South Korea's government designated physical artificial intelligence as a national strategic industry on the 29th and set a three-year goal to develop a general-purpose foundation model, aiming to localize core technologies and secure leadership in the emerging robotics AI market.
Deputy Prime Minister Bae Kyung-hoon, who also serves as Minister of Science and ICT, unveiled the strategy at the "National Report Session on South Korea's Great Leap Forward Three Mega Projects" held at Cheong Wa Dae. "The golden time to become the top in physical AI is the next three years," Bae said. "The government will designate it as a national strategic industry and lead it directly."
Physical AI enables robots to perceive situations, predict actions, and move autonomously like humans, unlike conventional robots that follow pre-programmed rules. Bae described it as "a major turning point that will transform both industrial sites and daily life."
The push reflects a broader recognition of AI for Government as a critical lever in industrial policy, moving beyond digital service delivery into autonomous systems. The designation as a national strategic industry puts physical AI on par with semiconductors and AI data centers, the other two mega projects the government is advancing.
The data gap behind the three-year deadline
The tight timeline stems from a severe shortage of physical movement data. While generative AI has accumulated roughly 100,000 years' worth of training data, physical AI has only about 10,000 hours' worth, according to Bae. "At the current pace, it could take 100,000 years to reach the same level," he said. Unlike text or images, physical data must be collected individually for each object type governed by different laws of physics.
To bridge this gap, the government will secure real-world on-site data and generate synthetic data through virtual simulations. The aim is to build a general-purpose foundation model based on a world model - a system that understands the real world and predicts actions - within three years. After that, specialized models for specific industries will follow, and the country will localize the full technology stack, including robots, general-purpose models, world models, and network security.
A triangular robot cluster and ₩9 trillion investment
The strategy proposes a three-region cluster: Saemangeum for manufacturing and components, Daegu and Gyeongbuk for certification and verification, and the metropolitan area for industry-academia collaboration. Hyundai Motor Group confirmed it will invest 9 trillion won starting this year to build robot manufacturing facilities and an AI data center in Saemangeum.
Demonstration projects in agriculture, manufacturing, and safety care will receive government support. "We will raise the productivity of key industries by 20% through physical AI to create a super gap, achieve zero industrial accident deaths, and popularize home robots," Bae said.
Why this matters for government professionals
Physical AI's designation as a strategic industry signals that robotics policy is moving from research grants to full-scale industrial mobilization. Civil servants in economic planning, trade, and technology agencies will face steep demands over the next three years in evaluating AI models, managing public-private clusters, and crafting safety regulations for autonomous systems. Implementing the strategy across multiple ministries will require targeted upskilling; an AI Learning Path for Policy Makers offers a structured way for civil servants to build the necessary understanding. Departments that align early with the localization push will be better positioned to influence standards, attract investment, and deliver on the government's productivity and safety commitments.
Your membership also unlocks:
