Amazon Web Services to invest $5.88 billion in Korea, create 12,300 jobs a year

The logo of Amazon Web Services (AWS) is seen on the opening day of the Integrated Systems Europe (ISE) audiovisual and systems integration exhibition in Barcelona on January 31, 2023. [AFP/YONHAP]

Amazon Web Services (AWS), the world's largest cloud provider, will invest 7.85 trillion won ($5.88 billion) in Korean cloud infrastructure by 2027 and annually create 12,300 jobs to meet the growing demand in the country.

The figure shot upwards 185.55 percent compared to the 2.73 trillion won investment the cloud provider made in the prior five-year period from 2018 to 2022.

With the investment, AWS will support opening and maintaining data centers in Korea and in telecommunication sectors, as well as contribute approximately 15.06 trillion won to Korea's GDP, the company said.

AWS is also opening grounds to support generative AI startups, hosting a six-week training program in August with KB Investment and Saehan Venture Capital. The cloud provider offered a maximum of $200,000 in AWS credit per company to help cover their service-related costs.

On Tuesday, the company announced that it is opening a $5 million support program to assist local companies with the necessary resources to establish and expand their in-house foundation model.

Foundation models become the basis for creating generative AIs as they train on massive amounts of data through machine learning.

Selected companies will receive a maximum credit of $1 million and AWS will help them launch their models to its machine learning hub Amazon SageMaker JumpStart.

"AWS has invested billions of dollars in Korea's cloud infrastructure from 2016 to support the country's digital transformation," Ham Kee-ho, AWS Korea's managing director, said in a statement.

"We have also offered cloud computing education to more than 20,000 talents from 2017 as well. Through the 7.85 trillion won investment until 2027, we will help propel Korea into a global digital powerhouse."

AWS has more than 1,000 Korea-based partners including Bespin Global and Megazone Cloud, and helps expand their cloud service globally through its network.

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]