South Korea Generative AI Market

South Korea Generative AI Market Outlook:

The South Korea generative AI market size reached USD 277.59 Million in 2024. Looking forward, the market is expected to reach USD 1,348.08 Million by 2033, exhibiting a growth rate (CAGR) of 17.12% during 2025-2033. The market is driven by strong technological foundations, widespread enterprise adoption, and dedicated government support for AI innovation. Key industries including entertainment, e-commerce, and manufacturing are rapidly integrating generative models to improve content creation and operational workflows. Additionally, ethical AI initiatives and regulatory advancements are fostering responsible deployments, further augmenting the South Korea generative AI market share.

South Korea Generative AI Market Trends:

Growing Adoption Across Entertainment, E-commerce, and Manufacturing

The adoption of generative AI in South Korea is particularly significant across entertainment, e-commerce, and advanced manufacturing industries. South Korea’s global influence in music, film, and gaming has created a strong demand for generative tools that assist in content creation, scriptwriting, animation, and post-production editing. In early 2025, government data revealed that generative AI users in South Korea nearly doubled from 17.6% to 33.3% of internet users, and combined usage time across major services reached a record 900 million minutes in December 2024 more than eight times that of December 2023. E-commerce giants are leveraging generative models for personalized product recommendations, chat-based customer service, and dynamic marketing campaigns. The manufacturing sector benefits from AI-driven product design optimization, predictive maintenance, and generative simulations for operational efficiency. In education, generative AI is being incorporated into learning platforms to provide personalized study materials, language tutoring, and automated content creation for educators. Additionally, the domestic demand for language-specific AI models is accelerating efforts to build Korean-language-centric generative tools. These advancements are helping local enterprises streamline workflows, reduce costs, and improve the customer experience. As digital industries and traditional sectors increasingly integrate generative AI, South Korea is reinforcing its position as a pioneer in AI-driven digital transformation. These coordinated efforts are enhancing the country’s competitive standing across global technology markets and directly supporting South Korea generative AI market growth.

Government-Led Innovation and Responsible AI Initiatives

South Korea’s government has been proactive in promoting artificial intelligence as a key driver of future economic competitiveness, with specific emphasis on responsible AI development. The National AI Strategy, announced in 2019, provides a comprehensive framework for fostering research excellence, nurturing AI talent, and creating ethical guidelines for generative technologies. Public sector investments are funding AI innovation hubs, national supercomputing resources, and specialized university programs aimed at producing skilled generative AI developers. Ethical guidelines for generative AI are evolving to address concerns around misinformation, data bias, and content originality. Regulatory frameworks emphasize transparency and accountability, supporting safe deployments in both public and private sectors. Collaboration between regulatory bodies and industry leaders ensures alignment between innovation goals and responsible practices. As part of the latest high-level consultative council on artificial intelligence strategy, MSIT projects that successful AI integration across sectors will generate KRW 310 trillion (USD ~234 billion) annually by 2026. Of this, KRW 123 trillion will come from new AI-driven products, while KRW 185 trillion is expected from cost savings. Sector contributions include KRW 136 trillion (44.4%) from services, KRW 77 trillion (25.2%) from manufacturing, and KRW 24 trillion (7.8%) from ICT. The overall economic boost could raise Korea’s GDP growth by 1.8 percentage points per year. Furthermore, South Korean tech firms are increasingly participating in global discussions on generative AI governance, strengthening international partnerships. These cohesive strategies are positioning South Korea to harness generative AI responsibly while expanding its influence in global AI markets.

South Korea Generative AI Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on offering type, technology type, and application.

Offering Type Insights:

• Image
• Video
• Speech
• Others

The report has provided a detailed breakup and analysis of the market based on the offering type. This includes image, video, speech, and others.

Technology Type Insights:

• Autoencoders
• Generative Adversarial Networks
• Others

The report has provided a detailed breakup and analysis of the market based on the technology type. This includes autoencoders, generative adversarial networks, and others.

Application Insights:

• Healthcare
• Generative Intelligence
• Media and Entertainment
• Others

The report has provided a detailed breakup and analysis of the market based on the application. This includes healthcare, generative intelligence, media and entertainment, and others.

Regional Insights:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others

The report has also provided a comprehensive analysis of all major regional markets. This includes Seoul Capital Area, Yeongnam (Southeastern Region), Honam (Southwestern Region), Hoseo (Central Region), and others.

Competitive Landscape:

The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

South Korea Generative AI Market News:

• On September 24, 2024, Kore.ai launched RecruitAssist, an advanced AI recruitment platform designed to streamline hiring workflows with enriched candidate profiles, real-time interview co-pilot functions, and bias-reducing features. The platform’s emphasis on DEI (Diversity, Equity, Inclusion) and AI-powered personalization reflects a growing trend in the South Korean generative AI landscape, especially with Seoul emerging as a critical AI innovation hub. This development aligns with South Korea’s rising adoption of advanced generative AI solutions across HR and enterprise sectors.
• On August 24, 2023, South Korean internet firm Naver announced the launch of its generative AI product HyperCLOVA X, featuring tools such as chatbot CLOVA X and generative search engine plugin Cue:, with beta services beginning immediately and expanding in September. While competing with leaders like OpenAI and Google, Naver’s strategy targets non-English speaking markets such as Japan, Southeast Asia, and politically sensitive regions like the Middle East.

South Korea Generative AI Market Report Coverage:

Key Questions Answered in This Report:

• How has the South Korea generative AI market performed so far and how will it perform in the coming years?
• What is the breakup of the South Korea generative AI market on the basis of offering type?
• What is the breakup of the South Korea generative AI market on the basis of technology type?
• What is the breakup of the South Korea generative AI market on the basis of application?
• What is the breakup of the South Korea generative AI market on the basis of region?
• What are the various stages in the value chain of the South Korea generative AI market? 
• What are the key driving factors and challenges in the South Korea generative AI market?
• What is the structure of the South Korea generative AI market and who are the key players?
• What is the degree of competition in the South Korea generative AI market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the South Korea generative AI market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the South Korea generative AI market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the South Korea generative AI industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.