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Omdia noted that large-scale domestic AI infrastructure development is being led by companies including SK Telecom, Rebellion AI, Samsung and Naver
In sum – what to know:
Sovereign AI at the core – South Korea’s strategy emphasizes local data rules and regionally tailored foundation models alongside large-scale infrastructure buildouts.
Policy and domestic champions drive momentum – Government backing and ambitions of local AI players will shape deployment over the next three years.
Talent and market scale constrain growth – Skills shortages and limited domestic demand pose structural challenges to long-term AI infrastructure utilization.
South Korea is accelerating investment in AI data centers and semiconductors as it seeks to position itself alongside the world’s leading AI powers, according to Lian Jye, chief analyst at Omdia, in an interview with RCR Wireless News.
“South Korea has shown strong determination to compete with AI superpowers like the US and China, bolstered by robust local AI champions and investments in cutting-edge technologies such as embodied intelligence,” Jye said.
The Omdia analyst noted that large-scale domestic AI infrastructure development is being led by companies including SK Telecom, Rebellion AI, Samsung and Naver. While the overall strategy mirrors approaches seen in other advanced markets, it carries a distinct national focus. “This approach aligns broadly with strategies in other advanced markets but places a distinctive emphasis on sovereign AI, stringent local data regulations, and foundation models tailored to regional nuances,” he said.
According to Jye, the main drivers behind current investments are public policy and domestic corporate ambition. “These investments are primarily propelled by government policies advocating for sovereign AI and by the ambitions of domestic AI champions to rival global leaders in technological advancement,” he said, adding that “over the next three years, these two drivers are expected to remain the most influential in shaping South Korea’s AI trajectory.”
Despite momentum, structural constraints remain. “Key constraints include talent shortages, as South Korea competes with global tech giants for top AI engineers, and the limited scale of its domestic market, which lacks the vast consumer and enterprise base needed to sustain long-term infrastructure utilization,” Jye said.
To address these challenges, operators are deepening collaboration and skills development. “To mitigate these, operators are collaborating with local AI champions and the government to accelerate AI-driven digital transformation, invest in workforce upskilling programs, and forge international partnerships for knowledge and resource sharing,” he concluded.
