Amazon subsidiary to invest $5 billion in South Korea, presidential office says
News Summary
Amazon Web Services (AWS) plans to invest at least $5 billion in South Korea by 2031 to build new artificial intelligence data centers, leveraging Seoul's ambition to become an AI hub in Asia, according to South Korea's presidential office. This announcement was made during AWS CEO Matt Garman's meeting with South Korean President Lee Jae Myung on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit. Amazon is one of seven global firms whose executives met with President Lee in Gyeongju, pledging a total of $9 billion in investments over the next five years. President Lee highlighted that Amazon's investment will accelerate the growth of South Korea's AI industry ecosystem, as the country aims to become one of the world's top three AI leaders. Garman stated that AWS has committed an additional $40 billion across 14 non-U.S. APEC countries and economies by 2028, which he believes will drive an additional $45 billion in U.S. GDP. AWS had previously unveiled a $4 billion investment plan in South Korea in June as part of SK Group's efforts to build the country's largest data center in Ulsan. Earlier this month, South Korea's presidential office also mentioned OpenAI's plans to set up joint ventures with Samsung and SK to build two
Background
South Korea is actively pursuing its strategy to become an AI hub in Asia, which has attracted the attention of global tech giants. Previously, in June 2025, AWS had already announced a $4 billion investment in South Korea as part of SK Group's plan to build the country's largest data center in Ulsan, indicating its long-term strategic presence in the region. This investment was announced during the APEC summit, providing South Korea with a platform to showcase its economic attractiveness and technological potential. During the meeting, seven global firms, including Amazon, collectively pledged $9 billion in investments for South Korea over the next five years. Furthermore, OpenAI also announced earlier this month its plans to partner with Samsung and SK Group to build two "Korean-style Stargate" data centers in South Korea, underscoring the country's growing importance in global AI infrastructure development.
In-Depth AI Insights
What are the core drivers and potential strategic returns behind Amazon's substantial investment in South Korea? - Beyond simply meeting the rapidly growing demand for AI computing power, a deeper objective is to solidify AWS's dominant position within the Asian AI ecosystem. By deeply integrating with South Korea's AI hub strategy, AWS not only secures critical infrastructure but also lays the groundwork for future localized AI application, service, and talent development, establishing a strong first-mover advantage. - This also represents strategic economic support for a U.S. ally, aligning with the Trump administration's