Seoul Ranks Second Among Global AI Cities as Investment, Talent and Startups Drive Its Ambitions

Seoul scores 82 points, just behind Singapore

Seoul ranks second in the world for artificial intelligence competitiveness in Counterpoint Research's 2025 Global AI Cities Index, scoring 82 points against Singapore's 84. Beijing places third and Dubai fourth, putting the South Korean capital near the front of a contest built around computing infrastructure, research, investment and skilled workers.

As of August 29, 2025, Seoul's position reflects several connected efforts: national spending on AI and semiconductors, city plans to train 10,000 AI professionals a year, a growing startup sector and investment by companies including SK Telecom, Naver, LG Uplus and Samsung. The city is also bringing AI into healthcare, education, transportation and public services.

The two points separating Seoul and Singapore provide a simple measure of how close their scores are. Their positions also show the strength of cities in the Asia-Pacific region, while Dubai's fourth place puts the Middle East among the leading locations in this ranking.

Seoul's ambition extends beyond a high score. Its plans connect the machines needed to run AI, the people who develop it, the businesses that sell it and the public agencies that use it. That connection matters because an AI system needs more than a promising idea: it needs computing capacity, investment and people able to turn research into useful services.

What the AI city ranking measures

The Global AI Cities Index assesses cities across several parts of their technology economies. Its criteria include the number and impact of AI initiatives, communication and digital infrastructure, university research and collaboration, the strength of the startup ecosystem, and public and private investment.

Seoul's second place brings those elements together. Government leadership supports facilities and training, large companies develop technology and infrastructure, and startups work on products that can reach customers at home and abroad.

Singapore's leading position is attributed to strong digital infrastructure, proactive government policies and a steady pipeline of technology talent. Beijing benefits from China's national AI strategy and a dense concentration of research institutions and major technology companies. Dubai's rise rests on ambitious government initiatives and partnerships with global technology firms.

Seoul's approach combines public investment, corporate innovation and talent development. Its standing among these cities marks its emergence as a global innovation hub, particularly within the Asia-Pacific region, where competition for investment and skilled workers is intense.

National investment backs a Korean AI ecosystem

South Korea is pursuing technological sovereignty and a complete AI infrastructure, from computing hardware to the models and services built on it. In simple terms, the aim is to develop more of the capabilities needed to create and operate AI within the country's own technology ecosystem.

The government has announced a $7 billion investment plan through 2027 to maintain its position in global AI, including $1 billion earmarked for AI semiconductor firms. Semiconductors are the chips that provide computing power, making them a central part of the effort to build stronger AI capabilities.

An additional $11.56 billion is planned over the next five years to secure advanced graphics processing units, expand AI data centers and develop native AI models suited to Korean language and culture. Graphics processing units, commonly called GPUs, provide computing capacity for developing and running AI systems.

The spending addresses different parts of the same task. Chips supply computing power, data centers house the equipment, and AI models provide the underlying technology used to build applications. Developing models tailored to Korean language and culture also connects national infrastructure plans with the needs of local users.

Five teams have been selected to lead South Korea's sovereign AI foundation model project: SK Telecom, LG AI Research, Naver Cloud, Upstage and NC AI. A foundation model is an underlying AI model that can support different applications. The selection brings major companies and other AI developers into a shared national effort.

Seoul plans a larger technology hub and annual training

Seoul's city strategy pairs the national investment push with facilities, funding and workforce development. Its plans include training 10,000 AI professionals annually and establishing Seoul AI Tech City, a hub intended to be ten times larger than the current AI Hub.

A proposed investment fund of 500 billion won, about $370 million, is intended to support AI startups. The city also plans to expand support for GPU servers and AI infrastructure and strengthen collaboration with international academic institutions and companies.

Mayor Oh Se-hoon set out the city's ambitions at the AI SEOUL 2025 conference. He said Seoul aims to become one of the world's top three AI powerhouses by integrating AI across sectors, encouraging bold investment and attracting talent.

The city's public sector is taking part through events such as Seoul AI Festa and Smart Life Week, which promote public adoption of AI. Administrative changes include a new public data platform and the restructuring of the Seoul Digital Foundation into the Seoul AI Foundation.

For residents and businesses, these measures connect the city's technology ambitions with public services and access to infrastructure. Training expands the pool of people able to work with AI, while startup funding and computing support help companies develop their products.

Large companies supply computing power and chips

SK Telecom, Naver, LG Uplus and Samsung are central to Seoul's AI development. Their role sits alongside government investment, linking corporate technology work with the infrastructure and applications needed by businesses and public agencies.

SK Telecom has partnered with Amazon Web Services, or AWS, to launch the Ulsan AI Data Center. The facility is designed to provide computing capacity on a very large scale for the generative AI era. Generative AI refers to systems that produce content, rather than simply sorting or identifying information.

The Ulsan facility, SK Telecom's Gasan AI Data Center and its Edge AI initiatives form part of Korea's AI infrastructure strategy. Edge AI involves processing information closer to where it is collected or used. These efforts support applications for business customers and the public sector.

Samsung's leadership in AI chips and the work of startups such as Rebellions contribute another part of the local ecosystem. Their involvement links semiconductor development with the broader push to provide the computing resources AI requires.

The national foundation model project adds a further connection between public policy and private development. SK Telecom, LG AI Research, Naver Cloud, Upstage and NC AI are tasked with helping build the underlying models, while infrastructure projects supply capacity for an expanding range of uses.

Startup growth gives Seoul another competitive advantage

Seoul rose to eighth place globally in the Global Startup Ecosystem Report 2025, surpassing Singapore and Tokyo. That position adds a separate measure of business activity to its second place in the AI city ranking.

The city has invested more than 906 billion won in research and development since 2005, supporting more than 4,000 projects. Those projects have generated sales and jobs, linking public research spending with commercial activity.

Seoul's Vision 2030 Fund aims to raise 5 trillion won by 2026. Its goals are to nurture 50 unicorn companies and place Seoul among the world's top five startup cities by 2030. A unicorn is a privately held startup valued at at least $1 billion.

The city's priority industries include AI, biotechnology, financial technology, robotics and creative industries. Its strong scores for knowledge accumulation and financing reflect the importance of both research capabilities and access to money in building new companies.

Seoul has also shown an ability to recover money invested in startups while fund recovery declined globally. Recovering investment gives financiers resources that can be directed toward further business development, making it a useful part of a continuing investment cycle.

The principal dates and targets span several stages:

• Since 2005: Seoul has invested more than 906 billion won in research and development, supporting more than 4,000 projects.
• 2025: Seoul ranks second in the Global AI Cities Index and eighth in the Global Startup Ecosystem Report.
• By 2026: The Seoul Vision 2030 Fund aims to raise 5 trillion won.
• By 2027: South Korea's announced $7 billion AI investment plan is intended to support its global competitiveness.
• By 2030: Seoul aims to nurture 50 unicorn companies and enter the world's top five startup cities.

Talent and research connect the different investments

Seoul's plans to attract and train workers are central to its AI ambitions. The city has consistently ranked among leading global cities for talent competitiveness, supported by its universities, cultural life and quality of life.

The Global Talent Competitiveness Index highlights Seoul's efforts to involve citizens in policy design, focus on quality of life and create conditions that attract both domestic and international talent. These elements connect technology development with the wider experience of living and working in the city.

Seoul has also been selected as the favorite global city for the MZ generation, meaning millennials and Generation Z, for four consecutive years. Its dynamic urban environment and opportunities for technology careers contribute to its appeal to younger people.

Universities and research institutions provide another foundation. Seoul ranked fifth for research and development among 48 major global cities in the 2024 Global Power City Index. Collaboration between universities and industry helps turn research into practical applications.

The annual goal of training 10,000 AI professionals fits into that wider effort. Investment in facilities creates capacity, while researchers and skilled workers develop the systems and applications that make use of it.

Traffic technology shows AI reaching customers abroad

Nota AI provides a practical example of Korean AI technology moving into transportation. The company specializes in model compression and optimization, work that makes AI models smaller and more efficient to operate.

At the 2025 ITS World Congress in Atlanta, Nota AI showcased intelligent transport systems using generative AI. ITS stands for intelligent transport systems, technologies used to support the monitoring and management of transportation.

Its solutions include detection of incidents as they happen and traffic management. The technologies have been deployed in Korea and internationally, including through a commercial agreement with Dubai's Roads and Transport Authority.

The Dubai agreement connects Seoul's wider technology ambitions with a concrete overseas customer. It also shows how an AI business can move from developing a model to selling a service that addresses an everyday task, in this case monitoring roads and managing traffic.

Such applications support Seoul's role as a place where new technologies can be developed and put into practice. They also connect the city's startup and research strengths with its ambition to export AI solutions globally.

Broader city rankings support Seoul's technology appeal

Seoul's standing extends beyond AI. Japan's Mori Memorial Foundation ranked it sixth among 48 major cities in the 2024 Global Power City Index, with strong results for accessibility, livability and research and development.

Mayor Oh's policies to expand housing, improve transportation and invest in creative sectors have contributed to those gains. These areas matter to the city's technology ambitions because businesses need workers who can reach their workplaces and find suitable places to live.

The Global Innovation Hubs Index 2024 also recognizes Seoul as a leading innovation hub alongside San Francisco, New York, Beijing and London. Its position reflects development across research, the innovation economy and the surrounding ecosystem.

Together, the rankings describe several connected strengths: AI competitiveness, startup activity, research capacity and the wider conditions of city life. Seoul's balanced development across those areas offers a model for other cities seeking to build innovation hubs.

Demographic pressure tests the ambition

South Korea's rapidly aging population, low fertility rate and political divisions pose risks to sustained growth and innovation. Projections suggest economic growth could fall below 1% by 2050 unless structural reforms are implemented.

Seoul's effort to maintain momentum includes attracting and retaining global talent, encouraging entrepreneurship, investing in emerging technologies such as quantum computing, managing geopolitical risks and strengthening international partnerships.

Removing administrative and nationalistic barriers is part of the argument for allowing highly skilled people to contribute. Keeping local initiatives connected with global trends and standards is also relevant as Seoul seeks international researchers, companies and customers.

The United States and China remain dominant in AI, while Seoul, Singapore, Dubai and other cities in the Asia-Pacific region and Middle East are closing the gap. A wider spread of AI leadership offers more opportunities for competition, innovation and cooperation across borders.

Seoul's second place brings that shift into focus. Its ambitions depend on bringing talent, infrastructure, investment and an entrepreneurial culture together, while addressing the demographic and economic pressures that could make continued growth harder.

Key Points

• Seoul scored 82 points in the 2025 Global AI Cities Index, behind Singapore's 84, with Beijing third and Dubai fourth.
• South Korea announced $7 billion in AI investment through 2027, including $1 billion for AI semiconductor firms, plus an additional $11.56 billion planned over five years.
• Seoul plans to train 10,000 AI professionals annually, build a larger AI technology hub and establish a startup fund of 500 billion won.
• Seoul ranked eighth in the Global Startup Ecosystem Report 2025 and aims to enter the top five by 2030.
• Corporate infrastructure, university research and businesses such as Nota AI connect investment with practical applications and overseas customers.
• Population aging, low fertility, political divisions and the need to retain skilled workers remain challenges to sustained growth.