South Korea Bets Big on AI to Revolutionize Manufacturing and Secure Global Edge

South Korea's Ministry of Trade, Industry and Energy announced on Wednesday its plans to invest approximately 4800 billion Korean won (around 3.491 billion USD) this year. This investment will focus on the development of innovative products and services based on artificial intelligence (AI) such as AI-powered factories, AI chips, and autonomous vehicles.

The ministry stated that the primary objective of this investment is to stimulate the industrial application of AI, thereby nurturing new growth engines and driving the evolution of national manufacturing capabilities. This initiative is expected to enhance South Korea's position in the global AI competition, particularly in industrial applications where it anticipates securing a competitive advantage.

The breakdown of the investment includes 627 billion won for AI factory development, 216 billion won for AI chip technology, and 1206 billion won for autonomous driving technology. Additional allocations include 680 billion won for advanced biotechnology, 296 billion won for smart robot development, and 138 billion won for display technology development.

Moreover, the government intends to create foundational AI models usable by small and medium-sized enterprises (SMEs) for quality inspection, precision control, and various manufacturing processes, which is expected to enhance efficiencies and innovation at every level of production.

The anticipated projects further encompass the development of AI semiconductors and sensors, which are integral components that determine AI performance. The focus on these areas underscores the strategic approach to not only improve existing technologies but also facilitate the integration of AI in traditional manufacturing settings.

Recognizing its status as the world's fourth-largest manufacturing nation, South Korea is set to amplify its investments in industrial AI, bringing the potential for leadership in this crucial field. Through this extensive investment, the ministry aims to bolster South Korea's capabilities and strengthen its competitive edge globally.