Assessing the Competitiveness of the Generative Artificial Intelligence Industry in Korea: The Porter’s Diamond Model Approach

The generative artificial intelligence (AI) industry is profoundly influencing technology, economics, and society. Given Korea's strong technology infrastructure and innovation-driven economy, it's crucial to evaluate the competitiveness of its generative AI industry, especially with the global demand for AI-driven solutions on the rise. This study employs Porter’s Diamond Model as a theoretical framework. By analyzing various determinants outlined in the model, drawn from a thorough review of academic journals, industry publications, and government reports, we unveil significant insights across various areas. Despite significant government R&D investment, private investment remains limited, with companies focusing on applications over core technology. This highlights the need for proactive government action to drive innovation. Limited awareness of generative AI calls for educational initiatives and tailored solutions. Enhancing ICT competitiveness requires talent development, regulatory reforms, and government support. Strategic partnerships underscore the importance of government facilitation in advancing the generative AI industry. This research offers valuable findings to promote growth and innovation in Korea's generative AI sector.