AI giant OpenAI makes its debut in Seoul, sparking new rivalries in South Korea's AI competition
OpenAI, the renowned AI research laboratory, has made a strategic move by launching its Korean subsidiary, marking its third office in Asia and the 12th worldwide. This expansion is seen as a calculated move to influence Korea's emerging regulatory norms from within, and to tap into the country's potential as an ideal hub for AI innovation.
Jason Kwon, OpenAI's chief strategy officer, has expressed his belief that Korea is an ideal hub for AI innovation. The country is increasingly seen as a prime testbed for next-generation AI technologies, and the Korean government has declared 2025 as the inaugural year of becoming a 'global AI powerhouse.' With ambitious policy roadmaps and funding programs to bolster domestic innovation, Korea offers a fertile ground for AI development.
Rumours have been circulating about a possible equity stake involving Kakao founder Kim Beom-su and OpenAI. Kakao, a South Korean internet company best known for its flagship messaging app, KakaoTalk, is set to introduce ChatGPT-powered features directly into its app as part of a strategic partnership with OpenAI. This partnership is seen as a preemptive step to navigate legal hurdles and forge early partnerships, with the basic law on artificial intelligence set to take effect in January 2026.
However, concerns are mounting within the local industry that partnerships between domestic companies and OpenAI could hinder the development of Korea's independent AI capabilities. If OpenAI dominates Korea's AI infrastructure, there is a risk of over-reliance on US-based platforms. Continued investment in homegrown AI technologies is essential to maintain the autonomy and long-term competitiveness of Korea's AI sector.
OpenAI's goal is not just to scale its user base, but also to secure a seat at the table, to shape the rules, define compliance, and embed itself in Korea's digital policy architecture. The company's local presence is seen as a preemptive step to navigate legal hurdles and forge early partnerships.
OpenAI has already unveiled strategic partnerships with leading Korean companies, including Kakao, SK Telecom, LG Electronics, Krafton, and Yanolja. Future collaborations with tech giants such as Samsung Electronics and SK Group are being speculated. The Korean AI market, valued at $3.12 billion in 2024, is projected to surge to $30 billion by 2033, providing ample opportunities for growth and innovation.
As OpenAI establishes its roots in Korea, the country's rapidly advancing AI ecosystem is set to witness fresh momentum and competition. The stakes are high, as unless Korean AI companies make meaningful strides in developing their own models and core technologies, they risk losing ground in the fast-evolving global AI race. The future of AI in Korea promises to be an exciting and dynamic landscape, as the industry navigates the balance between collaboration and independence.
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