Korea Bets on Physical AI to Break Manufacturing Slowdown, Targets Top 3 in Robotics

■Robotics Venture Forum Government Vows R&D, Infrastructure, Corporate Support Robot Startup CEOs Share Experiences

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By Kim Ji-won
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Choi Yeon-woo, Director General for Industrial AI Policy at the Ministry of Trade, Industry and Energy, explains the government's robotics policy direction at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun - Seoul Economic Daily Technology News from South Korea
Choi Yeon-woo, Director General for Industrial AI Policy at the Ministry of Trade, Industry and Energy, explains the government's robotics policy direction at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun

"The growth rate of manufacturing, which drove our country's economic growth, has fallen from 6.8% in 2008 to 1.8% in 2023, revealing its limits. Korea has the world's highest robot density per capita and possesses the semiconductor and battery supply chains needed to develop artificial intelligence (AI) robots. The new key we have found based on this is physical AI."

Choi Yeon-woo, Director General for Industrial Artificial Intelligence Policy at the Ministry of Trade, Industry and Energy (MOTIE), made these remarks on the 28th at the special "Robotics Venture Forum" of "Seoul Forum 2026," held at the Shilla Hotel in Jung-gu, Seoul. Choi said that for Korea to become one of the top three robotics powers, growth across the entire ecosystem is critical, adding that the ministry launched the robotics division of the "M.AX Alliance" last year, connecting hardware, parts, and demand-side companies.

Government support for expanding the robotics ecosystem is being pursued along three main tracks: research and development (R&D), infrastructure construction, and support for individual companies. First, in the R&D area, the government is particularly emphasizing field demonstrations. It is currently conducting joint demonstrations with large corporations in four to five fields. R&D funding this year stands at 173.5 billion won, a significant increase from last year. "On the infrastructure side, robotics is highly likely to be designated as a flagship industry under the '5 Poles, 3 Specialized Zones' (five super-wide growth hubs and three specialized zones) balanced development strategy," Choi explained. "Accordingly, the robotics industry will be able to receive a package of tax benefits, subsidies, and workforce support." The government will also help robotics firms expand demonstrations to create demand, alongside efforts through the National Growth Fund as well as guarantee and lending programs.

At the event, startup CEOs shared their experiences and discussed the importance of close collaboration across the entire robotics ecosystem. "The reason our company has drawn global attention with its foundation model specialized in the five fingers is that there was close collaboration among multiple companies in data pipelines, sensors, and actuators," said Lee Kang-wook, business CEO of RealWorld.

From left, Kim Kee-eung, head of the National AI Research Hub and KAIST professor; Hwangbo Je-min, CEO of Lion Robotics; Lee Kang-wook, business head of Real World; Moon Tae-yeon, CEO of Carbon Six; Lee Yoon-haeng, CEO of Aidin Robotics; and Choi Yeon-woo, Director General for Industrial AI Policy at the Ministry of Trade, Industry and Energy, take part in a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun - Seoul Economic Daily Technology News from South Korea
From left, Kim Kee-eung, head of the National AI Research Hub and KAIST professor; Hwangbo Je-min, CEO of Lion Robotics; Lee Kang-wook, business head of Real World; Moon Tae-yeon, CEO of Carbon Six; Lee Yoon-haeng, CEO of Aidin Robotics; and Choi Yeon-woo, Director General for Industrial AI Policy at the Ministry of Trade, Industry and Energy, take part in a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun

Suggestions also emerged that support should be specifically organized by category so that excellent robotics products made in Korea can be adopted domestically first. "As cheap Chinese robot parts have entered the market, domestic parts are often not selected," said Lee Yoon-haeng, CEO of Aidin Robotics. "The domestic robotics market can only be activated if companies are encouraged to use domestic products."

Lee Kang-wook, business head of Real World, speaks during a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun - Seoul Economic Daily Technology News from South Korea
Lee Kang-wook, business head of Real World, speaks during a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun

During the Q&A session that followed, Lee Dae-hee, CEO of Korea Venture Investment, asked about "the difficulties faced in meeting overseas investors." Moon Tae-yeon, CEO of Carbon Six, said, "Channels to meet U.S. venture capital (VC) firms are important, but it would be helpful if there were support for demonstration cases that connect references built up in Korea and Asia to the U.S. market."

Lee Yoon-haeng, CEO of Aidin Robotics, speaks during a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun - Seoul Economic Daily Technology News from South Korea
Lee Yoon-haeng, CEO of Aidin Robotics, speaks during a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun

The speakers also offered advice for prospective entrepreneurs and students attending the forum. "Starting a year before founding the company, I met with investors and thought hard about how to develop the technology in a way that would be commercially viable," said Hwangbo Je-min, CEO of Lion Robotics. "If you meet diverse people and thoroughly explore the support available from universities and the government, you'll be able to run your business more smoothly."

Hwangbo Je-min, CEO of Lion Robotics, speaks during a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun - Seoul Economic Daily Technology News from South Korea
Hwangbo Je-min, CEO of Lion Robotics, speaks during a panel discussion at the Robotics Venture Forum, a special forum of Seoul Forum 2026, held at the Shilla Seoul in Jung-gu, Seoul, on the 28th. Photo by Oh Seung-hyun

Original reporting by Kim Ji-won for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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