Kim Jung-kwan, the Minister of Trade, Industry and Energy, expressed alarm on October 6 over the intensifying competition in artificial intelligence (AI) between the United States and China, stating, "I feel a sense of thrill about it." He added that the government would support securing demand in the fields of robotics and drones, as well as technology development and research and development (R&D) for small and medium-sized enterprises.
During a National Assembly audit of the Ministry of Trade, Industry and Energy, Kim made these remarks in response to a question from Im Moon-young, a lawmaker from the Democratic Party, regarding the US-China AI rivalry. "Looking at recent developments, it is truly overwhelming," he said.
He elaborated, "We are contemplating what our unique 'edge' is that neither China nor the US can replicate. This is also why I am paying more attention to the transition to manufacturing AI."
Im urged the government to expand support for the development and demonstration of domestic AI data centers based on neural processing units (NPU) to promote the spread of physical AI. He pointed out that while domestic NPUs have entered mass production, there is insufficient demonstration infrastructure to validate them in actual manufacturing settings.
In response, Kim acknowledged, "I agree that the development and demonstration of on-premises AI data centers is one of the key elements," and he committed to working with the National Assembly to increase funding for this initiative, which is currently not included in the budget.
He also noted, "I recognize that this is essentially included in the national agenda, and I fully agree with the direction of supporting AI companies through the AIDC project and moving towards physical AI."
Democratic Party lawmaker Lee An-joo pointed out that emphasizing only physical AI without domestic production of key components for drones and robots has its limitations. She highlighted the importance of securing affordable hydrogen and electricity for the transition to hydrogen-reduced steelmaking, especially as the proportion of imported Chinese steel is rising.
Lee further stated, "Given that industrial electricity rates in Korea are about 1.5 times higher than in China, it will be difficult for domestic manufacturing to maintain price competitiveness with China," urging the Ministry to protect domestic production bases and supply chains through production subsidies and tax credits, while actively reflecting industrial competitiveness in energy policy.
In relation to this, Kim expressed, "I fully agree with the concerns and points raised," adding, "Issues regarding industrial electricity rates, electricity costs, drones, and small and medium-sized enterprises are constantly on my mind, but honestly, I have not found clear answers yet."
He concluded, "However, I am clear about the direction we need to take and firmly believe that we must not miss the opportunity."
* This article has been translated by AI.
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