South Korea Cloud Computing Market

South Korea Cloud Computing Market Size Report – In a Glance

As per the survey report on South Korea cloud computing market, the market is expected to foresee a CAGR value of 26.1% during 2025-2035, and further generate a market size of USD 52.8 billion by the end of 2035. In 2025, the market size was value at USD 9.7 billion revenue.

• The South Korea cloud computing market’s growth is driven by rising cybersecurity concerns.
• KDMI analyst’s growth analysis foresees government support and initiatives as the growth drivers for South Korea cloud computing market.

South Korea Cloud Computing Market Analysis

Cloud computing is on-demand IT service that include servers, storages, databases, networking, software, and others over the cloud services. This cloud computing services allow users to access only required service and pay only for used service. Organizations and businesses need not build their own physical cloud infrastructure. Cloud computing services reduce IT costs, improve work productivity, and enhance overall performance. The South Korea cloud computing market growth is driven by rising cybersecurity concerns and growing demand for efficient cloud service to efficiently manage business data at one place and access whenever required. According to the data by Global Entrepreneurship Monitor report, the Republic of Korea’s National Entrepreneurial Context Index (NECI) score as per the national experts was 5.8 in 2023, growing at a steady rate, and this pushes region’s businesses to improve overall GDP. The expansion of start-ups and businesses in the country requires efficient cloud services to minimize inefficiency of traditional solutions. Google LLC, IBM Corporation, and SAP SE are some of the significant participants in the South Korea cloud computing market.

South Korea Cloud Computing Market Growth Drivers and Restraints

Growth Drivers

• Government support and initiatives – The South Korea cloud computing market is influenced by government supporting adoption of cloud computing services and initiatives by government in promoting advanced solutions for businesses in the country. The increasing adoption of digitalization in every sector of nation is leading to the growing investment in cloud computing services to get improved and easily accessible infrastructure. The technological innovations like integrating AI features into cloud services, enhanced data centers, and other improve country’s digital economy. The statistics report shows, in 2024, the Korea’s ICT exports were accounted at a record of USD 235 billion and the industry steadily contributes to the nation’s economic growth. With major organizations participating in funding program of cloud services. AWS has planned to invest USD 5.8 billion in Korea’s cloud infrastructure until 2027.  These initiatives further expand the market growth.
• Increasing number of data breaches – The growing concerns of data breaches due to advancement in technology, the enterprises are shifting towards more reliable and secure cloud solutions. Cloud computing services offer advances security features like protection against cyber-attacks, encryption, AI-driven features to detect threats, and much more which results in improved business operational activities and increased productivity. With the growing adoption of digitalization in businesses, especially in sectors like healthcare, e-commerce, and telecom, the demand for innovative cloud services grows potentially.

Restraints

• High dependency on foreign cloud providers – The South Korea cloud computing market restraints due to major companies like AWS, Google, and Microsoft are highly depended on foreign cloud services which are expensive. Dependency on foreign cloud services led to concerns over data privacy, over-reliance on external service providers, and others which impacts the market growth. Moreover, the high costs associated with integration in IT systems is a complex procedure and it poses as a challenge for small and medium-sized enterprises, results into slowdown of cloud computing market reach.

South Korea Cloud Computing Market Segmentation

Our experts at KD Market Insights have segmented the South Korea cloud computing market research report as:

Analyst’s Observation on South Korea Cloud Computing Market Recent Developments

Over the years, the experts at KD Market Insights have been observing the recent developments associated with South Korea cloud computing market trends. Our expert’s market forecast analysis has recorded the market players adopting plentiful of key strategies including new product launches, mergers & acquisitions, and collaborations.

Alibaba cloud has announced to launch its second data center in South Korea with the aim to meet growing demand for cloud computing and AI services from local businesses. The launch of second data center is a milestone achieving step in Alibaba Cloud’s efforts to diversify its products and services in South Korea.

SK Group and AWS has entered into partnership to expand cloud infrastructure in South Korea by building innovative and AI application in businesses. The partnership is aimed to build new data center at Ulsan which will begin its operation by 2027 and it will combine industry-leading capabilities of AWS and SK Group to provide top-tier network operations and efficient power infrastructure.

South Korea Cloud Computing Market Competitive Landscape

Some of the significant participants who top the South Korea cloud computing market share:

• Amazon Web Services (AWS)
• Google LLC
• IBM Corporation
• Microsoft Corporation
• Salesforce com Inc
• SAP SE
• Naver Cloud
• Kakao Enterprise
• KT Cloud
• LG CNS