What OpenAI’s Korea foray means for AI market

OpenAI’s Seoul office signals deeper push into enterprise, policy ties, sources say

OpenAI logo (Reuters-Yonhap)

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.”