OpenAI opens Korean office to deepen AI partnerships

OpenAI has set up a Korean subsidiary, its third office in Asia and 12th worldwide, as it expands its presence in the region.

The US-based AI firm announced the move at a press briefing in Seoul, highlighting Korea’s unique combination of tech infrastructure, innovative companies, and early adopters.

OpenAI, creator of ChatGPT, said Korea is now its second-largest market for paid ChatGPT subscriptions after the US, with weekly active users up 4x and paid subscribers tripling year-on-year.

The company sees growing opportunities for collaboration with Korean firms like Samsung Electronics and SK Group, especially in data centers and hardware.

OpenAI’s integration with local tech giant Kakao is in progress, following a partnership deal in February.

The company is also expected to sign a memorandum of understanding with Seoul National University to boost academic cooperation.

No details were given about the leadership or staffing of the new Korean office.

🔗 Source: The Korea Herald

🧠 Food for thought

Implications, context, and why it matters.

Market performance drives OpenAI’s strategic office placement decisions

OpenAI’s decision to establish its Seoul office reflects strong market fundamentals, with Korea serving as the company’s second-largest market for paid ChatGPT subscriptions globally, trailing only the United States 1.
The country has demonstrated significant growth metrics with a year-on-year increase in weekly active users and increased paid subscriber numbers, making Korea OpenAI’s largest market in the Asia-Pacific region 1.
Korea also ranks among the global top 10 in API-based usage, indicating deep technical integration beyond consumer adoption 1.
This expansion pattern suggests OpenAI prioritizes physical presence in markets where user engagement and revenue generation have already proven substantial, rather than speculative market entry.

South Korea’s integrated AI ecosystem offers unique partnership opportunities for global tech companies

Korea’s AI infrastructure advantages extend beyond consumer adoption to include what OpenAI calls “full-stack” capabilities spanning hardware, infrastructure, software, and consumer adoption 1.
The country’s robust innovation ecosystem supports this positioning, with 1,506 scaleups generating $55.8 billion in total funding as of 2023, representing approximately 2% of GDP 2.
Specifically in AI, 376 scaleups focus on AI technologies, while government institutions provide 16% of total capital in funding rounds, demonstrating strong public-private collaboration 2.
OpenAI’s targeted partnerships with Samsung Electronics and SK Group for data center construction and hardware chip development leverage Korea’s established semiconductor manufacturing strengths 3.
This approach allows OpenAI to tap into existing industrial capabilities rather than building infrastructure from scratch, potentially accelerating their regional expansion timeline.