South Korea Software Market Size, Share, and COVID-19 Impact Analysis, By Type (Application Software, System Infrastructure Software, Development and Deployment Software, Productivity Software), By Deployment Mode (On-premises, Cloud-based), and South Korea Software Market Insights, Industry Trend, Forecasts to 2035.

South Korea Software Market Insights Forecasts to 2035

• The South Korea Software Market Size was estimated at USD 9.62 Billion in 2024
• The Market Size is Expected to Grow at a CAGR of around 3.98% from 2025 to 2035
• The South Korea Software Market Size is Expected to Reach USD 14.78 Billion by 2035

According to a research report published by Spherical Insights & Consulting, The South Korea Software Market Size is Anticipated to reach USD 14.78 Billion By 2035, Growing at a CAGR of 3.98% from 2025 to 2035. The rising technological innovations, increasing ranks of highly qualified and skilled labor force especially in the science, technology, engineering, and math (STEM) sector, and the introduction of various programs and policies fostering research and development (R&D), startup development, and digitalization are among the most important drivers of the market.

Market Overview

South Korea software market is the business of developing, distributing, and utilizing software solutions in diverse sectors. It encompasses application software, system infrastructure software, development and deployment software, and productivity software. Additionally, the market is mainly driven by the rising technological developments. Further, South Korea houses a number of top-tier technology firms including Samsung and LG. These companies are major hardware players and further invest in software development which is fueling the market growth. South Korea's developments in sectors like fifth-generation (5G) technology are further driving the software sector, enabling more advanced and high-speed services. In addition, the application of a number of initiatives and policies supports research and development (R&D), startup development, and digitalization. Moreover, the government's emphasis on the Digital New Deal has the objective of speeding up the digitalizing of the economy and enhancing the software industry, which is another key growth driver.

Report Coverage

This research report categorizes the market for the South Korea software market based on various segments and regions and forecasts revenue growth and analyses trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the South Korea software market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the South Korea software market.

Driving Factors

The fast-growing adoption of new technologies and increasing tech-savvy populations are willing to accept new digital solutions, making it a big, accepting market for software products, and prompting domestic and overseas companies to invest in the South Korean software industry. With this, the increasing number of highly educated and skilled labor, especially in the fields of Science, Technology, Engineering, and Mathematics (STEM), are driving the market growth. Also, the nation's focus on training and education in technology fields is building a talent base that can effectively address the growing needs of the burgeoning software industry.

Restraining Factors

Most South Korean businesses still maintain legacy systems that are not so easily compatible with contemporary software solutions. It can be complicated, expensive, and time-consuming to integrate new software with such existing infrastructures, thus offering a major challenge for companies seeking to modernize their operation.

Market Segmentation

The South Korea software market share is classified into type and deployment mode.

• The application software segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea software market is segmented by type into application software, system infrastructure software, development and deployment software, productivity software. Among these, the Application software segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. This segment continues to be the biggest revenue-generating category, led by growing demand for enterprise solutions, cloud-based applications, and AI-powered software.

• The cloud-based segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period.

The South Korea software market is segmented by deployment mode into on-premises and cloud-based. Among these, the cloud-based segment held a significant share in 2024 and is expected to grow at a significant CAGR during the forecast period. the South Korean software market, driven by facilitative government policies, technology infrastructure, and growing enterprise adoption. This shift supports overall trends towards cloud computing on a worldwide scale, placing South Korea at the forefront of the digital transformation arena.  

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the South Korea software market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• Samsung SDS
• NCSOFT
• Daou Data
• Kakao
• LG CNS
• HYUNDAI AUTOEVER
• S-1 Corporation
• Netmarble
• NHN Entertainment
• Toss (Viva Republica)
• Others

Recent Developments:

• In April 2025, the government, academia, and robot manufacturing businesses formed the K-Humanoid Alliance to conducted research and development on humanoid robots.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at South Korea, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the South Korea software market based on the below-mentioned segments:

South Korea Software Market, By Type

• Application Software
• System Infrastructure Software
• Development and Deployment Software
• Productivity Software

South Korea Software Market, By Deployment Mode

• On-premises
• Cloud-based