SEOUL, September 10 (AJP) - South Korea unveiled an ambitious plan on Wednesday to transform its manufacturing sector through artificial intelligence, launching a project that brings together more than 1,000 companies, universities and research institutions.
The initiative, led by the Ministry of Trade, Industry and Energy, aims to bridge what officials call a weak link in the country’s industrial base: the lack of collaboration between manufacturers and fast-growing AI firms.
“Our goal is to build an AI-powered manufacturing powerhouse that generates over 100 trillion won in added value by 2030,” Trade Minister Kim Jung-kwan said at the launch ceremony in Seoul. “AI is already transforming every aspect of our daily lives. Especially, Physical AI has become the new battleground in the global economic war.”
The government has outlined 10 alliances under the plan, seven focused on so-called Physical AI — machines capable of perceiving, judging and acting independently — and three targeting manufacturing and services.
One flagship effort centers on autonomous driving.
The government intends to develop software-defined vehicle platforms by 2028 and begin mass production of fully autonomous cars by 2030. To support that timeline, it will invest 1 trillion won (about $722 million) over the next five years in automotive semiconductors, driving simulators and core component technologies.
Another focus is humanoid robotics.
A coalition of 224 institutions, including major companies and universities, will work to build foundation models for general-purpose robots, while developing localized hardware and components. The government hopes to establish a system capable of producing more than 1,000 humanoid units annually by 2029.
The government also plans to apply artificial intelligence to industrial operations, with a goal of deploying 500 AI-enabled factories by 2030. Key players such as Hyundai Motor, Kia, LG Electronics and steelmaker POSCO will collaborate with AI companies and academic researchers to create sector-specific models by 2028.
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