OpenAI's establishment of its third Asian office in South Korea—its largest market in the Asia Pacific region—coincides with growing investor concerns over AI-related regulatory and ethical risks, prompting a shift in market sentiment from optimism to caution.
- OpenAI launched its third Asian office in Seoul, South Korea, its largest market in the Asia Pacific region by paid subscription.
- South Korea contributed $180 million in OpenAI subscription revenue in the last fiscal quarter, up 42% year-over-year.
- Enterprise client base in South Korea grew by 63% in 2025.
- OpenAI’s implied valuation declined 17% over six weeks amid regulatory concerns.
- EU’s proposed AI Liability Directive and U.S. disinformation legislation are increasing legal risks for AI providers.
- Despite growth in Asia, investor sentiment has shifted toward caution due to escalating AI governance risks.
OpenAI has formalized its regional footprint in Asia by launching its third office in Seoul, South Korea, underscoring the country’s status as the company’s most significant market in the Asia Pacific region based on paid subscription volume. The move marks a strategic expansion as OpenAI intensifies its push into high-growth tech markets despite mounting scrutiny over artificial intelligence deployment and governance. Investors are now reevaluating OpenAI’s long-term value proposition, with market indicators reflecting a shift in sentiment. While subscription revenue in South Korea reached $180 million in the last fiscal quarter—representing a 42% year-over-year increase—concerns about potential regulatory crackdowns in the EU and U.S. have led to a 17% decline in OpenAI’s implied valuation over the past six weeks. Analysts note that heightened focus on AI safety, data privacy, and algorithmic transparency is increasingly influencing investor risk assessments. The expansion into South Korea, where OpenAI’s enterprise client base grew by 63% in 2025, highlights the company’s aggressive pursuit of commercialization. However, this growth is counterbalanced by regulatory headwinds: the European Commission has proposed an AI Liability Directive that could expose providers like OpenAI to higher financial exposure, while U.S. lawmakers have advanced legislation targeting AI-generated disinformation. Market participants are now observing a bifurcation in sentiment. While tech stocks tied to AI infrastructure—such as NVIDIA and Microsoft—remain resilient, OpenAI’s non-public equity value has seen downward pressure, signaling investor wariness about the sustainability of rapid scaling amid legal and ethical challenges.