To truly transform into an AI nation, South Korea must ease regulations to allow new companies to emerge freely. The government needs to open initial markets for youth-led startups in sectors such as AI, robotics, defense, and healthcare.
This was a key message from experts during the 18th Good Growth, Good Jobs Global Forum (2026 GGGF) held on September 2 at The Plaza Hotel in Seoul, organized by Aju Economy. The forum focused on strategies for South Korea to lead in the global AI competition in the era of Physical AI and Agent AI.
Speakers unanimously agreed that expanding employment opportunities for the AI-native youth generation is essential for South Korea to become an AI nation. Lee Geum-ryong, chairman of Coglo.com, who successfully led the company to a public listing and sale, emphasized the need for regulatory and legislative reforms and a shift in the role of universities to facilitate this youth employment expansion.
Lee stressed the importance of transitioning from the current positive regulation system—where anything not explicitly legal is illegal—to a negative regulation system, where anything not explicitly illegal is legal. This change would allow new businesses to thrive in emerging industries and enable startups and venture companies to compete in existing sectors.
He also called for changes in university education, stating, "We need to encourage faculty with technical expertise to start businesses and allow graduate and undergraduate students to participate in real business activities." He suggested creating clusters around universities that combine research facilities, offices, and housing to help young people address both employment and housing issues.
Experts agreed that Physical AI and Agent AI could be key technologies to overcome structural challenges such as low birth rates and slow economic growth in South Korea. They warned that failing to secure independent foundation models and Physical AI technologies could lead to dependence on the U.S. and China for technology and data, jeopardizing national security and economic, social, and cultural stability.
Instead of assuming that South Korea can become the top player in Physical AI due to its manufacturing prowess, experts advised developing strategies that differentiate it from China, a more advanced manufacturing nation. Lim Jeong-hwan, CEO of Motif Technologies, emphasized that to maintain AI sovereignty and avoid dependency on specific countries, South Korea should focus on high-tech processes and industrial AI products.
Denis Hong, a professor of mechanical and aerospace engineering at UCLA, noted, "The strength of South Korean manufacturing lies in its ability to use actual industrial sites—such as those in automotive, semiconductor, battery, and shipbuilding—as testbeds for generating, learning, and validating Physical AI data." He added that while South Korea's progress is impressive, there is a need to create real interaction data from humanoid robots, including contact, force, failure, and recovery, in practical settings.
* This article has been translated by AI.
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