The government will invest 5 trillion won in humanoids and Physical AI to cultivate future growth engines

[Financial News] The government is launching a large-scale fiscal push to develop humanoids and Physical AI as future growth engines. It plans to invest 230 billion won in the humanoid ecosystem by 2030 and 280 billion won in demonstrations of Physical AI across eight major industries.
On the 27th, Minister of Planning and Budget Park Hong-keun held the second Fiscal Management Strategy Council at KDIC in Seoul and discussed the investment plan.
At the meeting, four agenda items were discussed and finalized: fiscal investment plans to foster the humanoid ecosystem, measures to promote Physical AI demonstrations in eight key sectors, plans to nurture innovative companies in new growth industries, and ways to streamline support programs for small and medium-sized enterprises across ministries.
First, the government will provide 60 billion won next year and 230 billion won by 2030 for the humanoid sector. Including private matching funds, the total investment will rise to 270 billion won. The goal is to build a system that can mass-produce humanoids tailored to 10 major industries and raise the localization rate of key components from the current 45% to 80%.
It will also expand the practical use of domestically produced humanoids. Starting with 250 units next year, the government plans to purchase a total of 1,080 by 2030 and distribute them to universities and state-run research institutes. It will also pursue joint research projects so they can be used directly in the field.
Physical AI will be tested for real-world applications in eight areas: autonomous manufacturing, small-scale manufacturing, agriculture, construction, logistics, ports, care, and defense. The government will spend 280 billion won in fiscal funds, and with private and local government investment, the total project size will reach 4 trillion won.
In agriculture, AI Agricultural Equipment Sharing Centers will be set up at 15 municipal and county farm machinery rental offices so farmers can borrow advanced equipment such as autonomous tractors. In construction, the government will designate facilities where five functions, including wearable devices, remote control, precision construction, and construction automation, can be tested in real-world settings, and it will cover the costs.
The government will also support innovative companies. Each year, it will select 300 firms in four sectors: new security, biopharma, climate tech, and K-consumer goods. It will provide up to 10 billion won per company for as long as five years. In 2027, it plans to invest 238.8 billion won. After selecting the companies, it will bundle the necessary support, from growth strategy planning and R&D to guarantees, loans, export assistance, and workforce support. Two years later, it will evaluate their performance and provide an additional three years of support to companies that meet their targets.
It has also decided to reorganize support programs for small and medium-sized enterprises. At present, such programs span 22 ministries, 671 projects, and 31 trillion won. Of these, small projects worth less than 5 billion won account for 46.1%, while projects that provide less than 50 million won to a single company make up 23.2%. Since March, the government has reviewed the programs and restructured 232 of them, deciding to cut about 4 trillion won, or 16%, from next year's budget proposal.
[email protected] Kim Chan-mi Reporter