Korean AI Ecosystem Expansion Accelerates...Emerging as Global AI Hub

Following OpenAI's Seoul office establishment, Korea's artificial intelligence (AI) ecosystem is rapidly expanding. Building on global competitiveness in semiconductors, telecommunications, and platforms, Korea is emerging as an AI hub in the Asian region. With government and private sector joining hands to execute AI national strategies, the future of Korea's AI industry appears increasingly bright.

Korean AI Model Competition: Naver·Kakao·Samsung Three-Way Battle

Korean companies are accelerating development of proprietary AI models to counter OpenAI's ChatGPT. Representative models include Naver's HyperCLOVA X, Kakao's KoGPT, and Samsung Electronics' Gauss.

**Naver's HyperCLOVA X** is a Korean-specialized hyperscale AI model reportedly superior to ChatGPT in Korean language comprehension and processing capabilities. Naver is integrating HyperCLOVA X across all its services including Naver Search, Shopping, Webtoon, and Blog, evolving into an AI platform company. Naver is also opening the HyperCLOVA X API to external developers, leading Korean AI ecosystem expansion.

**Kakao's KoGPT** is being applied across the Kakao ecosystem including KakaoTalk, Kakao Map, and Kakao Pay. Particularly, KakaoTalk's AI chatbot 'AskUp' based on KoGPT provides users with real-time information and conversational services. Kakao is also expanding AI business into various fields including customized advertising, content recommendations, and financial services using KoGPT.

**Samsung Electronics' Gauss** is on-device AI embedded in Galaxy smartphones and home appliances, performing AI functions directly within devices without cloud connectivity. Gauss provides photo editing, voice recognition, translation, and text generation functions, offering advantages of privacy protection and fast response times. Samsung Electronics plans to implement complete AI smartphones by embedding Gauss 2.0 in the Galaxy S26 scheduled for release in late 2025.

AI Semiconductor Supercycle: Korea's Opportunity

AI technology's core is semiconductors. Training and servicing AI models requires enormous computing power, supported by AI semiconductors. Korea holds world-leading competitiveness in memory semiconductors, dominating the increasingly important high bandwidth memory (HBM) market in the AI era.

SK Hynix holds the number one HBM market share, exclusively supplying NVIDIA's AI accelerators. Samsung Electronics also succeeded in mass-producing HBM3E, advancing market share expansion. Both companies' HBM competition represents an intense battle for dominance in the global AI semiconductor market.

According to market research firm TrendForce, the HBM market is expected to grow explosively from approximately 7 trillion won in 2024 to 12 trillion won in 2025 and 40 trillion won by 2030. If Korean companies lead this market, they can become the greatest beneficiaries of the AI era.

Additionally, Korean companies are actively moving in AI processor (NPU, Neural Processing Unit) areas. Samsung Electronics is strengthening on-device AI performance by embedding high-performance NPUs in Exynos processors, while LX Semicon is advancing automotive AI processor development.

AI Data Center Investment Expansion: Infrastructure Competition Acceleration

Large-scale AI data centers are essential for providing AI services. Korean companies are actively investing in AI data center construction, functioning as core competitiveness elements of AI ecosystems.

**Naver** is constructing a large-scale AI data center in Chuncheon, targeting completion in 2025. This data center will support all of Naver's AI services including HyperCLOVA X, becoming Korea's largest AI computing infrastructure.

**Kakao** operates the AI data center 'Kakao Cloud Center' in Anseong, Gyeonggi Province, with plans for additional expansion. Kakao is also exploring overseas data center investments, advancing infrastructure development for global AI service provision.

**SK Telecom** is utilizing telecommunications carrier data center capabilities to build infrastructure for AI service provision. SK Telecom is providing data center infrastructure for servicing GPT models in Korea through collaboration with OpenAI, marking telecommunications carriers' evolution into AI infrastructure providers.

The Korean government is also pursuing national AI data center construction, securing computing resources to support public AI services and R&D. The Ministry of Science and ICT plans to build exaflops-class supercomputers by 2030 to accelerate AI R&D.

AI Talent Development: Industry-Academia Collaboration Strengthening

The core of AI technology competition is ultimately talent. Korean universities are successively establishing AI departments and graduate schools, advancing AI specialist training. Major universities including Seoul National University, KAIST, and POSTECH established AI graduate schools, conducting world-class AI education and research with government and corporate support.

Companies are also joining AI talent acquisition competition. Naver, Kakao, and Samsung Electronics offer high salaries and stock options to recruit global AI talent, actively pursuing overseas AI research laboratory establishment for local talent acquisition.

Industry-academia collaboration for AI talent development is also active. Naver operates AI boot camps through Naver Connect Foundation, while Kakao provides AI developer education programs through Kakao Academy. Samsung Electronics conducts world-class AI research through Samsung AI Research establishment.

The government is training over 10,000 AI and software talents annually through the 'K-Digital Training' program, also operating AI voucher programs for SMEs lacking AI specialists.

AI Ethics and Regulation: Balancing Innovation and Safety

Alongside rapid AI technology advancement, discussions on AI ethics and regulation are also active. Preventing potential AI side effects including fake news generation, privacy infringement, algorithmic bias, and job displacement while developing safe and trustworthy AI technology has emerged as an important challenge.

The Korean government legislated the 'AI Basic Act' in 2024, codifying fundamental principles for AI development and utilization. The AI Basic Act's core contents include △ensuring AI transparency △guaranteeing algorithmic fairness △strengthening privacy protection △establishing AI ethical standards.

Companies are also establishing AI ethics guidelines and operating internal AI ethics committees. Naver announced 'AI Ethics Principles,' pledging to adhere to ethical principles throughout AI development and service processes. Kakao also enacted an 'AI Ethics Charter,' working to provide user-centered safe AI services.

AI regulation must find balance between not hindering innovation while ensuring safety. Excessively strict regulations can impede AI technology development, but without regulation, AI technology risks being abused. Korea is refining AI ethics and regulatory frameworks following the 'Cautious Innovation' principle.

2030 AI Powerhouse: Korea's Vision

The Korean government presented goals to advance as a global top 3 AI powerhouse by 2030 through the '2030 AI National Strategy.' To achieve this, four major strategies are being pursued: △strengthening AI semiconductor competitiveness △fostering AI service industry △training 100,000 AI talents △establishing AI ethics and regulatory framework.

OpenAI's Seoul office establishment signifies Korea's recognition as a core player in the global AI ecosystem. Building on world-class competitiveness in semiconductors, telecommunications, and platforms, Korea possesses sufficient potential to become a leading actor in the AI era.

However, competition with global AI giants including US companies OpenAI, Google, and Microsoft, and China's Baidu, Alibaba, and Tencent is formidable. For Korea to advance as an AI powerhouse, total commitment across all areas including technological independence, global partnership strengthening, talent development, and regulatory innovation is essential.

2025 will be a turning point for Korea's AI industry. While utilizing global AI technology through collaboration with OpenAI, building Korean AI models and ecosystems to secure independent competitiveness remains Korea's AI industry challenge. Whether Korea can stand tall as an AI powerhouse, future progress will be closely watched.

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Read the original Korean article: 한국 AI 생태계 확장 가속화…글로벌 AI 허브로 도약