<p>This article examines how nation-states and private organizations utilize the digital landscape to enhance their soft power and public diplomacy. It integrates the Korean Wave and AI technology within the context of soft power, particularly digital soft power, examining how Korea has transformed its public diplomacy in the era of AI and digital platforms. It explores not only the increasing role of AI and its contribution to public diplomacy but also examines how digital soft power has become the primary engine in public diplomacy. Then, it discusses how the Korean government and the private sector, including cultural industries firms and digital platforms, utilize digital soft power to enhance national image and the national economy. Finally, it critically discusses the challenges that digital soft power faces, focusing on a handful of socio-technical issues inherent in AI-driven cultural diplomacy.</p>