South Korea allocates roughly $12 bn to accelerate physical AI across manufacturing and energy sectors

The South Korean government’s National Growth Fund will provide about 16 trillion won this year to six physical‑AI fields, including AI factories, robotics, future vehicles, defense, semiconductors and batteries. The fund aims to identify and support leading companies and mega‑projects that can position the country as a global leader in physical AI, with the first investment directed to LS Cable & System’s expanded ultra‑high‑voltage submarine cable plant.

Finance Minister Choi Jong‑kun said the fund will act as a “strong engine to promote private investment” and emphasized that “physical AI will greatly enhance productivity and create new growth drivers.” Analyst Shin Young‑seok added that Korea’s “manufacturing capabilities and swift industrial transition are key foundations to capture new growth opportunities in the physical‑AI era.”

Separately, SK AX signed an MOU with Korea Electric Power Technology to introduce AI platforms into power‑generation and energy‑industry workflows. The partnership will deploy SK AX’s AI project‑management tools across design, construction, operations and maintenance, including a joint offshore‑wind O&M platform. SK AX President Kim Wan‑jong described the energy sector as one where “AI innovation demand is rapidly expanding from design through operation and maintenance,” while KEPCO Technology’s president highlighted AI as a “must‑have task” for future power‑industry advancement.