Korea’s Big 3 Ad Agencies

The South Korean advertising landscape has undergone a total transformation. Digital platforms now command over 75% of the total market share. Consequently, traditional media like newspapers have entered a terminal decline.

This shift follows a dramatic change in consumer behavior across the nation. Specifically, the smartphone penetration rate in Korea has now exceeded 95%. This high connectivity allows for constant access to social platforms.

Younger consumers in their 20s and 30s have largely abandoned printed news. Instead, they consume content through YouTube, Instagram, and short-form video platforms. Therefore, traditional newspaper contact among this demographic is nearly non-existent.

The financial data confirms this massive migration to digital spaces. Digital advertising spend officially surpassed the 11 trillion KRW mark recently. Meanwhile, the market share for newspapers and magazines has plummeted to below 5%.

Leading agencies like HSAD, Cheil Worldwide, and Innocean are leading this charge. These firms now allocate more than 65% of their total budgets to digital initiatives. They are effectively standardizing AI-driven and commerce-linked campaigns.

Smaller traditional media outlets face an increasingly dire future in this environment. Many local newspapers are accelerating their closure processes due to dwindling ad revenue. The industry has reached a point where digital integration is no longer optional.

1. HSAD: Pioneers of the AI Transformation Strategy

HSAD serves as the creative arm of the LG Group. It rebranded as a Marketing Creative Company in 2024. HSAD prioritizes digital customer experience management for its global clients.

HSAD launched the DASH AI platform in late 2024. It integrates data with creative storytelling tools. HSAD automates high-quality content production for diverse global brands.

Furthermore, HSAD introduced the DASH FLOW orchestration system in 2025. It allows employees to design AI agents using natural language. Productivity has increased significantly across the organization.

The firm won five top prizes at the 2025 Digital Advertising Awards. HSAD focuses on full-funnel marketing to drive business growth. It continues to set standards for AI-driven creativity.

2. Cheil Worldwide: Samsung’s Global Creative Engine

Cheil Worldwide remains the largest advertising agency in Korea. It started in 1973 as a Samsung house agency. Now, Cheil Worldwide operates 54 offices in 46 countries.

Cheil Worldwide recorded a 1.72 trillion KRW profit in 2024. Digital business and BTL sectors drove this growth. Therefore, Cheil Worldwide maintains undisputed market leadership.

The agency is pursuing a Meta-formation strategy currently. It invests heavily in the metaverse and NFT technologies. Cheil Worldwide leads virtual marketing innovation for the next generation.

Moreover, Cheil Worldwide ranks first in the WARC Asia Creative list. It manages global projects for Samsung and Little Caesars. Cheil Worldwide is a true global powerhouse today.

3. Innocean: Driving Innovation in the Mobility Era

Innocean launched in 2005 for the Hyundai Motor Group. It employs 3,600 people across 46 global networks today. Innocean handles massive global brand campaigns for automotive leaders.

Innocean recently declared its AI Transformation era. It aims for a fully AI-centered model by 2027. Therefore, Innocean is redefining the future of brand experience.

The agency introduced its AiINN platform in 2025. It optimizes content planning and distribution workflows. Innocean improved its overall work efficiency by 30% through this tool.

Additionally, Innocean won eight Grand Prix awards in 2025. It also partners with Google to train advanced AI models. Innocean leads in creative technology and mobility integration.

The Future of the Korean Advertising Landscape

In conclusion, these top three agencies shape Korea’s global presence. They use AI to bridge the gap between technology and creativity. They remain essential partners for global businesses in 2026.