The ChatGPT logo, a keyboard and robot hands are seen in this illustration taken on January 27. (REUTERS/YONHAP)
Korea captured just 1% of the growing amount of investment poured into AI startups this year, alarming the domestic tech industry as the gap between major players continues to widen.
Korea has secured about $1.57 billion in venture capital investments in AI through the third quarter of 2025, equivalent to about 1 percent of global venture capital investments in AI, according to an analysis of venture capital investment data from the Organization for Economic Co-operation and Development (OECD) AI Policy Observatory by the Korean Chamber of Commerce and Industry (KCCI), released on Wednesday.
Korea’s total investment represents a 73rd of the roughly $114 billion attracted by the United States, a seventh of Britain’s roughly $11.5 billion and a sixth of China’s roughly $9 billion.
Korea ranks ninth among countries in AI venture capital investment. The United States attracted 72% of global venture capital funding in the AI space, highlighting the concentration of capital in the country.
Global venture capital investment in AI has grown rapidly, reaching approximately $158.4 billion in the third quarter of 2025, almost four times the $40 billion recorded in the third quarter of 2015. AI’s share of total venture capital funding increased from 20% between the first and third quarters of 2015 to 55.7% during the same period of 2025.
Investment also showed strong disparities between companies. US generative AI startup xAI raised around $11 billion last year, while Databricks raised around $8.5 billion and OpenAI raised around $6.6 billion.
A mobile phone screen showing icons of AI applications Deepseek, Chatgpt and Gemini in Berlin on October 31. (EPA/YONHAP)
Chinese AI companies such as Moonshot AI also got $1.3 billion. In contrast, Korea’s best-funded AI company, AI semiconductor maker Rebellions, has only attracted about $140 million in investment.
Experts say closing the gap will require targeted investment strategies and regulatory reform.
“Uncertain regulatory conditions make global investors hesitant to finance Korean AI startups,” said Koo Tae-eon, a lawyer at Lynn Law Firm and vice president of the Korea Startup Forum. “We need policy change focused on innovation. »
Koo Ja-hyun, a senior researcher at the Korea Development Institute, said the government must “actively support development in areas where Korea can have a comparative advantage, such as semiconductor design for AI.”
This article was originally written in Korean and translated by a bilingual journalist using generative AI tools. It was then edited by a native English-speaking publisher. All AI-assisted translations are reviewed and refined by our editorial staff.
BY KIM SU-MIN ((email protected))