Google Cloud Targets Korean Enterprise AI Market ... "Enterprise Data Stored in Korea"

Securing Data Residency in Korea
First Among Global Cloud Companies

Google Cloud is the first global cloud company to support Korean companies using generative artificial intelligence (AI) services in storing their data domestically. This is to eliminate concerns about customer data being leaked overseas or used for AI training. It is a strategy to target the rapidly growing demand for enterprise generative AI in the Korean market.

On the 14th, Google Cloud Korea held the 'Google Cloud Summit Seoul Media Briefing 2023' at the Grand Intercontinental Parnas Hotel in Samseong-dong, Gangnam-gu, Seoul, and announced that it would guarantee 'data residency' for enterprise customers using the 'Vertex AI' platform. Vertex AI is a Google Cloud solution that allows developers to create customized models or applications using internal corporate data.

Kang Hyung-jun, President of Google Cloud Korea [Photo by Google Cloud Korea]

Data residency refers to the physical and geographical location of corporate data or personal information. With Google Cloud securing data residency in Korea, domestic customers can choose Korea as the location to store their data. Google Cloud supports data residency in a total of 10 countries when providing Vertex AI services. In the Asia-Pacific region, Korea, Japan, and Singapore are the supported locations.

As more companies show interest in generative AI services, demands for data storage locations are also increasing. This is to prevent the leakage of proprietary corporate data overseas or its use in AI model training. Kang Hyung-joon, head of Google Cloud Korea, explained, "We will store data domestically and allow customers to manage encryption keys that control it," adding, "This means that not only the data input by enterprise customers into AI but also the tunnels transmitting this data will be encrypted."

Google Cloud’s support for data residency in Korea reflects the importance of the market. The Korean market is fiercely competitive, with global companies such as Microsoft (MS) and IBM, as well as domestic companies like Naver, KT, and LG. Kang said, "Among companies, there is so much interest that budgets are only allocated if it is for generative AI," and added, "Google Cloud will support enterprises in improving productivity and creating new businesses through AI and cloud technologies."