OpenAI’s Strategic Expansion in South Korea: A Deep Dive

OpenAI’s user base in South Korea skyrocketed from 980,000 to over 10 million within a year, marking an eleven-fold increase that outpaces any other market. This explosive growth signaled to OpenAI’s executives that they had uncovered a significant opportunity, prompting the company to fast-track its expansion into South Korea and establish Seoul as its third Asian headquarters.

The Power of Numbers: A Closer Look

The numbers behind ChatGPT’s rise in South Korea tell a compelling story. By April, ChatGPT boasted 10.72 million monthly active users, more than doubling from March’s 5.09 million, according to mobile data tracker Mobile Index. Although OpenAI hasn’t disclosed specific user metrics for South Korea, third-party insights reveal substantial adoption trends.

Total usage time among Korean users surged from 8.08 million hours in March to 23.7 million hours in April, while new app installations nearly quadrupled, increasing from 1.44 million to 4.67 million during the same timeframe.

However, what stands out is Korea’s global ranking in paid subscriptions. It holds the title for the largest number of paying ChatGPT subscribers after the United States, indicating that the Korean market isn’t just about free users experimenting with AI; there’s genuine financial commitment and sustained engagement.

Beyond User Numbers: A Thriving Ecosystem

The strategic impact of OpenAI’s South Korean expansion extends beyond simple user acquisition. According to Kwon, a local industry expert, “Korea has an ecosystem that encompasses all areas of AI, from semiconductors to software and startups.” This ecosystem is a critical asset, positioning Korea as a leading AI country where generations—from students to the elderly—utilize AI daily.

Korea’s comprehensive vertical stack offers a unique advantage. From Samsung’s cutting-edge semiconductors powering AI computing to a populace already integrating AI into their daily workflows, the country provides fertile ground for OpenAI’s ambitions. Kwon noted that many companies are leading in global markets that align with OpenAI’s focus areas, including healthcare, robotics, and finance.

Strategic Timing and Competitive Pressures

The timing of OpenAI’s expansion reflects the competitive pressures that extend beyond market opportunities. As ChatGPT strengthens its foothold, domestic tech companies face risks of falling behind due to delayed AI rollouts. For example, Kakao recently initiated closed beta testing for its AI assistant “Kanana” on May 8, while SK Telecom’s offerings maintain monthly active user counts around just one million.

This competitive landscape suggests that OpenAI’s expansion strategy is not merely about growth; it’s also about securing market positioning before domestic rivals can launch effective challenges. OpenAI is rapidly forming partnerships with key Korean firms, including collaborations with the Korea Development Bank, Kakao, Krafton, and SK Telecom.

The Infrastructure Initiative

One of the most significant elements of OpenAI’s South Korean strategy is its focus on infrastructure. The company’s “OpenAI for Countries” program aims to integrate software with local governments and companies to build data centers and provide customized ChatGPT solutions. This positions Korea as a potential regional AI hub.

Kwon emphasized that “to achieve Korea’s goal of becoming a leading AI country by 2027, infrastructure investment is essential,” hinting at broader cooperation. This model mirrors OpenAI’s recent partnership with the UAE, where they established infrastructure cooperation as their first overseas initiative.

Challenges Ahead

Despite the promising growth, the rapid expansion of ChatGPT has raised concerns about the viability of local platforms. An industry insider pointed out that “ChatGPT is expanding its influence beyond search into various sectors, meaning no other app category can afford to be complacent.”

Furthermore, navigating the complex regulatory and political landscape is crucial. Kwon’s discussions with both major Korean political parties—the Democratic Party and People Power Party—highlight that successful expansion will require astute management of local political dynamics.

Strategic Implications for the Future

OpenAI’s expansion into South Korea signifies a strategic pivot from mere technology development to a focus on geopolitical positioning within AI infrastructure. By embedding itself in Korea’s robust AI ecosystem, OpenAI is not just acquiring users but solidifying its influence in Asia’s most AI-ready market.

The success of this initiative could serve as a blueprint for OpenAI’s global strategy, showcasing how AI companies must evolve beyond software services to become integral components of national technological frameworks. For Korea, this partnership promises accelerated AI development; for OpenAI, it represents a proving ground for its “AI for Countries” vision.

Ultimately, the question is not whether this expansion will succeed—the user numbers already validate market demand. Instead, the real question is whether this model of deep, infrastructure-level partnerships will redefine how AI companies seek global influence in an increasingly competitive landscape.

As Korean tech giants like Kakao rush to launch their own AI assistants, OpenAI has already captured over 10 million users in South Korea and shows no signs of slowing down. This expansion isn’t merely about international growth; it’s about dominating Asia’s most strategically valuable AI market before local players can mount an effective response.