The Science Ministry unveils next year’s plan with 121 billion won for three new physical AI projects: physical AI core technology development, training infrastructure, and logistics demonstrations, while IITP pursues a general-purpose physical AI foundation model and autonomous multi-task capabilities.

Next year’s physical AI budget totals 3.1 trillion won, more than triple this year’s 900 billion won, aimed at accelerating technology development, demonstrations, and mass-production facilities.

The SMEs Ministry will launch a 172.8 billion won program next year, rising to 440 billion won over three years to demonstrate physical AI at small manufacturing sites, covering general and hazardous processes and integrated demonstrations, with up to 4.5 billion won for main construction in integrated efforts.

The Financial Services Commission will expand long-term investment through the National Growth Fund to back technology development through to commercialization and support infrastructure like data centres and production facilities.

The government will back a broad ecosystem by supporting not only AI model developers but also equipment suppliers, facility builders, technology developers, and demand-side buyers.

A cross-ministry push will aim to commercialise physical AI by linking core technology development, field demonstrations, and private investment, with the National Growth Fund central to funding and private-sector participation.

The plan envisions a connected support system that moves physical AI from development to field demonstrations and private-sector commercialisation, coordinated through ministries and managed by the Korea Development Bank using policy finance like the National Growth Fund.

The National Growth Fund stands at 150 trillion won over five years, split 75 trillion from the Advanced Strategic Industries Fund and 75 trillion from private and other sources, with ambitions to raise annual supply to at least 40 trillion and scale beyond 200 trillion.

Cross-ministry expansion covers agriculture and ports, with the Agriculture Ministry planning about 75 billion won over five years for autonomous farming tech and the Oceans and Fisheries Ministry targeting port-automation and optimized port operations through agent AI.

The Ultra-Long-Term Technology Investment Fund will run up to 16 years to provide patient capital, supporting both equity investments and large-scale infrastructure financing for physical AI projects.

NIPA will invest 26 billion won in a physical AI demonstration and diffusion project and 40 billion won in a training centre construction to broaden applications to public logistics and private sectors, including handling irregular items at Korea Post and shared training infrastructure.

Three mega-investment targets—semiconductors, physical AI, and AI data centres—will be coordinated across ministries to align R&D, demonstrations, and financial support.