When ChatGPT’s user base surged from 980,000 to over 10 million in South Korea within a year, OpenAI executives recognized they had stumbled upon a significant opportunity. This rapid growth was not merely a fleeting trend but a clear market indicator that prompted the company to expedite its expansion efforts in South Korea and designate Seoul as its third Asian headquarters. This remarkable growth story extends beyond simple user acquisition metrics.
According to mobile data tracker Mobile Index, ChatGPT’s monthly active users in South Korea reached 10.72 million in April, a sharp rise from 5.09 million just a month prior. Additionally, the total usage time among Korean users skyrocketed from 8.08 million hours in March to 23.7 million hours in April, with app installations increasing nearly fourfold during the same period. Most notably, South Korea ranks second globally in paid ChatGPT subscriptions, indicating that users are not just exploring the service for free but are willing to invest in it.
OpenAI’s strategy in South Korea takes into account the entire AI ecosystem present in the country. Korea boasts a vertical stack covering various AI aspects—from cutting-edge semiconductor technology to a population that actively engages with AI solutions in their daily lives. This rich environment is crucial for facilitating innovation and growth.
However, the timing of OpenAI’s expansion reflects competitive pressures in the tech space. As domestic firms face challenges in rolling out their AI solutions, OpenAI is keen to establish strong partnerships with major Korean firms before they can effectively compete. Equally important is OpenAI’s infrastructure ambitions through its “OpenAI for Countries” program, which aims to integrate its technology with local resources.
By investing in Korea’s AI infrastructure, OpenAI sets the stage for the country to become a regional hub for AI development. Despite these opportunities, the rapid growth of ChatGPT also raises concerns for local platforms, as the competitive landscape intensifies. OpenAI’s engagement with Korean political parties further complicates the expansion process, highlighting the need for navigational finesse in local policies.
Ultimately, OpenAI’s strategic move into South Korea signifies a shift towards a more holistic approach in building technological ties and infrastructure. By embedding itself within Korea’s advanced AI ecosystem, OpenAI is not just capturing users but is also establishing a critical presence in Asia’s competitive AI market, paving the way for future global strategies and partnerships.