South Korea Invests 5 Trillion Won to Promote Physical AI in SMEs
The South Korean government announced plans to invest at least 5 trillion won by 2030 to introduce physical AI and the '3X Strategy' to small and medium-sized manufacturing enterprises. This initiative aims to increase the AI adoption rate among SMEs from 1% to 10% and expand the number of AI-utilizing companies from 600 to 6,000. This policy addresses the digital and technological transformation of traditional manufacturing sectors by bridging the gap between digital AI and real-world industrial environments. By modernizing SMEs, South Korea hopes to boost national competitiveness, overcome labor shortages, and stimulate advanced automation across high-risk manufacturing processes. The '3X Strategy' combines digitalization, artificial intelligence, and robotics, providing tailored support based on a company's data maturity levels ranging from basic smart factories to autonomous AI factories. Additionally, the government will upgrade the existing Artificial Intelligence Manufacturing Platform (KAMP) to 'Manufacturing AI24' and roll out specialized talent training programs.
## BACKGROUND
Physical artificial intelligence, or physical AI, refers to AI systems that combine software algorithms with hardware such as sensors, actuators, and robots to perceive, reason, and act within the physical world. Digital twin technology is another key concept, which creates a virtual replica of physical assets to optimize design, manufacturing, and operational processes through closed-loop data feedback.