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Technology
26 March 2025

Microsoft CEO Satya Nadella Unveils AI Strategy In Korea

During his visit, Nadella announces new AI agents and strategic partnerships with local firms.

Microsoft Chairman and Chief Executive Officer Satya Nadella has made a significant return to Korea for the first time in over two years, unveiling the tech giant’s ambitious artificial intelligence (AI) innovation strategy while fostering collaborations with key Korean firms. His keynote speech was delivered during the "Leading in the Age of AI Transformation" session at the Microsoft AI Tour held in Seoul on March 26, 2025.

In his address, Nadella emphasized the transformative impact of AI on daily life and work in Korea, stating, "AI is rapidly transforming the way people in Korea live and work. It is truly inspiring to witness Korean companies across industries such as consumer goods, energy, retail, and telecommunications actively adopting AI to drive new growth and opportunities." His remarks set the stage for the introduction of two new AI agents, Researcher and Analyst, which were unveiled for the first time globally in Korea.

The Researcher agent combines OpenAI's o3 inference research model with Copilot’s deep search functionality, enabling businesses to conduct sophisticated analytical tasks such as market strategy development and quarterly meeting research. The Analyst agent, on the other hand, leverages advanced reasoning models to assess fragmented data, helping businesses predict product demand and analyze consumer purchasing patterns.

These AI agents will be gradually introduced through the Frontier program, with availability for Microsoft 365 Copilot license holders starting in April 2025. Nadella also highlighted Microsoft's strategic partnership with KT Corp, which was established in September 2024, involving a joint investment of 2.4 trillion won (approximately $1.65 billion) over the next five years. This partnership aims to drive AI solutions and cloud service development while nurturing domestic AI talent.

"I'm super proud we can partner with KT to really ensure that we can bring the next level of capability that is right there locally, built around our platforms to enable the rest of the Korean economy," Nadella remarked, underscoring the importance of local collaboration.

During his visit, Nadella engaged with top executives from major domestic companies to explore expanded AI collaborations. On March 26, he met with LG Electronics CEO Cho Joo-wan and LG CNS CEO Hyun Shin-kyoon, as well as Korea Development Bank Chairman Kang Seog-hoon. These meetings were part of a broader effort to discuss AI agent co-development and potential business expansion strategies.

Prior to his meetings in Seoul, Nadella met with Amorepacific Chairman Suh Kyung-bae and CEO Kim Seung-hwan on March 25, where they discussed integrating AI technologies into the beauty industry. Nadella mentioned Amorepacific’s project to develop an AI beauty counselor powered by Microsoft’s Azure AI platform, which aims to offer personalized skincare recommendations.

At KT's headquarters, Nadella met with KT CEO Kim Young-shub and HD Hyundai Executive Vice Chairman Chung Ki-sun to discuss the ongoing partnership, which includes plans for a Korea-tailored AI model and enterprise AI services. The two companies are also in the process of recruiting a 300-member task force to manage and promote co-developed products.

Moreover, Nadella announced an educational initiative with KT aimed at enhancing public AI literacy. This initiative will include an educational curriculum on AI technology and the establishment of a dedicated learning center. "We are also very mindful that one of the most important things we must collectively do is to ensure the broad diffusion of skills around AI," Nadella stated during his keynote speech.

The Microsoft AI Tour, held at the Yangjae aT Center in Seocho-gu, featured around 30 sessions showcasing Microsoft's latest innovations and real-world applications of AI, alongside discussions on global industry trends. Nadella’s keynote titled "Leading Change in the Era of AI Innovation" highlighted the importance of AI in shaping future economies.

This event marks Nadella’s first visit to Korea in approximately two years and four months, since November 2022. His presence underscores the significance of the Korean market to Microsoft, as it seeks to establish a robust AI ecosystem in the region.

At the event, Nadella also held informal meetings with leaders from various Korean AI startups, including Wrtn Technologies, Upstage, Liner, and Mathpresso, to discuss potential collaboration opportunities. The meetings reflect Microsoft’s commitment to integrating local innovations into its global strategy.

In conclusion, Nadella’s visit to Korea not only reinforces Microsoft’s dedication to advancing AI technology but also highlights the collaborative spirit between U.S. tech giants and Korean companies. As the AI landscape continues to evolve, partnerships like those formed during this visit are likely to play a crucial role in driving innovation and economic growth in both markets.