OpenAI Comes to South Korea!

Intermediate | June 12, 2025

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Big AI News in Korea

OpenAI South Korea Legal Entity Expands to South Korea

OpenAI, the company famous for ChatGPT, is making a big move in South Korea! They have established a OpenAI South Korea legal entity there and plan to open an office in Seoul soon. This is like opening a new branch just for Korea, and it shows they are serious about working more closely with people and businesses in the country.

Why South Korea Is Important for OpenAI

Why South Korea? Well, Korea is really advanced in technology and has many smart people and exciting companies working on AI. OpenAI wants to be closer to this energy and innovation and increase the adoption of its technology. By having a local base, they can work better with Korean partners and understand the market here. South Korea also has the most paying ChatGPT users outside the United States, making it a very important market for OpenAI.

What This Means for AI in Korea

Legal and Business Benefits

Setting up this OpenAI South Korea legal entity helps OpenAI follow Korean laws and do business more easily there. It shows a long-term commitment to the country and is part of OpenAI’s global expansion, making Korea its third office in Asia after Japan and Singapore.

Building Partnerships with Korean Companies

OpenAI is looking to form strategic partnerships with local businesses and policymakers. They have already worked with major Korean companies like Kakao, Krafton, and SK Telecom on AI technologies. These collaborations could lead to new AI services and products specifically for the Korean market.

Korea’s Strong AI Ecosystem

OpenAI’s Chief Strategy Officer, Jason Kwon, mentioned that Korea’s complete AI ecosystem, from hardware to software, makes it a very promising market. He has visited Korea recently to explore potential AI partnerships and discuss AI infrastructure. This move could help boost AI research, talent development, and support startups in South Korea, contributing to the country’s ambition to be a leader in AI.

Vocabulary

Legal entity (noun): A company or organization that has legal rights and responsibilities, like a person.
- Example: “The new legal entity allows the company to sign contracts in the country.”
Establish (verb): To set up or create something, like an organization or system.
- Example: “They plan to establish a new research center next year.”
Presence (noun): The fact of being in a particular place.
- Example: “The company wants to increase its presence in Asia.”
Collaboration (noun): The act of working together with someone or a group to create or achieve something.
- Example: “This project is a collaboration between two universities.”
Partnership (noun): A formal agreement between people, groups, or businesses to work together.
- Example: “They formed a partnership to develop the new software.”
Adoption (noun): The act of starting to use something new.
- Example: “The adoption of new technology is increasing rapidly.”
Ecosystem (noun): A network of connected businesses, technologies, and people in a particular area.
- Example: “The Silicon Valley ecosystem supports many tech startups.”
Talent development (noun phrase): The process of improving the skills and abilities of people.
- Example: “The company invests heavily in talent development programs.”
Startup (noun): A newly established business, usually small.
- Example: “Many startups are working on new AI applications.”
Commitment (noun): A promise or firm decision to do something.
- Example: “Setting up a local office shows their commitment to the market.”

Discussion Questions (About the Article)

Why is having a local legal entity important for a foreign company like OpenAI in South Korea?
What makes South Korea an attractive market for AI companies according to the article?
Which Korean companies has OpenAI already collaborated with?
What did OpenAI’s Chief Strategy Officer say about Korea’s AI ecosystem?
How might OpenAI’s presence impact AI development in South Korea?

Discussion Questions (About the Topic)

What are some benefits of international technology companies opening offices in different countries?
How do you think AI is changing daily life in your country?
What skills do you think are important for jobs in the AI field?
Should governments encourage foreign AI companies to set up local offices?
What potential challenges might OpenAI face operating in South Korea?

Related Idiom

“Get a foot in the door”

Meaning: To enter a business or organization at a low level, but with a chance of progressing; or, to succeed in getting into a place or an organization.
Example: “Setting up a legal entity helps OpenAI get a foot in the door in the Korean market.”

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This article was inspired by: Bloomberg, May 26, 2025