Science ministry backs regional physical AI hubs with 1.4 trillion won

The science ministry said Wednesday that Deputy Prime Minister Bae Kyung-hoon pledged central government support for regional physical AI clusters, backed by a 1.4 trillion won ($1.04 billion) national research and development program running through 2030.

Speaking at a physical AI regional hub forum at the Korea Development Bank headquarters, Bae said the government has placed physical AI at the center of its three "mega-projects." Under the program, the Ministry of Science and ICT is funding core technology development and on-site testing in North Jeolla and South Gyeongsang provinces, with the aim of spreading results from those regions to companies and industrial sites nationwide.

"What matters is creating a virtuous cycle in which physical AI is not only developed but constantly verified and refined on industrial sites, and those results lead to commercialization, investment and growth backed by finance," Bae said, adding that the ministry will tie the work to regional industrial strengths.

The forum, hosted by the Korea Development Bank, brought together Financial Services Commission Chairman Lee Eok-won, the governors of North Jeolla, North Gyeongsang and South Gyeongsang provinces, and heads of policy financial institutions and regional lenders. Around 30 physical AI companies also attended, and local governments, policy financial institutions and regional banks signed a memorandum of understanding on developing the regional hubs.

Lee said Korea's manufacturing competitiveness and production infrastructure give it an edge in linking factory-floor data, supply chains and production technology to physical AI fields such as robots, AI factories and future vehicles. "Physical AI is not completed in the laboratory but must be learned and verified on the manufacturing floor, and North Jeolla, North Gyeongsang and South Gyeongsang, which have a manufacturing base, are home to manufacturing foundations representing the Republic of Korea," he said. The Financial Services Commission will back regional manufacturing sites as they seek to become physical AI hubs, he added.

Before the forum, Bae toured a technology demonstration featuring quadruped walking robots, robotic hands, autonomous drones and a lunar surface exploration robot developed by Korean companies.

After the opening remarks and the signing, the program continued with a special lecture by Seoul National University robotics professor Park Jong-woo on innovating Korean manufacturing with physical AI, presentations of regional hub development strategies by the three provinces, and briefings on policy financing support by the Korea Development Bank, Industrial Bank of Korea and Korea Credit Guarantee Fund.