South Korea’s journey into AI is reshaping its tech and economic landscape, attracting global attention. This blog explores South Korea’s strategic commitment to AI and showcases how leading Korean companies are integrating AI into their operations. Discover the power and potential of AI in South Korea’s growth story.
The potential of South Korea’s AI Market
Artificial intelligence (AI) encompasses a suite of technologies enabling computers to perform complex tasks ranging from data analysis and decision-making to understanding speech and text, as well as visual recognition. Standing at the heart of modern technological advancement, AI enhances efficiency and innovation for both individuals and businesses. It includes various methods, primarily machine learning and deep learning, applied in several sectors like data analytics, object recognition, language processing, prediction, recommendation systems, and smart data extraction.
South Korea is heavily investing in AI as a crucial driver of future tech and economic growth. The South Korean government plans to inject over 1.2 trillion won ($900 million) in 2024 for the development of AI technologies and services, said First Vice Finance Minister Kim Byung-hwan at the 6th Digital Economy Forum held in Seoul on Sep 2023. According to Spherical Insights、The South Korean AI Market Size is expected to reach USD 20.7 Billion by 2032, at a CAGR of 27.5% during the forecast period 2022 to 2032.
To secure a competitive edge in the global AI arena, South Korea government in collaboration with private firms, is channeling funds into research and development, talent nurturing and infrastructure enhancement. AI applications are increasingly being used across various fields to automate and optimize processes, analyze data, and improve customer experience. South Korea has multiple world-class AI research facilities, such as the Korea Advanced Institute of Science and Technology (KAIST).
Moreover, South Korea is keen on AI education to create a skilled workforce ready to fulfill the ongoing need for AI experts. The government has launched initiatives such as the “I-Korea 4.0” strategy to encourage the integration and usage of fourth-generation technologies, including AI.
Pioneering Innovations by Top ICT Corporations
Leading Korean ICT corporations are at the forefront of embracing and advancing AI technologies. Their dedication is reshaping the industry with groundbreaking innovations:
① Samsung
Samsung has established seven AI centers across five countries, engaging in pioneering projects like developing new machine learning algorithms, AI chips, and on-device AI.
At CES 2024, Samsung introduced its “AI for All” concept, aiming to revolutionize user-device interconnectivity with spatial intelligence and SmartThings. Spatial AI enables devices to comprehend users’ living spaces and habits, facilitating personalized home management. The integration of LiDAR for digital floor plans and the enhancement of Bixby capabilities allow for more dynamic and intelligent smart home interactions, making Samsung devices increasingly efficient and user-friendly as they are used in conjunction.
② Hyundai Motor Group
In 2023, Hyundai Motor Group announced an investment valued USD 50 million in Tenstorrent, an AI semiconductor company based in Canada, which will allow the Group to integrate AI into future Hyundai, Kia and Genesis vehicles, and other future mobilities, including robotics and advanced air mobility (AAM). The investment will be used to accelerate Tenstorrent’s design and development of AI chiplets and its machine learning (ML) software roadmap.
③ LG Group
LG Group unveiled an advanced version of its AI software in July 2023, showcasing its application across various sectors from electronics to chemicals. The updated foundation model, Exaone 2.0, now processes images and learns in both Korean and English, trained on a vast dataset of academic and patent documents, along with millions of images. LG aims to commercialize Exaone across multiple industries, including healthcare and clean energy, making certain features accessible to the public.
These are just a few of various efforts that positioning Korea as a global AI powerhouse, boasting one of the most vibrant AI scaleup ecosystems worldwide, surpassing even Silicon Valley. With 376 scaleups—and an estimated 1,000 startups—Korea’s AI sector excels in deep technologies from big data to computer vision, natural language processing, and automation. Remarkably, a quarter of Korean scaleups are AI-focused, outpacing the proportions seen in Silicon Valley and Israel, highlighting Korea’s significant contribution to the AI domain.
Grow Your Business with CMC Global’s AI Solutions
CMC has significantly contributed to cross-industries clients’ business transformation through AI development. Our recent project with a major fintech company based in Singapore is an example.
The client aimed to improve their applications, with a focus on enhancing user experience and strengthening fraud detection. Our team employed a range of technologies including Java, VueJS, ReactJS, and notably, AI, which was crucial in boosting fraud detection, preventing financial crimes, and ensuring secure transactions.
This collaboration led to impressive results: a 30% increase in customer retention and satisfaction and notably, a 70% decrease in fraudulent activities – thus safeguarding the financial ecosystem. Moreover, our effective use of AWS infrastructure allowed for the smooth processing of over 1 million transactions daily.
CMC consistently strives to deliver innovative solutions that not only fulfill but surpass the expectations of our clients, through AI development.
Whether you’re looking to enhance user experiences, strengthen security measures, or achieve operational efficiencies with AI technology, CMC Global Solutions is your partner in innovation.
- Learn more about our success stories [here]
Don’t let this opportunity pass you by – explore our innovative solutions today and join the ranks of businesses thriving with AI.
