Physical AI Transformation Hinges on Regulatory Reform, Bold Policy

Opinion|
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By The Editorial Board
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President Lee Jae-myung delivers a congratulatory address through Lee Kyu-yeon, Senior Presidential Secretary for Public Relations, at the opening ceremony of "Seoul Forum 2026," held under the theme "Beyond Intelligence: A New Engine for Industry," at the Shilla Hotel in Jung-gu, Seoul, on the 27th. Photo by Oh Seung-hyun - Seoul Economic Daily Opinion News from South Korea
President Lee Jae-myung delivers a congratulatory address through Lee Kyu-yeon, Senior Presidential Secretary for Public Relations, at the opening ceremony of "Seoul Forum 2026," held under the theme "Beyond Intelligence: A New Engine for Industry," at the Shilla Hotel in Jung-gu, Seoul, on the 27th. Photo by Oh Seung-hyun

The Seoul Forum 2026, hosted by Seoul Economic Daily on the 27th, presented forward-looking proposals to secure industrial competitiveness in the era of artificial intelligence (AI) transformation. Held under the theme "New Core, New Industry," the forum brought together global scholars, domestic and international industry experts, and political and business leaders, reaffirming that AI has moved beyond a mere tool of technological competition to become a critical factor determining the fate of industrial supremacy.

Michael Perry, head of commercial strategy at Persona AI, delivered the opening keynote titled "The Era of AI-Empowered Superhumans: Expanding the Value of Robotics." "The winners in the physical AI era will be companies with highly advanced on-site adaptation systems," Perry said. "Korean firms with manufacturing competitiveness have a strong chance of taking the lead in the market." In his congratulatory address, President Lee Jae-myung said, "Who applies AI technology most effectively to industrial sites will determine national competitiveness."

Physical AI is a key weapon to ensure the sustainable growth of Korean manufacturing. If Korea's manufacturing sector properly integrates physical AI with its world-class industrial robot infrastructure and the high-quality data pouring out of its global manufacturing ecosystem — semiconductors, automobiles, steel, and shipbuilding — it can elevate its manufacturing competitiveness by several levels. Taking note of this, the government set "world No. 1," not "top three," as its goal in physical AI through last year's economic growth strategy.

However, many challenges must be overcome. Above all, a flexible response to labor market changes from the spread of physical AI is crucial. While focusing on technology adoption, efforts must also be made to devise ways to harmoniously integrate human labor. In a special lecture at the forum, Su-In Lee, professor at the University of Washington, stressed, "Future AI research must consider not only technological innovation but also its impact on society."

The regulatory environment must also be reshaped to be friendly to the AI industry. The United States and the European Union (EU) are calibrating the speed and intensity of AI regulations to keep China in check and strengthen industrial competitiveness. By contrast, Korea became the first country in the world to enact the AI Framework Act this January, but there are widespread concerns that its vague and broad provisions could become an obstacle to innovation. For Korea, which has fallen behind the United States and China in generative AI, physical AI is both an opportunity and a stroke of luck. It is time to secure leadership in the physical AI era through bold regulatory reform and unconventional policy support.

Original reporting by The Editorial Board 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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