OpenAI and Kakao: A Powerful Alliance in South Korea's AI Landscape

The global artificial intelligence (AI) market is projected to reach US$3.27 billion in 2024, with a CAGR of 28.48% from 2024 to 2030. South Korea, with its robust tech environment and energetic startup scene, is emerging as a leader in AI adoption. The recent partnership between OpenAI and Kakao, announced on February 4, 2025, is a testament to the growing significance of AI in the South Korean market and the global AI landscape.

OpenAI, the U.S.-based AI research company, has joined forces with Kakao, South Korea's leading IT giant, to develop AI services for Kakao's 50 million users. This strategic alliance aims to integrate OpenAI's advanced AI technologies with Kakao's diverse digital services, including the popular messaging app KakaoTalk and mobility service KakaoT. The collaboration is part of OpenAI's broader effort to strengthen the AI alliance between South Korea, the U.S., and Japan, countering the rapid advancements in AI by Chinese startup DeepSeek.



The partnership between OpenAI and Kakao is set to address several challenges and opportunities in the South Korean AI market. By leveraging OpenAI's advanced AI technologies and Kakao's extensive user base, the collaboration seeks to enhance AI adoption and user experience in the country. Here's how the partnership addresses key aspects of the South Korean AI market:

1. Competition from local and international players:
- Kakao, with its 50 million users, will integrate OpenAI's ChatGPT API into its AI service, Kanana, potentially making it more competitive against local AI platforms like A. (SK Telecom) and WRTN, as well as international players like Microsoft Copilot and Claude.
- OpenAI's strategic alliance with Kakao is part of its broader effort to strengthen the AI alliance between South Korea, the U.S., and Japan, countering the rapid advancements in AI by Chinese startup DeepSeek.

2. Regulatory environment:
- The South Korean government has been promoting the development of the AI industry as a national strategy, with initiatives like the National Strategy for Artificial Intelligence (2019) and the Digital New Deal (2020). This supportive regulatory environment encourages partnerships and investments in AI, facilitating the collaboration between OpenAI and Kakao.
- The partnership aligns with the government's focus on "trustworthy AI," emphasizing ethical development and responsible utilization of the technology, which is crucial for maintaining consumer trust and regulatory compliance.

3. Consumer trust in AI technologies:
- By integrating OpenAI's ChatGPT API into Kanana, Kakao can offer users a more advanced and reliable AI experience, potentially enhancing consumer trust in AI technologies.
- OpenAI's strong brand recognition, comprehensive feature set, and consistent performance can help build trust among South Korean users, who have shown a growing interest in AI services, with a dramatic increase in usage from 110 million minutes in December 2023 to 900 million minutes in December 2024.

In conclusion, the partnership between OpenAI and Kakao addresses the challenges and opportunities in the South Korean AI market by fostering competition, aligning with the supportive regulatory environment, and enhancing consumer trust in AI technologies through the integration of advanced AI capabilities. This strategic alliance is set to drive technological advancements, market expansion, and user base growth for both OpenAI and Kakao, further solidifying their positions in the global AI landscape.