'Special Act on Physical AI' Proposed Ahead of Jensen Huang's Visit to Korea

Hwang Jeonga, Secretary of the Industry Subcommittee, Proposes Bill on Behalf of Democratic Party's Committee for Building an AI Powerhouse
Establishment of Pilot Areas Where Regulatory Exemptions Apply
Physical AI Demonstration and Industrialization Testbeds
Introduction of One-Stop Regulatory Sandbox Approval Timeout System
Special Provisions for Personal Data Utilization Open Path for Advanced Physical AI Data Training
New Physical Artificial Intelligence Development Promotion Committee Chaired by the Prime Minister to Break Down Inter-Ministerial Barriers

Coinciding with the visit of Jensen Huang, CEO of Nvidia, who expressed his intention to invest in the Korean robotics industry, a special law has been proposed at the pan-government level to support the physical AI industry.

Junga Hwang, a member of the Democratic Party of Korea, delivered a congratulatory speech at the 2026 Asia Future Business Forum held under the theme "Space Nomics, South Korea's Growth Engine Found in Space" on May 13 at the Lotte Hotel in Sogong-dong, Seoul. 2026.5.13 Photo by Yongjun Cho

On June 5, Assemblywoman Hwang Jeonga, secretary of the Industry Subcommittee of the Democratic Party of Korea's Committee for Building an AI Powerhouse, announced that she had sponsored the "Special Act on the Promotion and Support of Physical AI Development," which aims to foster and support the physical AI ecosystem.

The special act is known to comprehensively address industry demands, including full-scale support for the leap of physical AI, regulatory exemptions, and the establishment of demonstration areas. The Industry Subcommittee of the Democratic Party of Korea's Committee for Building an AI Powerhouse held a forum in April to gather industry opinions on the enactment of a special law for physical AI.

Major domestic leaders in the physical AI industry, such as SK Group, Hyundai Motor, and Kakao Mobility, participated in the forum, voicing criticism of regulatory barriers that impede pilot projects and commercialization.

The current legal framework is divided between the general provisions of the Basic Act on Artificial Intelligence and individual industry laws for fields such as robotics and autonomous driving. As a result, it has been pointed out that the unique characteristics of physical AI, in which hardware and software operate simultaneously, are not sufficiently reflected.

To address these limitations, the bill introduces a system for designating physical AI pilot areas. In these areas, a fast-track regulatory confirmation system and special exemptions from certain laws will apply. The plan is to create specialized testbeds for physical AI, where companies can validate robotics and autonomous driving technologies in real-world physical spaces.

The regulatory sandbox process will also be revised. Application channels for physical AI regulatory sandboxes, which are currently scattered across multiple ministries, will be unified under the Ministry of Science and ICT. A "one-stop regulatory sandbox approval timeout system" will be introduced, whereby regulatory exemptions are deemed approved if no rejection notice is issued within 60 days. The validity period for regulatory exemptions will also be extended from two years to five years, enabling companies to pursue mid- to long-term demonstrations and commercialization.

The bill also includes special provisions for data utilization. For physical AI, high-quality data collected from real-world environments is key to technological advancement. The bill provides for special exemptions that relax personal information protection regulations, allowing companies to use raw data necessary for robot operation and AI training. However, it also establishes safeguards by strengthening personal data management systems and requiring immediate destruction of data five years after collection.

Provisions for building the industrial foundation are also included. These encompass incentives to attract global key talent, basic infrastructure for integrating AI into manufacturing, and grounds for constructing and providing training data free of charge. To ensure safety, a performance certification system and mandatory insurance will also be introduced.

A "Physical Artificial Intelligence Development Promotion Committee," chaired by the Prime Minister, will be newly established as a pan-government control tower. Since physical AI involves multiple ministries—such as the Ministry of Science and ICT, Ministry of Trade, Industry and Energy, Ministry of Land, Infrastructure and Transport, and the Personal Information Protection Commission—the aim is to lower inter-ministerial barriers and enhance policy execution.

This bill comes at a time when global interest in the AI industry is rapidly shifting toward physical AI. At the "Korea Partner Night" event held in Taipei, Taiwan on June 1, Nvidia CEO Jensen Huang mentioned the possibility of considering investments in Korea's robotics sector.

Assemblywoman Hwang stated, "This special act is a physical AI leapfrogging law designed based on the vivid voices and urgent recommendations of Korea's leading companies. We will remove regulations and obstacles so that our companies can freely sail on the vast ocean of the global market, and make Korea a global powerhouse in physical AI." She also expressed a strong commitment to showcasing Korea's capabilities by hosting Nvidia's developer event, GTC, in Korea.

This content was produced with the assistance of AI translation services.