The Ministry of Science and ICT will embark on a five-year research and development (R&D) project worth 1.4 trillion won ($1.4 billion) to secure leadership in next-generation physical artificial intelligence (AI) technology. The plan involves developing AI models for precise control of manufacturing processes and a platform for autonomous factory operations in Gyeongnam and Jeonbuk, respectively, to establish domestic physical AI technology.
On July 7, the Ministry and the National IT Industry Promotion Agency (NIPA) announced that they are accepting proposals for the '2026 Gyeongnam and Jeonbuk AX (AI Transformation) R&D Project' until July 28.
The project will invest a total of 1.4131 trillion won from 2026 to 2030, with 676.3 billion won allocated to Gyeongnam and 736.8 billion won to Jeonbuk.
The initiative focuses on securing core technologies for physical AI centered around manufacturing sites. Physical AI refers to technology that perceives and makes judgments about the real world, directly controlling robots and equipment. Since AI models developed in laboratories have limitations in real industrial applications, the plan includes collecting data from manufacturing sites and conducting demonstrations.
The Ministry will promote the project with two main pillars: 'ultra-precise control' of manufacturing processes and 'integrated operations' that intelligently connect and manage entire factories. Utilizing the industrial bases of Gyeongnam and Jeonbuk, specialized R&D and demonstrations will be conducted, linking them into a single physical AI platform.
In Gyeongnam, a project will be launched to develop a 'human-AI collaborative physical intelligence action model (LAM) for global demonstration.' The goal is to secure ultra-precise control technology for manufacturing process units. The project aims to develop physics-informed neural network (PINN) technology that incorporates physical laws such as thermodynamics and fluid dynamics into AI models, and to establish high-reliability fusion data and LAM based on actual manufacturing data to demonstrate a collaborative manufacturing model between humans and AI.
In Jeonbuk, a project will be initiated to create a 'collaborative intelligence physical AI-based software platform ecosystem.' This involves developing an autonomous intelligent factory platform that integrates factory and logistics systems, as well as promoting standardization of AI autonomous factory operating systems and software. A testbed and a joint research cluster involving industry, academia, and research will be established near the Jeonbuk Innovation City to provide a foundation for technology validation.
The Ministry plans to link the two projects to implement a single physical AI platform that encompasses precise control of manufacturing processes and factory operations. This aims to reduce reliance on foreign manufacturing solutions and establish an 'intelligent advanced K-AI factory package' that integrates AI models, software, and equipment and robot control technologies for global market entry.
Park Tae-wan, Director of the Information and Communication Industry Policy Bureau at the Ministry, stated, "This project marks the first step in concretizing physical AI, one of the three mega-projects promoted by the government. We aim to establish a K-physical AI-based manufacturing innovation model led by AI, from manufacturing processes to factory operations, to foster new export competitiveness."
Meanwhile, the government announced on June 29 that it would cultivate semiconductors, physical AI, and AI data centers as national strategic industries under the 'Great Leap Forward' mega-projects.
* This article has been translated by AI.
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