Chinese Humanoid Robots Enter South Korean Market Amid K-Physical AI Debate

Chinese humanoid companies are increasingly entering the South Korean market, putting the K-Physical AI ecosystem to the test. With competitive pricing and rapid production capabilities, Chinese robots are accelerating their domestic market penetration. Amid ongoing debates over the introduction of physical AI in South Korea, there are concerns about ceding control to what is termed 'Red Tech.'

According to industry sources, AiMOGA Robotics, a subsidiary of China's Chery Group, is preparing to enter the South Korean market. The company is reportedly seeking local partners to sell and support its products, likely opting for a dealership model rather than establishing a local corporation. Sales could begin as early as this year.

AiMOGA is a physical AI company nurtured by Chery Group, a major Chinese automaker. It is rapidly expanding its business across various sectors, including humanoid and quadrupedal robots, as well as service robots for transportation and healthcare. The company has already extended its product and service reach to over 60 countries, with total robot supply exceeding 3,000 units. This contrasts with South Korea, which has yet to achieve mass production of fully bipedal humanoids.

Hyundai Motor Group, considered a leader in the domestic humanoid sector, only opened its Robotics Metaplant Application Center (RMAC) on September 22 to train Boston Dynamics' Atlas robot. Other domestically developed semi-humanoids, such as Robotiq's AI Worker and Rainbow Robotics' RB-Y1, utilize wheels for movement. Airobot's Alice5 is bipedal but is still in the industrial testing phase.

The slow commercialization of humanoids in South Korea is attributed to technological and cost issues, compounded by social acceptance debates. Notably, there are clear disagreements between labor and management regarding the deployment of robots in production settings. The Hyundai union stated in January, "We cannot introduce even one Atlas without labor-management agreement," expressing strong opposition. This reflects a tension between the expectation that humanoids can alleviate labor shortages and enhance productivity, and concerns that they may lead to job and wage reductions.

As discussions about the introduction of humanoids intensify in South Korea, Chinese companies are swiftly establishing their sales networks. For instance, Unitree has formed official partnerships with local firms like ROAS, while Aijibot entered into an exclusive partnership with Ielo Robotics in May to begin sales. With AiMOGA also seeking partners, the pace of Chinese market penetration in the nascent humanoid sector is accelerating.

The infiltration of Chinese robots is on the rise. According to a survey by the Korea Robot Industry Promotion Agency, imports of Chinese robots are projected to increase from 112.5 billion won in 2023 to 137.7 billion won in 2024, marking a 22.4% growth. This growth rate is approximately 4.4 times higher than the overall robot import growth rate of 5.1%. The share of Chinese robots in total imports has also risen by 3 percentage points to 20.0% within a year.

Given the anticipated rapid growth of the domestic market, the share of Chinese robots is likely to continue expanding. The South Korean humanoid market, valued at $112.6 million (approximately 152.9 billion won) last year, is projected to grow to $583.5 million (approximately 792.2 billion won) by 2030, with an average annual growth rate of 39%. As the market expands, Chinese companies that have already secured sales networks are poised to capture a significant portion of the growing market share.

An industry insider noted, "Just looking at the aggressive participation of Chinese companies in robot-related exhibitions in South Korea is striking. While Korean conglomerates are just beginning to collect data, Chinese firms have already established their systems."