Global AI Giants Expand Presence in South Korea

Global AI leaders including Anthropic, OpenAI, and Google are expanding their physical presence in South Korea to capture a market with the world’s fastest-growing generative AI adoption rate. According to the MS Economy Institute, Korea’s generative AI usage reached 37.1%, fueled by a high concentration of semiconductor infrastructure and surging B2B demand.

Why are global AI firms expanding into South Korea?

South Korea offers a unique combination of high consumer adoption and critical hardware infrastructure. The MS Economy Institute’s “Q1 2026 AI Diffusion Report” states that Korea’s generative AI usage rose by 6.4 percentage points to 37.1%, ranking 16th globally. This represents the highest growth rate of any country tracked in the report.

Beyond user numbers, the physical ecosystem attracts these firms. The presence of Samsung Electronics and SK Hynix—the world’s primary producers of AI-essential semiconductors—alongside advanced data centers and network infrastructure, allows global firms to deploy services more efficiently.

Which AI companies have established Korean operations?

Several major players have moved from remote service delivery to local physical offices. Anthropic recently opened its fourth global office in Korea, following similar moves in Japan, India, and Australia. OpenAI established its Korean branch in September of last year to launch products for educational institutions and corporations.

Cohere, a Canadian firm founded by former Google engineers, opened its Korean office in July of last year as part of an Asian expansion. European and Chinese firms are following suit:

• Mistral AI (France): Currently recruiting staff in Seoul to prepare for a formal entry.
• MiniMax (China): Targeting Korean webtoon, short-form content, and web-drama producers.
• Zhipu AI (China): Signed a Memorandum of Understanding (MOU) with venture capital firm The Ventures to provide Large Language Models (LLMs) to local companies.

How do foreign AI tools compare to local Korean services?

Foreign services currently dominate the Korean market. A survey of 2,500 adults by the Ministry of Science and ICT found that 68.1% of users prefer OpenAI’s ChatGPT, while 13.8% use Google’s Gemini. Combined, these two services hold an 81.9% market share.

Monthly Active User (MAU) data from Wiseapp·Retail as of April highlights the gap between the top three apps:

Local tech giants are pivoting their strategies to survive. Naver shut down its Clova X chatbot in April after it struggled to compete with ChatGPT and Gemini. Naver is now pursuing an “on-service AI” strategy, integrating AI features directly into its search and briefing tabs. Kakao is employing a hybrid approach, offering “ChatGPT for Kakao” alongside its own model-based service, “Kanana in KakaoTalk.”

What happens next for Korea’s AI sovereignty?

The reliance on foreign models creates a strategic vulnerability. While domestic firms are developing their own LLMs, they often lack the general-purpose versatility of global leaders. This leads to a pattern where Korean companies embed foreign models into their internal systems rather than relying solely on domestic alternatives.

The entry of Chinese firms like MiniMax and Zhipu AI suggests that the competition is shifting toward niche content markets, such as the webtoon industry, where specialized AI can generate revenue more quickly than general chatbots.

Frequently Asked Questions

Which AI app is most popular in South Korea?
According to Wiseapp·Retail data from April, ChatGPT is the most used, with 23.45 million monthly active users.

Why did Naver end Clova X?
The service struggled to gain a distinct presence against global competitors like ChatGPT and Gemini, leading Naver to shift toward integrating AI directly into its existing services.

Are Chinese AI companies entering Korea?
Yes. MiniMax is targeting content creators, and Zhipu AI has partnered with The Ventures to offer LLMs to Korean businesses.