OpenAI, the leading artificial intelligence research and deployment company, has announced plans to open its inaugural office in Seoul, South Korea. This strategic move comes as the demand for OpenAI’s flagship product, ChatGPT, experiences significant growth in the country, positioning South Korea as the world’s second-largest market for paying ChatGPT subscribers, trailing only the United States.

Growing Market Presence and Local Entity Formation

To better serve the expanding user base and streamline operations, OpenAI has officially created a local business entity in South Korea. The establishment of this entity enables the company to deepen its engagement with South Korean partners, customers, and regulators. Concurrently, OpenAI has started recruiting staff focused on building and supporting partnerships within the country. The company has promised to share additional details about its activities and local initiatives in the near future.

South Korea’s Robust AI Ecosystem: A Strategic Opportunity

Jason Kwon, OpenAI’s Chief Strategy Officer, underscored South Korea’s comprehensive AI ecosystem as a key factor driving the company’s decision to expand there. According to Kwon, Korea’s AI environment is uniquely promising because it covers a full spectrum — from semiconductor manufacturing (“silicon”) to advanced software development, and includes a broad user demographic ranging from students to elderly citizens. This dynamic ecosystem makes South Korea a fertile ground for impactful AI innovations and applications.

Partnership with Kakao and Product Development

Earlier this year, OpenAI announced a partnership with Kakao Corporation, a major South Korean internet company and operator of the country’s largest chat application. This collaboration aims to co-develop AI-based products tailored specifically for South Korean consumers. By leveraging Kakao’s widespread platform and OpenAI’s cutting-edge AI technology, the partnership seeks to enhance accessibility and integration of AI tools within everyday digital communications in Korea.

Engagement with Political Leadership and Regulatory Stakeholders

As part of its expansion efforts, Jason Kwon is scheduled to meet with influential political figures during his visit to Seoul. Meetings are planned with representatives from both the main opposition Democratic Party and the ruling People Power Party. These engagements highlight OpenAI’s intention to work closely with South Korean policymakers, ensuring its operations align with the country’s regulatory frameworks and contribute positively to national AI development goals.

Implications for OpenAI’s Global Strategy

This move marks a significant milestone in OpenAI’s international growth plan, reflecting the company’s commitment to embedding itself in key global markets with advanced AI infrastructure and user demand. South Korea’s strong technological base, government support for innovation, and tech-savvy population present an ideal environment for OpenAI to expand the reach of its AI products and services. Through localized operations and strategic partnerships, OpenAI aims to accelerate AI adoption and innovation across the region.