During his visit to the Gwangju AI Industry Convergence Complex and the LG Innotek 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 combine advanced technology and manufacturing. "These are key areas that will drive South Korea's future growth and enhance the regional industrial structure, 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 promoting AI transformation projects, including Physical AI and public AX, supported by a budget, tax, and financial 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 the AI sector next year. Additionally, the government will establish a national strategy for AI technologies and expand tax deductions for data center investments.
Koo also announced plans to support the performance verification and commercialization of key components such as LiDAR and radar by establishing a specialized testing and evaluation center for future mobility components, following Gwangju's designation as an autonomous vehicle demonstration city in April.
"We will continue our efforts to develop Gwangju into a top-three global autonomous vehicle powerhouse by advancing the autonomous vehicle demonstration city project without setbacks," Koo stated.
Before the meeting, Koo experienced a demonstration of the driving simulator from the AI Industry Convergence Business Group (AICA), which has created a testing environment for developing and evaluating the safety of Level 4 autonomous vehicles.
Following his visit to LG Innotek's Gumi plant, Koo toured the production line and held discussions with experts and representatives from robotics, physical AI, and materials and components companies.
Koo stated, "We will actively pursue bold Physical AI policies to strengthen the competitiveness of the domestic AI and robotics industries, focusing on supporting research and development for the localization of ultra-precision sensors and actuators, as well as creating initial demand."
Participants in the meeting emphasized the importance of establishing testing environments for robotics and physical AI, as well as building data infrastructure, calling for government support.
The Ministry of Economy and Finance is enhancing various supports, including allocating 15 billion won for leading Physical AI technology development and 66.7 billion won for human-AI collaborative RAM development and global demonstrations this year. Additionally, plans are in place to develop a universal world model and a robotic foundation model to facilitate the implementation of Physical AI and support the leading demonstration of core technologies in local manufacturing sites.
Koo reiterated, "We will expand the semiconductor ecosystem concentrated in the capital region into a southern semiconductor innovation belt, focusing on supporting the infrastructure for materials and components in Gumi to nurture it as a key production base for semiconductor materials and components."
* This article has been translated by AI.
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