During his visit to the Gwangju AI Industrial Complex and LG Innotek's facility in Daegu, Koo convened a public-private council to support corporate innovation. He emphasized that the AI and autonomous vehicle industries are high-value sectors that integrate advanced technology and manufacturing. "These are key areas that will drive South Korea's future growth and enhance regional industrial structures, so we must develop Gwangju into a global industrial hub," he said.
The autonomous vehicle sector is a core industry of Physical AI, with the global market expected to grow from $186.5 billion in 2024 to $6.8 trillion by 2035. In response, the government is advancing AI transformation projects, including Physical AI and public AX, supported by a comprehensive budget, tax, and finance package.
The related budget has increased from 3.3 trillion won last year to 9.9 trillion won this year, with plans for significant investments in AI next year. Additionally, the government will establish national strategic technologies for AI and expand tax deductions for data center investments.
Koo also announced plans to support the performance verification and commercialization of key components like LiDAR and radar by establishing a specialized testing and evaluation center for future mobility cognitive components, following Gwangju's designation as an autonomous vehicle demonstration city in April.
"We will continue our efforts to establish Gwangju as a top-three global leader in autonomous vehicles by advancing the autonomous vehicle demonstration city project without delay," Koo stated.
Before the meeting, Koo experienced a demonstration by the AI Industry Convergence Project Group (AICA) using a driving simulator. AICA has created a testing environment for the development and safety evaluation of Level 4 and higher autonomous vehicles.
Following his visit to LG Innotek's Gumi plant, Koo toured the production line and held discussions with experts from robotics, physical AI, and materials and components industries.
Koo emphasized the need for bold Physical AI policies to strengthen the competitiveness of South Korea's AI and robotics industries, stating, "We will fully support research and development for the localization of ultra-precision sensors and actuators and focus on creating initial demand."
Participants in the meeting highlighted the importance of establishing testing environments for robotics and physical AI, as well as building data infrastructure, and called for government support.
The Ministry of Economy and Finance is increasing support for leading Physical AI technology development with a budget of 15 billion won this year, along with 66.7 billion won for human-AI collaboration RAM development and global demonstrations. Additionally, plans are in place to develop a universal world model and a robot foundation model to support the pioneering demonstration of core technologies in local manufacturing sites.
Koo reiterated the commitment to expand the semiconductor ecosystem concentrated in the capital region into a southern semiconductor innovation belt, emphasizing support for the Gumi-based materials and components testing infrastructure to foster it as a key production base for semiconductor materials and components.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.