South Korea’s Ministry of Trade, Industry and Energy has unveiled plans to invest approximately 480 billion won (around US$349 million) in artificial intelligence (AI) projects throughout 2025, with a strong emphasis on industrial applications. The funding will support the development of AI-powered factories, AI chip technology, and self-driving vehicle innovations.
This initiative aims to accelerate the adoption of AI within the manufacturing sector and stimulate new growth opportunities in the country’s industrial landscape. According to the ministry, 62.7 billion won (approximately US$45.5 million) will be allocated toward AI factory development, 21.6 billion won (around US$15.7 million) for AI chip advancements, and 120.6 billion won (approximately US$87.6 million) will support self-driving car technologies.
The South Korean government has also earmarked 68 billion won (approximately US$49.4 million) to support AI projects in the biotechnology sector, alongside 29.6 billion won (around US$21.5 million) for the development of intelligent robotics, and 13.8 billion won (approximately US$10 million) to enhance display technologies. These investments reflect a broad push to integrate AI across diverse industrial fields.
In addition to these initiatives, the ministry plans to develop foundational AI models tailored for small and medium-sized enterprises (SMEs), helping them improve quality control, precision manufacturing, and other production processes. A key focus is also on creating AI solutions that can predict and prevent impurities during pharmaceutical manufacturing, boosting efficiency in the bio industry.
Further efforts will focus on advancing key components that impact AI performance, including AI semiconductors and sensors. This comprehensive approach aims to strengthen the country’s AI infrastructure, positioning South Korea to gain a competitive advantage in the rapidly evolving global AI landscape.
Highlighting the nation’s industrial strength, the ministry stated that South Korea, as the world’s fourth-largest manufacturing hub, has significant potential to lead in industrial AI. It pledged to continue expanding investments to solidify the country’s position at the forefront of AI-driven innovation.
The ministry emphasized South Korea’s status as the world’s fourth-largest manufacturing hub, noting that industrial AI holds the greatest promise for the country to lead and secure a competitive advantage in the global AI race. It pledged to continue increasing investments in this sector to drive innovation and growth.
