South Korea to develop regional Physical AI hubs in manufacturing sectors

South Korean government agencies, local municipalities, and financial institutions have entered a multi-party agreement to establish regional hubs for Physical AI. The initiative aims to integrate artificial intelligence and robotics into the nation’s existing manufacturing sectors to drive industrial transformation.

Under the agreement, Jeonbuk, Gyeongsangbuk-do, and Gyeongsangnam-do will serve as specialized bases. Jeonbuk will focus on automotive and machinery components; Gyeongsangbuk-do will concentrate on hardware related to steel and semiconductor materials; and Gyeongsangnam-do will utilize its aerospace and shipbuilding sectors to collect field verification data.

To support this ecosystem, the Financial Services Commission and various policy and regional banks, including Korea Development Bank and iM Bank, will provide financial assistance. This support is designed to help companies move beyond research and development into the stages of field testing, mass production, and commercialization. The Ministry of Science and ICT also plans to invest approximately 1.4 trillion won in R&D through 2030 to foster core technologies and field verification.