORTUNITIES Cloud migration services demand, Legacy system integration solutions, Increased compliance and security needs, Agile development methodologies adoption, Enhanced customer experience platforms
    KEY MARKET DYNAMICS growing cloud adoption, legacy system challenges, increasing demand for agility, focus on cost optimization, need for enhanced security
    COUNTRIES COVERED South Korea

    Market Highlights

    Author
    Aarti Dhapte
    Team Lead - Research

    She holds an experience of about 6+ years in Market Research and Business Consulting, working under the spectrum of Information Communication Technology, Telecommunications and Semiconductor domains. Aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. Her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.

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    FAQs

    What is the projected market size of the South Korea Application Modernization Services Market in 2024?

    The projected market size of the South Korea Application Modernization Services Market in 2024 is 285.0 USD Million.

    What is the expected market size for the South Korea Application Modernization Services Market by 2035?

    By 2035, the market is expected to grow to 1687.5 USD Million.

    What is the expected compound annual growth rate (CAGR) for the South Korea Application Modernization Services Market from 2025 to 2035?

    The expected CAGR for the South Korea Application Modernization Services Market from 2025 to 2035 is 17.549 %.

    Which vertical has the highest projected market value in 2035 within the South Korea Application Modernization Services Market?

    The IT vertical is projected to have the highest market value of 510.0 USD Million in 2035.

    What market value is expected for the Healthcare vertical in the South Korea Application Modernization Services Market by 2035?

    The Healthcare vertical is expected to reach a market value of 240.0 USD Million by 2035.

    Who are some of the key players in the South Korea Application Modernization Services Market?

    Key players include POSCO ICT, NHN, Samsung SDS, and SK Telecom among others.

    What is the projected market value for the Telecommunications vertical by 2035?

    The Telecommunications vertical is projected to reach a market value of 270.0 USD Million by 2035.

    What significant growth opportunities exist in the South Korea Application Modernization Services Market?

    Significant growth opportunities exist due to increasing digital transformation across various sectors.

    How much is the Manufacturing vertical valued at in 2024 for the South Korea Application Modernization Services Market?

    The Manufacturing vertical is valued at 75.0 USD Million in 2024.

    What is the expected market value of Energy and Utilities vertical in 2035?

    The Energy and Utilities vertical is expected to have a market value of 240.0 USD Million by 2035.

    1. EXECUTIVE
    2. SUMMARY
    3. Market Overview
    4. Key Findings
    5. Market Segmentation
    6. Competitive Landscape
    7. Challenges and Opportunities
    8. Future Outlook
    9. MARKET INTRODUCTION
    10. Definition
    11. Scope of the study
    12. Research Objective
    13. Assumption
    14. Limitations
    15. RESEARCH
    16. METHODOLOGY
    17. Overview
    18. Data
    19. Mining
    20. Secondary Research
    21. Primary
    22. Research
    23. Primary Interviews and Information Gathering
    24. Process
    25. Breakdown of Primary Respondents
    26. Forecasting
    27. Model
    28. Market Size Estimation
    29. Bottom-Up
    30. Approach
    31. Top-Down Approach
    32. Data
    33. Triangulation
    34. Validation
    35. MARKET
    36. DYNAMICS
    37. Overview
    38. Drivers
    39. Restraints
    40. Opportunities
    41. MARKET FACTOR ANALYSIS
    42. Value chain Analysis
    43. Porter's
    44. Five Forces Analysis
    45. Bargaining Power of Suppliers
    46. Bargaining
    47. Power of Buyers
    48. Threat of New Entrants
    49. Threat
    50. of Substitutes
    51. Intensity of Rivalry
    52. COVID-19
    53. Impact Analysis
    54. Market Impact Analysis
    55. Regional
    56. Impact
    57. Opportunity and Threat Analysis
    58. South
    59. Korea Application Modernization Services Market, BY Vertical (USD Million)
    60. Healthcare
    61. IT
    62. Telecommunications
    63. Energy
    64. and utilities
    65. Manufacturing
    66. Consumer
    67. goods and retail
    68. South Korea
    69. Application Modernization Services Market, BY Deployment Type (USD Million)
    70. Hybrid
    71. cloud
    72. Private cloud
    73. Public
    74. cloud
    75. South Korea Application
    76. Modernization Services Market, BY Application (USD Million)
    77. Post
    78. modernization
    79. Application portfolio assignment
    80. UI
    81. modernization
    82. Cloud application mitigation
    83. Application
    84. integration
    85. Application re-platforming
    86. Competitive Landscape
    87. Overview
    88. Competitive
    89. Analysis
    90. Market share Analysis
    91. Major
    92. Growth Strategy in the Application Modernization Services Market
    93. Competitive
    94. Benchmarking
    95. Leading Players in Terms of Number of Developments
    96. in the Application Modernization Services Market
    97. Key
    98. developments and growth strategies
    99. New Product Launch/Service
    100. Deployment
    101. Merger & Acquisitions
    102. Joint
    103. Ventures
    104. Major Players Financial Matrix
    105. Sales
    106. and Operating Income
    107. Major Players R&D Expenditure.
    108. Company
    109. Profiles
    110. POSCO ICT
    111. Financial
    112. Overview
    113. Products Offered
    114. Key
    115. Developments
    116. SWOT Analysis
    117. Key
    118. Strategies
    119. NHN
    120. Financial
    121. Overview
    122. Products Offered
    123. Key
    124. Developments
    125. SWOT Analysis
    126. Key
    127. Strategies
    128. Samsung SDS
    129. Financial
    130. Overview
    131. Products Offered
    132. Key
    133. Developments
    134. SWOT Analysis
    135. Key
    136. Strategies
    137. SK Telecom
    138. Financial
    139. Overview
    140. Products Offered
    141. Key
    142. Developments
    143. SWOT Analysis
    144. Key
    145. Strategies
    146. Webzen
    147. Financial
    148. Overview
    149. Products Offered
    150. Key
    151. Developments
    152. SWOT Analysis
    153. Key
    154. Strategies
    155. Hancom
    156. Financial
    157. Overview
    158. Products Offered
    159. Key
    160. Developments
    161. SWOT Analysis
    162. Key
    163. Strategies
    164. CJ OliveNetworks
    165. Financial
    166. Overview
    167. Products Offered
    168. Key
    169. Developments
    170. SWOT Analysis
    171. Key
    172. Strategies
    173. Hana Financial Group
    174. Financial
    175. Overview
    176. Products Offered
    177. Key
    178. Developments
    179. SWOT Analysis
    180. Key
    181. Strategies
    182. Daou Technology
    183. Financial
    184. Overview
    185. Products Offered
    186. Key
    187. Developments
    188. SWOT Analysis
    189. Key
    190. Strategies
    191. Netmarble
    192. Financial
    193. Overview
    194. Products Offered
    195. Key
    196. Developments
    197. SWOT Analysis
    198. Key
    199. Strategies
    200. LG Electronics
    201. Financial
    202. Overview
    203. Products Offered
    204. Key
    205. Developments
    206. SWOT Analysis
    207. Key
    208. Strategies
    209. KT Corporation
    210. Financial
    211. Overview
    212. Products Offered
    213. Key
    214. Developments
    215. SWOT Analysis
    216. Key
    217. Strategies
    218. NCSOFT
    219. Financial
    220. Overview
    221. Products Offered
    222. Key
    223. Developments
    224. SWOT Analysis
    225. Key
    226. Strategies
    227. SK C&C
    228. Financial
    229. Overview
    230. Products Offered
    231. Key
    232. Developments
    233. SWOT Analysis
    234. Key
    235. Strategies
    236. LG CNS
    237. Financial
    238. Overview
    239. Products Offered
    240. Key
    241. Developments
    242. SWOT Analysis
    243. Key
    244. Strategies
    245. References
    246. Related
    247. Reports
    248. LIST
    249. OF ASSUMPTIONS
    250. South Korea Application Modernization
    251. Services Market SIZE ESTIMATES & FORECAST, BY VERTICAL, 2019-2035 (USD Billions)
    252. South
    253. Korea Application Modernization Services Market SIZE ESTIMATES & FORECAST, BY
    254. DEPLOYMENT TYPE, 2019-2035 (USD Billions)
    255. South Korea
    256. Application Modernization Services Market SIZE ESTIMATES & FORECAST, BY APPLICATION,
    257. 2035 (USD Billions)
    258. PRODUCT LAUNCH/PRODUCT DEVELOPMENT/APPROVAL
    259. ACQUISITION/PARTNERSHIP
    260. LIST
    261. Of figures
    262. MARKET SYNOPSIS
    263. SOUTH
    264. KOREA APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY VERTICAL
    265. SOUTH
    266. KOREA APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY DEPLOYMENT TYPE
    267. SOUTH
    268. KOREA APPLICATION MODERNIZATION SERVICES MARKET ANALYSIS BY APPLICATION
    269. KEY
    270. BUYING CRITERIA OF APPLICATION MODERNIZATION SERVICES MARKET
    271. RESEARCH
    272. PROCESS OF MRFR
    273. DRO ANALYSIS OF APPLICATION MODERNIZATION
    274. SERVICES MARKET
    275. DRIVERS IMPACT ANALYSIS: APPLICATION
    276. MODERNIZATION SERVICES MARKET
    277. RESTRAINTS IMPACT ANALYSIS:
    278. APPLICATION MODERNIZATION SERVICES MARKET
    279. SUPPLY / VALUE
    280. CHAIN: APPLICATION MODERNIZATION SERVICES MARKET
    281. APPLICATION
    282. MODERNIZATION SERVICES MARKET, BY VERTICAL, 2025 (% SHARE)
    283. APPLICATION
    284. MODERNIZATION SERVICES MARKET, BY VERTICAL, 2019 TO 2035 (USD Billions)
    285. APPLICATION
    286. MODERNIZATION SERVICES MARKET, BY DEPLOYMENT TYPE, 2025 (% SHARE)
    287. APPLICATION
    288. MODERNIZATION SERVICES MARKET, BY DEPLOYMENT TYPE, 2019 TO 2035 (USD Billions)
    289. APPLICATION
    290. MODERNIZATION SERVICES MARKET, BY APPLICATION, 2025 (% SHARE)
    291. APPLICATION
    292. MODERNIZATION SERVICES MARKET, BY APPLICATION, 2019 TO 2035 (USD Billions)
    293. BENCHMARKING
    294. OF MAJOR COMPETITORS

    South Korea Application Modernization Services Market Segmentation

     

     

     

    • Application Modernization Services Market By Vertical (USD Million, 2019-2035)

      • Healthcare
      • IT
      • Telecommunications
      • Energy and utilities
      • Manufacturing
      • Consumer goods and retail

     

    • Application Modernization Services Market By Deployment Type (USD Million, 2019-2035)

      • Hybrid cloud
      • Private cloud
      • Public cloud

     

    • Application Modernization Services Market By Application (USD Million, 2019-2035)

      • Post modernization
      • Application portfolio assignment
      • UI modernization
      • Cloud application mitigation
      • Application integration
      • Application re-platforming

     

     

     

     

     

     

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