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    South Korea Applied AI Market

    ID: MRFR/ICT/57284-HCR
    200 Pages
    Aarti Dhapte
    October 2025

    South Korea Applied AI Market Research Report By Components (Software, Services) and By Application (Healthcare, Finance, Retail and E-commerce, Predictive maintenance, Industrial robotics, Natural Language Processing, Energy and Utilities, Agriculture, Cybersecurity, Education, Entertainment and Media, Real Estate, Transportation and Logistics, Environmental Monitoring, Human Resources, Others)- Forecast to 2035

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    South Korea Applied AI Market Infographic
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    South Korea Applied AI Market Summary

    The South Korea Applied AI market is poised for substantial growth, expanding from 5.23 USD Billion in 2024 to 18 USD Billion by 2035.

    Key Market Trends & Highlights

    South Korea Applied AI Key Trends and Highlights

    • The South Korea Applied AI market is valued at 5.23 USD Billion in 2024.
    • By 2035, the market is projected to reach 18 USD Billion, indicating a robust growth trajectory.
    • The compound annual growth rate (CAGR) for the period from 2025 to 2035 is estimated at 11.89%.
    • Growing adoption of artificial intelligence technologies due to increasing demand for automation is a major market driver.

    Market Size & Forecast

    2024 Market Size 5.23 (USD Billion)
    2035 Market Size 18 (USD Billion)
    CAGR (2025-2035) 11.89%

    Major Players

    Samsung Electronics, SK Telecom, AhnLab, LG Electronics, Hancom Group, Naver Corporation, Daumsoft, Neowiz, Hyundai Motor Company, Kakao Corp

    South Korea Applied AI Market Trends

    Because of the nation's strong emphasis on technological innovation and government assistance, the South Korean applied artificial intelligence market is expanding significantly. The South Korean government has taken a number of steps to create an atmosphere that is conducive to the development of AI.

    As part of its Digital New Deal agenda, which aims to accelerate digital transformation across all sectors, this involves significant investments in AI research and development. The manufacturing, financial, and health sectors are especially well-positioned to use AI technologies to improve client experiences and streamline operations.

    In the middle of these initiatives, there are a lot of untapped potential in fields like AI-powered medical solutions, where predictive analytics can greatly enhance patient outcomes. AI applications that boost efficiency and cut costs are made possible by the growing need for automation in manufacturing processes.

    Additionally, South Korea's drive for smart cities is integrating AI into public safety, traffic control, and urban planning, demonstrating a trend towards employing AI to enhance urban quality of life. With stakeholders highlighting the significance of responsible AI deployment, recent trends show that South Korea is becoming more interested in AI ethics and laws.

    In order to build a strong AI ecosystem, there is also a discernible trend towards cooperation between the public and private sectors, as well as between educational institutions.

    Innovation and more specialised AI solutions that precisely address the demands of the South Korean market are anticipated to be fuelled by this partnership. Because of this, the South Korean applied AI market is developing quickly, mirroring these dynamic shifts and offering a wide range of opportunities for all parties involved.

    South Korea Applied AI

    Market Segment Insights

    South Korea Applied

    South Korea Applied AI Market Segment Insights

    Applied

    Applied AI Market Components Insights

    The Components segment of the South Korea Applied AI Market plays a pivotal role in shaping the technological landscape, showcasing a diverse spectrum that primarily encompasses Software and Services.

    The growth in this sector is driven by the increasing adoption of artificial intelligence across various industries, with organizations increasingly recognizing the potential of AI in enhancing operational efficiency and decision-making processes.

    Particularly, Software components are crucial as they form the backbone of AI systems, enabling data processing, machine learning, and sophisticated algorithms that empower businesses to leverage deep insights from their data.

    In South Korea, a burgeoning digital economy fueled by investments in Research and Development has led to a significant demand for innovative software solutions, reinforcing the need for robust AI applications across banking, healthcare, and manufacturing sectors.

    On the other hand, Services associated with the Applied AI Market are essential as they offer implementation, maintenance, and consulting support, fostering successful deployment of AI technologies.

    This aspect is becoming increasingly important as enterprises seek to integrate AI into their existing frameworks, necessitating strategic partnerships with service providers that specialize in AI solutions. The South Korean government is also playing an influential role by promoting AI initiatives and easing regulations to facilitate faster adoption and innovation in the tech ecosystem.

    Moreover, given the country's focus on advanced technologies and smart city initiatives, the dynamics between Software and Services within the Components segment continue to evolve, driven by the necessity for customized solutions and scalable infrastructures.

    Applied

    Applied AI Market Application Insights

    The South Korea Applied AI Market showcases a dynamic landscape within the Application segment, representing a substantial area of innovation and investment. Various sectors are harnessing the potential of applied artificial intelligence to enhance operations, drive efficiency, and improve customer experiences.

    In Healthcare, AI technologies support diagnostics and personalized medicine, revolutionizing patient care. The Finance sector increasingly utilizes AI for risk assessment and fraud detection, ensuring more secure transactions. Retail and e-commerce leverage AI for personalized marketing and inventory management, aiming to optimize sales and consumer engagement.

    Predictive maintenance and industrial robotics significantly improve operational efficiency in manufacturing and logistics, reducing downtime and enhancing productivity. Natural Language Processing plays a crucial role in customer interaction, enabling better engagement through chatbots and virtual assistants.

    Get more detailed insights about South Korea Applied AI Market

    Key Players and Competitive Insights

    The South Korea Applied AI Market is rapidly evolving, characterized by intense competition and continuous innovation. As businesses across various sectors leverage artificial intelligence technologies to optimize operations, enhance customer experiences, and drive growth, the market has become a focal point for technological advancements.

    The landscape is marked by a diverse range of companies that offer various AI-driven solutions, including machine learning, natural language processing, and data analytics.

    With the government’s increasing support for AI development and investment in research and development initiatives, the market is witnessing substantial investments from both domestic and international players, further intensifying competition.

    Samsung Electronics remains a heavyweight in the South Korea Applied AI Market due in large part to its extensive portfolio of AI-driven products and services. The company integrates artificial intelligence into consumer electronics, smart appliances, and mobile technology, allowing for smarter and more intuitive devices.

    Samsung’s investments in research and development, along with strategic mergers and acquisitions, have strengthened its capabilities in AI and machine learning, particularly within the South Korean market. The company is committed to innovation and often sets industry standards with its advanced AI solutions.

    Moreover, its deep understanding of consumer behavior and market dynamics enables Samsung to tailor its offerings effectively, contributing to its dominant presence in the South Korean AI space.

    This combination of technological prowess, extensive market reach, and a commitment to continuous improvement solidifies Samsung Electronics' position as a leading force in the applied AI domain in South Korea.

    Key Companies in the South Korea Applied AI Market market include

    Industry Developments

    The government's commitment to expanding compute power was demonstrated in February 2025 when it revealed intentions to acquire 10,000 GPUs to create a national AI computing centre.The establishment of the K-Humanoid Alliance in April 2025, which includes top colleges like KAIST and Seoul National University and large companies like LG and Doosan, signalled a concerted attempt to create sophisticated humanoid AI robots by 2028.

    Additionally, in May 2025, SK Group and Amazon Web Services announced a USD 5 billion joint venture to build the biggest AI data centre in the nation in Ulsan, with construction scheduled to start in September 2025. The government unveiled a ₩1.2 trillion investment plan earlier in May 2024 to advance cloud and AI capabilities related to manufacturing.

    In September 2024, the National AI Committee was established to guide AI strategy in both the public and commercial sectors. These actions align with significant business plans by Samsung, Hyundai, and LG to create autonomous robotics, AI processors, and spatial intelligence systems.

    When taken as a whole, these collaborations, strategic investments, and infrastructure development projects show a national strategy to establish South Korea as a leader in applied artificial intelligence worldwide.

    South Korea Applied AI

    Market Segmentation

    Outlook

    • Healthcare
    • Finance
    • Retail and E-commerce
    • Predictive maintenance
    • Industrial robotics
    • Natural Language Processing
    • Energy and Utilities
    • Agriculture
    • Cybersecurity
    • Education
    • Entertainment and Media
    • Real Estate
    • Transportation and Logistics
    • Environmental Monitoring
    • Human Resources
    • Others

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 4.17(USD Billion)
    MARKET SIZE 2024 5.23(USD Billion)
    MARKET SIZE 2035 18.0(USD Billion)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 11.889% (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 Billion
    KEY COMPANIES PROFILED Solasta, Samsung Electronics, SK Telecom, CureMetrix, AhnLab, SoftBank Robotics, LG Electronics, Hancom Group, Lotte Group, Naver Corporation, Daumsoft, Neowiz, Hyundai Motor Company, Kakao Corp
    SEGMENTS COVERED Components, Application
    KEY MARKET OPPORTUNITIES Healthcare AI innovations, Manufacturing automation solutions, Financial services optimization, Smart city technologies, Retail customer personalization strategies
    KEY MARKET DYNAMICS Rapid technological advancements, Government initiatives and support, Increased investment from enterprises, Rising demand for automation, Strong focus on research and development
    COUNTRIES COVERED South Korea

    FAQs

    What is the expected market size of the South Korea Applied AI Market by 2024?

    The South Korea Applied AI Market is anticipated to be valued at approximately 5.23 USD Billion by the year 2024.

    What will be the market size of the South Korea Applied AI Market in 2035?

    By 2035, the South Korea Applied AI Market is projected to reach a valuation of around 18.0 USD Billion.

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

    The South Korea Applied AI Market is expected to grow at a CAGR of 11.889% during the period from 2025 to 2035.

    What are the key players in the South Korea Applied AI Market?

    Major competitors in the South Korea Applied AI Market include companies such as Samsung Electronics, LG Electronics, and SK Telecom among others.

    What is the projected market value for software within the South Korea Applied AI Market in 2024?

    The software segment of the South Korea Applied AI Market is expected to be valued at around 2.12 USD Billion in 2024.

    What will be the market value for services in the South Korea Applied AI Market by 2035?

    The services segment is projected to reach a valuation of 10.75 USD Billion by the year 2035.

    What are the growth opportunities in the South Korea Applied AI Market?

    Significant growth opportunities exist in sectors such as healthcare, automotive, and finance within the South Korea Applied AI Market.

    What challenges does the South Korea Applied AI Market currently face?

    Current challenges in the South Korea Applied AI Market include data security issues and the need for skilled workforce in AI technologies.

    How have advancements in technology impacted the South Korea Applied AI Market?

    Advancements in technology have been driving innovation and adoption in the South Korea Applied AI Market, enhancing its growth prospects.

    What trends are emerging in the South Korea Applied AI Market?

    Emerging trends in the South Korea Applied AI Market include increased automation, improved machine learning algorithms, and application-specific AI solutions.

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