South Korea to Invest 4.52 Trillion Won in Physical AI, Chips and Data Centers

South Korea to Invest 4.52 Trillion Won in Physical AI, Chips and Data Centers

N
News Editor
2026-09-01 03:06:35
South Korea's Ministry of Trade, Industry and Energy and the Ministry of Science and ICT will invest a combined 4.5217 trillion won next year in three priority technology areas: physical AI, semiconductors and data centers. Of that total, MOTIE will handle 3.7261 trillion won and MSIT 795.6 billion won. MOTIE's spending includes 762.8 billion won for manufacturing AI transformation, covering factory data acquisition, development of AI foundation models, wider adoption of domestically produced humanoid robots, and efforts to strengthen the ecosystem for key components, materials and equipment. Another 1.5541 trillion won from MOTIE will support semiconductors, and 43 billion won is allocated to AI data center technology and talent development. On the MSIT side, 133.7 billion won will go to physical AI programs, including the creation of general-purpose physical AI foundation models and logistics demonstration projects run with Korea Post. MSIT will also provide 135 billion won for semiconductors and 222.9 billion won for data centers; the latter includes the construction of a 10-megawatt AI data center test platform. The plan was disclosed by ZDNet.

South Korea will put a combined 4.5217 trillion won into physical AI, semiconductors and data centers next year, with funding split between two ministries.

Where the money goes

The Ministry of Trade, Industry and Energy (MOTIE) gets 3.7261 trillion won of the total. The Ministry of Science and ICT (MSIT) will provide 795.6 billion won.

MOTIE has earmarked 762.8 billion won for AI transformation in manufacturing. That covers data collection at factory sites, development of AI foundation models, adoption of domestically produced humanoid robots, and ecosystem work on key components, materials and equipment. Another 1.5541 trillion won is set aside for semiconductor support, with 43 billion won going to AI data center technology and talent training.

MSIT will spend 133.7 billion won on physical AI, including the development of general-purpose physical AI foundation models and logistics pilots with Korea Post. Semiconductors are allocated 135 billion won, and data centers 222.9 billion won. The data center budget includes a 10-megawatt AI data center test platform. ZDNet reported the plan.

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