South Korea to invest $1.7 billion in humanoid robot development by 2030

South Korea is set to inject 2.3 trillion won (approximately $1.7 billion) by 2030 to cultivate a "K-Humanoid" ecosystem, aiming for mass production of humanoid robots across 10 key industries. This ambitious initiative, discussed at the second Fiscal Operations Strategy Council, also includes a 2.8 trillion won investment in physical artificial intelligence (AI) demonstrations across eight critical sectors.

The government's strategy for humanoid robot development focuses on establishing mass production systems by 2030 in sectors such as displays, aviation, logistics, distribution, shipbuilding, automobiles, home appliances, chemicals, hospitals, and hotels. A significant goal is to boost the localization rate of essential components from the current 45% to a target of 80%. To stimulate initial demand, the government plans to purchase 1,080 domestically produced humanoid robots by 2030, starting with a 600 billion won allocation next year.

In parallel, the government will pour 2.8 trillion won into physical AI demonstrations by 2030, with an additional 1.2 trillion won expected from private and local funding, bringing the total to 4 trillion won. Recognizing that individual companies face challenges in securing practical demonstration opportunities, the government will lead the deployment of robots in over 500 locations, including factories, farms, construction sites, ports, and military units. Examples include placing care robots in nursing facilities and piloting civilian physical AI technologies for non-combat roles in the military.

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The US is pursuing with capital, and China with scale. The next three years are a golden time that will determine the masters of technology and standards.

Beyond robotics, the government is allocating 238.8 billion won next year to nurture innovative companies in emerging fields like pharmaceutical bio and climate tech. It also plans to streamline its support for small and medium-sized enterprises (SMEs) by consolidating 671 projects across 22 ministries into 232 more efficient initiatives.

Minister of Economy and Finance Park Yun-gyu emphasized the critical nature of the next three years, stating, "The US is pursuing with capital, and China with scale. The next three years are a golden time that will determine the masters of technology and standards." He pledged close inter-agency cooperation to ensure companies can maximize their capabilities and achieve results, with the government providing active support.

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Ministries will cooperate closely to ensure companies can maximize their capabilities and achieve results, with the government providing active support.