AWS to Invest US$5 Billion in South Korea as Nation Targets Top 3 AI Status

Amazon Web Services (AWS) Korea is accelerating infrastructure investment this year. It is also expanding into the public sector and advancing agentic AI. The strategy aligns with the government’s ambition to position South Korea among the world’s top three artificial intelligence nations.

According to The Korea Herald, AWS Korea country managing director Ham Kee-ho spoke at a press conference in Seoul.

He said the company would “do our utmost to provide greater convenience for customers in Korea and contribute to Korea’s leap toward becoming one of the world’s three leading AI nations, as proposed by President Lee Jae Myung.”

The government aims to achieve top-tier AI status by 2027. It plans to do so through large-scale procurement of graphics processing units. It will also expand data infrastructure and develop domestic foundation models.

In October, AWS Chief Executive Matt Garman met the president in Gyeongju, North Gyeongsang Province.

During the meeting, he announced plans to invest more than US$5 billion in Korea by 2031. The investment will include new AI data centres in Incheon and Gyeonggi Province.

Combined with earlier commitments, AWS’ total planned investment is projected to exceed US$9 billion by 2031, marking the largest amount pledged by a single foreign company in the country.

Ham Kee-ho

Ham said.

Beyond capital spending, Ham highlighted the structural impact of AI adoption.

He predicted that by 2029, at least five Korean companies could generate US$100 billion in annual revenue with fewer than 12 employees, driven by AI-native operating models.

he said, adding that “ultralean, high-revenue firms” could emerge if the trend continues.

AWS estimates that 6 in 10 Korean firms have introduced AI agents.

However, International Data Corporation Korea found that half of Korean companies cite unclear guidelines as their biggest obstacle to AI deployment,  5.9 percentage points above the global average.

Ham said, describing a shift towards systems capable of autonomous task execution.

He added that AWS’ recently announced US$50 billion strategic partnership with OpenAI would accelerate adoption of AI agents among Korean companies.

Featured image credit: Edited by Fintech News Hong Kong, based on image by natanaelginting via Freepik

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