What OpenAI's expansion to Korea means for market?
OpenAI, the creator of ChatGPT, has officially established a Korean subsidiary, marking a significant step in its expansion into the Korean market. The move comes after earlier regional entries in Tokyo and Singapore, underlining Asia's growing importance in the company's global strategy.
OpenAI's approach goes far beyond simply opening subsidiaries, according to industry sources on Friday. In each country, the firm is implementing a multilayered strategy that includes developing localized artificial intelligence models, forging enterprise partnerships, aligning with public policy and investing in digital infrastructure.
Sources say there are compelling reasons for OpenAI's arrival in Korea. The nation continues to rank among the global leaders in key technological and societal metrics related to AI.
The 2025 AI index report published by Stanford University's Institute for Human-Centered AI showed that Korea topped the world in AI patent applications per 100,000 people.
As of 2023, Korea filed 17.3 AI patents per 100,000 people — surpassing Luxembourg (15.3), China (6.1) and the US (5.2).
Korea also ranks high in AI receptiveness. The same report cited global surveys indicating that Koreans, along with people in China, Indonesia and Thailand, exhibit a particularly positive perception of AI.
The environment fosters early commercialization, smoother beta testing and rapid user adoption of AI-based services.
'Korea is not merely a technology adopter,' said an industry source who requested anonymity. 'It is a proven test bed where global AI strategies can be executed and scaled. The new Seoul office should be seen not just as a local outpost, but as a strategic pivot point.'
OpenAI's anticipated roles in Korea include: enhancing GPT models with Korean language optimization, deploying ChatGPT Enterprise for domestic corporations and public institutions, establishing research hubs in collaboration with academia and industry, recruiting and training local AI talent and engaging in policy and infrastructure partnerships.
Of particular interest is the potential for deeper cooperation with the Korean government. Through initiatives like "OpenAI for Countries," the company may explore building AI data centers and testing infrastructure within Korea.
OpenAI's Korean entry also raises questions about its possible impact on the local search engine landscape. With last year's debut of ChatGPT Search — a service that blends chatbot capabilities with real-time information retrieval — OpenAI has begun nudging into territory long dominated by domestic platforms.
As of Wednesday, according to Internet Trend, Naver held 57.41 percent of Korea's search market, followed by Google at 34.45 percent and Microsoft Bing at 3.98 percent. However, this marks a notable decline from Naver's nearly 80 percent market share in 2015.
Despite the shifting landscape, Naver CEO Choi Soo-yeon expressed confidence during the company's first quarter earnings call earlier this month, saying that 'there has been no negative traffic impact from generative AI services.'
Instead of competing on raw market share, Naver is focusing on increasing user engagement through AI-powered features like 'AI Briefing,' launched in March. The tool summarizes search results and provides source citations in response to user queries.
OpenAI, for its part, appears unbothered by the speculation. When asked if it now considers itself a 'search platform,' the firm's official responded with a smile, emphasizing that 'we're not here to target any specific portal's market share — it's simply a global trend unfolding.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Korea Herald
a day ago
- Korea Herald
Asia-Pacific Marine Engine Leader Weichai Launches Premium WH17 Marine Power, Earning Recognition from Korean Customers
SEOUL, South Korea, May 30, 2025 /PRNewswire/ -- As a leading brand in the marine engine market in the Asia-Pacific region, Weichai continues to strengthen its strategic presence in the Korean market. In recent years, it has successfully launched the WH17 series—a new generation of premium marine power solutions. With outstanding performance and cutting-edge technology, this product line has rapidly gained recognition from key customers in Korea's seaweed farming and fisheries sectors. "In the demanding operational environment around Mokpo, where tidal changes are drastic, the WH17 engine has demonstrated exceptional adaptability and reliability, along with outstanding fuel economy," said a manager from a seaweed farming company in Mokpo, South Jeolla Province. Weichai Group, as a globally leading multinational industrial equipment conglomerate, has achieved a significant milestone with the WH17 series, which represents the culmination of seven years of advanced R&D at Weichai. Covering a power range from 1,000 to 3,200 horsepower, it has undergone over 10,000 hours of rigorous bench tests and accumulated more than 1 million hours of sea trials. Specifically optimized for Korea's complex maritime conditions, it delivers exceptionally stable and robust power output even in rough seas with high waves and strong currents. At the same time, it achieves industry-leading fuel efficiency, significantly reducing customers' operating costs. Leveraging its well-established local service network in Korea, Weichai is actively expanding the success of the WH17 series into more demanding vessel segments, such as transport vessels, engineering ships, and passenger ships. This move further solidifies its position as the Asia-Pacific leader in marine power solutions.
Korea Herald
a day ago
- Korea Herald
Time to pivot to China, India and move beyond US: Mirae Asset vice chairman
As cracks emerge in the US-centered investment landscape -- driven by geopolitical uncertainty and waning global confidence -- Mirae Asset Securities Vice Chairman Heo Sun-ho called for a strategic rebalancing toward China and India. Speaking at a global asset allocation forum hosted by Mirae Asset in Seoul on Thursday, Heo said the global financial market has relied heavily on the US as its primary growth engine over the past three years. However, with the return of President Donald Trump and the onset of a high-tariff era, he warned that the global trade order is being reshaped. 'The recent depreciation of the US dollar reflects weakening global confidence, spurred by growing nationalism and ballooning fiscal deficits,' Heo said, urging investors to pivot from a US-centric strategy and realign their portfolios with the shifting global innovation landscape. China and India, he said, represent promising alternatives. 'Innovative technology that once fueled US growth is no longer its exclusive domain,' he added, pointing to China's accelerating technological self-reliance, supported by pro-market policy shifts. He cited examples such as Chinese AI startup DeepSeek positioning itself as a challenger to OpenAI, and BYD, which in April overtook Tesla in the European electric vehicle market for the first time. Meanwhile, India is emerging as a vast consumer market, Heo said, powered by robust digital infrastructure and a rapidly expanding population. His remarks come amid a noticeable cooling of Korean retail interest in US equities following a period of record buying. As of May 26, Korean individual investors had sold a net $1.065 billion (1.46 trillion won) in US stocks -- their first net sell-off in seven months. Even longtime favorites like Tesla and Nvidia saw combined net sales of about $306 million during the week of May 19-23. Echoing the call for a diversified investment strategy, Lee Phil-sang, director and head of Asia Pacific Research at Mirae Asset Hong Kong, highlighted China's healthcare tech sector as a compelling opportunity. He cited the country's deep talent pool as a key factor driving its progress toward catching up with the more established US biopharmaceutical industry. 'China has made significant strides in new drug development over the past four years. In 2010, its output in this field was minimal, but it now ranks second globally,' Lee said. Chinese biotech firms such as Beigene, Akeso, Hansoh, and Eccogene have been expanding globally through out-licensing deals and international clinical trials. Lee said that China is also taking the lead in advanced drug modalities, including antibody-drug conjugates, targeted cancer therapies linking antibodies to toxic agents, and bispecific antibodies, designed to bind two different antigens for enhanced efficacy. Policy shifts in China are also creating a more favorable environment for foreign investors, Lee said. Whereas past periods of double-digit economic growth often led to excessive government investment and harmful oversupply, a slowing Chinese economy is now helping to differentiate true market leaders. 'China's slow growth isn't necessarily negative,' Lee said. 'It's in low-growth conditions that world-class enterprises emerge. When a leading company dominates the domestic market and expands overseas, it sets the stage for the rise of truly global champions.'
Korea Herald
a day ago
- Korea Herald
Hyundai Motor denies tariff-driven US price hike rumors
Hyundai Motor Company has pushed back against speculation that it plans to raise vehicle prices in the US in response to the Trump administration's recently imposed 25 percent tariff on imported cars. The denial follows a Bloomberg report on Thursday that said Hyundai is ready to increase retail prices in the US by around 1 percent as early as next week to offset the impact of the tariff. Citing an anonymous source, the report also mentioned a potential rise in shipping costs and the prices of certain optional features. 'We have not made any decision regarding price changes after the current price guarantee period ends on June 2,' a Hyundai Motor official said on Friday, clarifying that this is the company's official stance. The official explained that June is the period when the company conducts its regular price review to adjust for market changes, but this review is not related to the recently imposed tariff. The 25 percent tariff, which took effect April 3, has raised concerns within the industry. Hyundai, however, has consistently denied any direct link between the levy and retail pricing decisions. The company has pledged to maintain its current vehicle prices, including those for its luxury brand, Genesis, through June 2 despite the tariff. Hyundai Motor's CEO Jose Munoz, also stated during his speech at the Seoul Mobility Show 2025 on April 3 -- the same day the tariffs were imposed -- that there were no plans to raise prices in the US. In a separate speech in New York, however, he was reported to have hinted at possible price adjustments depending on future market conditions after June. Hyundai has come under growing pressure to review its US pricing strategy since the tariff was introduced. The company is expanding its local production capacity with the recent opening of Hyundai Motor Group Metaplant America in Georgia, which adds up to 300,000 units in annual capacity. However, a significant portion of its US vehicle supply is still imported from Korea. Hyundai Motor Company's Korean plants exported 637,638 units to the US last year, accounting for approximately 69.9 percent of its total US sales.
