South Korea to Spend 52.75 Billion Won to Bring AI to Chip, Auto and Shipbuilding Plants

by AJP Posted : April 29, 2026, 11:12Updated : April 29, 2026, 11:12
South Korea’s Ministry of Trade, Industry and Energy. [Photo=Ajunews DB]
South Korea’s Ministry of Trade, Industry and Energy. [Photo=Ajunews DB]
The South Korean government is moving to apply artificial intelligence to production sites in key industries such as semiconductors, automobiles and shipbuilding to strengthen manufacturing competitiveness. It plans to invest 52.75 billion won in state funds next year to accelerate a broad AI shift in manufacturing.

The Ministry of Trade, Industry and Energy said Tuesday it will 추진 an “AI Factory Leading Project” to support the development and rollout of industry-specific manufacturing AI technologies, as well as the adoption of AI robots, facilities and equipment.

The ministry said the program was designed to lift manufacturing competitiveness as growth slows amid a shrinking working-age population and a decline in potential growth. It also cited unstable global supply chains, geopolitical risks and intensifying competition for technological leadership, which it said are increasing the importance of the ability to implement advanced technologies on factory floors and produce them at scale.

Through the project, the ministry said it will push a full-scale “AI transformation” of manufacturing sites, dubbed M.AX, by developing and distributing sector-tailored manufacturing AI and introducing AI robots, facilities and equipment. It will select 32 tasks focused on industries and processes with high urgency and broad impact, and will diversify support types to better match industry demand, including models aimed at cooperation between large firms and small and midsize partners and models that delegate data and AI models.

The program will operate under five types, including a “large-small cooperation” model in which major companies share AI models with small and midsize partner firms in their supply chains; a “data and AI model delegation” model that opens and delegates data and AI models to the government; and a “full-stack PoC” to build a full-stack AI factory run solely by AI.

The ministry said applications for new tasks will be accepted from Feb. 6 to March 9. Details will be available on the 범부처통합연구지원시스템 website.

It also said it will hold a project briefing at 2 p.m. on May 7 at the JW Marriott Dongdaemun Square, targeting manufacturing companies, AI firms and research institutions. The ministry said it will explain the new call for projects, the intent behind the request for proposals and the selection and evaluation plan, and will take questions and gather feedback to improve researchers’ understanding and encourage participation.

“An era in which manufacturing and industrial competitiveness is national competitiveness,” a ministry official said, adding that the ministry will 추진 the AI Factory Leading Project without setbacks to become a top M.AX nation by 2030.



* This article has been translated by AI.