South Korea Artificial Intelligence (AI) in Retail Market, By Component (Solutions, Services), By Technology (Machine Learning (ML), Natural Language Processing (NLP)); By Application (Customer Service & Support, Inventory Management & Demand Forecasting)

South Korea Artificial Intelligence (AI) in Retail Market Zooming 5.8X to Cross USD 1 Billion by 2031
South Korea Artificial Intelligence (AI) in Retail Market is booming primarily due to the government’s supportive initiatives, tech-savvy population, advanced digital infrastructure, and investments from major conglomerates like Samsung and LG.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated South Korea Artificial Intelligence (AI) in Retail Market size by value at USD 189.19 million in 2024. During the forecast period between 2025 and 2031, BlueWeave expects South Korea Artificial Intelligence (AI) in Retail Market size to boom at a robust CAGR of 28.50%, reaching a value of USD 1,094.54 million by 2031. The growth of South Korea's Artificial Intelligence (AI) in Retail Market is propelled by several key factors, including robust government support, exemplified by initiatives like the AI National Strategy and substantial investments aimed at fostering AI adoption across sectors. The nation's advanced digital infrastructure, including widespread 5G connectivity and high internet penetration, facilitates seamless integration of AI technologies. Retailers are increasingly leveraging AI for personalized customer experiences, predictive analytics, and efficient inventory management. Additionally, the presence of tech-savvy consumers and a burgeoning startup ecosystem contributes to the rapid adoption and innovation in AI-driven retail solutions.

Opportunity – Expansion of AI-Powered Customer Service Solutions
South Korean retail market is experiencing significant growth driven by the expansion of AI-powered customer service solutions. Retailers are increasingly adopting AI technologies such as chatbots, voice recognition, and natural language processing to enhance customer interactions and operational efficiency. For instance, SK Telecom's acquisition of Persona AI has bolstered its capabilities in AI-based contact centers, enabling more personalized and efficient customer service experiences. Additionally, the proliferation of AI-driven chatbots integrated into popular messaging platforms like KakaoTalk has allowed retailers to provide instant, 24/7 customer support, leading to increased customer satisfaction and loyalty.

Machine Learning Segment Dominates South Korea AI in Retail Market
The machine learning (ML) segment holds a significant market share of South Korea Artificial Intelligence (AI) in Retail Market. The ML segment’s market dominance is attributed to its extensive applications in areas such as predictive modeling, fraud detection, recommendation systems, and targeted advertising across various industries, including finance, healthcare, and logistics. The widespread adoption of machine learning solutions in these sectors has significantly contributed to its leading position in the AI retail market.

Impact of Escalating Geopolitical Tensions on South Korea Artificial Intelligence (AI) in Retail Market

Escalating geopolitical tensions are significantly impacting South Korea's Artificial Intelligence (AI) in Retail Market. The United States-China tech rivalry has led to export restrictions on advanced semiconductors, affecting South Korean chipmakers like Samsung and SK Hynix, which are crucial for AI infrastructure. Additionally, South Korea's government has restricted access to Chinese AI applications such as DeepSeek due to data privacy and security concerns, limiting the availability of affordable AI tools for retailers. These developments are prompting South Korean companies to invest in domestic AI solutions and collaborate with Western tech firms to mitigate risks and maintain competitiveness in the retail sector.

Competitive Landscape

South Korea Artificial Intelligence (AI) in Retail Market is highly fragmented, with numerous players serving the market. Major companies dominating the market are Samsung Electronics, LG Electronics, Naver Corporation, Kakao Corporation, SK Telecom, Hyundai Motors AI Division, IBM Korea, Microsoft Korea, Oracle Korea, Google Korea, and SAP Korea. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge over their competitors in South Korea Artificial Intelligence (AI) in Retail Market.

The report's in-depth analysis provides information about growth potential, upcoming trends, and South Korea Artificial Intelligence (AI) in Retail Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in South Korea Artificial Intelligence (AI) in Retail Market, along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.