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Korea claims a dismal 1% of AI startup investment through Q3

Published: 17 Dec. 2025, 17:46 Updated: 17 Dec. 2025, 20:26

The ChatGPT logo, a keyboard and robot hands are seen in this illustration taken on Jan. 27. [REUTERS/YONHAP]

Korea has captured only a mere 1 percent of the increasing amount of investment poured into AI startups this year, alarming the domestic tech industry as the gap between major players continues to widen.

Korea secured about $1.57 billion in AI venture investment through the third quarter of 2025, equal to about 1 percent of global AI venture investment, according to an analysis of venture investment data from the Organisation for Economic Cooperation and Development (OECD) AI Policy Observatory by the Korea Chamber of Commerce and Industry (KCCI), released on Wednesday.

Korea’s total investment is one-73rd of the roughly $114 billion attracted by the United States, one-seventh of Britain's approximately $11.5 billion and one-sixth of China’s roughly $9 billion.

Korea ranked ninth among countries in AI venture investment. The United States drew 72 percent of global AI venture funding, highlighting the concentration of capital in the country.

Global AI venture investment has grown rapidly, reaching approximately $158.4 billion through the third quarter of 2025 — nearly four times the $40 billion recorded through the third quarter of 2015. AI’s share of total venture funding rose from 20 percent in the first to third quarter of 2015 to 55.7 percent in the same period of 2025.

Investment also showed sharp disparities among companies. U.S. generative AI startup xAI drew in about $11 billion last year, while Databricks pulled in about $8.5 billion and OpenAI raised about $6.6 billion.

A mobile phone display showing the icons of AI apps Deepseek, Chatgpt and Gemini in Berlin on Oct. 31. [EPA/YONHAP]

Chinese AI companies such as Moonshot AI also secured $1.3 billion. In contrast, Korea’s top-funded AI company, the AI semiconductor maker Rebellions, drew only about $140 million in investment.

Experts say that narrowing the gap will require targeted investment strategies and regulatory reform.

"Uncertain regulatory conditions make global investors hesitant to fund Korean AI startups," said Koo Tae-eon, a lawyer at law firm Lynn and vice chair of the Korea Startup Forum. “We need a policy shift that focuses on innovation.”

Koo Ja-hyun, a senior fellow at the Korea Development Institute, said the government must "actively support scale-up in areas where Korea can have a comparative advantage, such as AI semiconductor design."

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM SU-MIN [[email protected]]