Minister Kim Jungkwan: "Semiconductors and AI Robots Are a National Survival Race... All Fiscal and Institutional Means Must Be Mobilized"

Announcing Support Measures for Megaprojects at the National Fiscal Strategy Meeting

Proposal to Build a Domestic MCE Ecosystem, Next-Generation Chips, and AI Robot Data Factories

"Megaspecial Zone Act to Be Enacted This Year... Regulatory Exemptions Tailored to Corporate Needs"

Yonhap News

On July 13, Minister of Trade, Industry and Energy Kim Jungkwan emphasized the necessity of large-scale fiscal investment and regulatory innovation in the semiconductor and artificial intelligence (AI) robotics sectors to support the government's megaproject initiatives. He argued that, amid intensifying global competition for technological supremacy, the government must provide comprehensive support not only for manufacturing facilities but also for the materials, components, and equipment (MCE) ecosystem, next-generation technologies, and the creation of early-stage markets.

At the 2026 National Fiscal Strategy Meeting held that afternoon at the Blue House State Guest House, Minister Kim presented the government's direction for supporting megaprojects in the semiconductor and AI robotics sectors. He stated, "We will boldly mobilize every available means—budget, policy, and finance—to ensure that our companies can succeed."

Minister Kim noted, "The risks associated with initial investment in next-generation semiconductor technologies are too great for private companies to bear alone. This is a domain where the government must play an active role at a pace surpassing that of competing nations." He added, "We have activated a joint public-private inspection meeting and are currently pursuing follow-up measures, including the expansion of the Gwangju military air base site."

Accordingly, the government will provide full support for infrastructure such as land, water, and electricity to expand semiconductor manufacturing facilities. In addition, it will support the development of a domestic production base for materials, components, and equipment and the creation of pilot testbeds to strengthen the overall industrial ecosystem. In the advanced packaging sector, which has recently emerged as a key technology determining semiconductor performance, the government will also work to secure next-generation technologies and build demonstration infrastructure.

Fiscal resources will be concentrated on securing next-generation semiconductor technologies. Minister Kim stated, "The next-generation semiconductor market is undergoing a complete paradigm shift, and we cannot afford to wait for the technology to fully mature. We will provide focused support for large-scale research and development (R&D) projects worth approximately 1 trillion won to rapidly secure on-device AI chips."

The government will also focus on fostering next-generation compound power semiconductors to meet increasing electricity demand, and, in line with the Defense Semiconductor Support Act scheduled to take effect in December this year, will work with relevant agencies such as the Defense Acquisition Program Administration and the Ministry of Science and ICT to establish comprehensive support for defense semiconductor development. Minister Kim remarked, "China has committed 152 trillion won, Japan 85 trillion won, and the United States 80 trillion won to support their semiconductor industries, treating the competition as a matter of national survival. The scale of government fiscal support signals that the state will never let our companies fight alone on this battlefield."

Minister Kim also called on relevant ministries to improve institutional frameworks. "Institutional support that companies can actually feel at the ground level is as important as fiscal support," he said. "We will enact the Megaspecial Zone Act within the year to grant the highest level of regulatory exemptions, and I urge relevant ministries to actively consider regulatory systems that companies want, not what the government thinks is best."

Concerning the AI robotics sector, Minister Kim described this moment as a decisive period for market preemption and called for dramatic fiscal investment. "In Shenzhen alone, China is investing 900 billion won in humanoids, whereas in Korea, nationwide investment amounts to just 100 billion won," he observed. "China holds an 86% share of the humanoid market, while Korea's share is only 1%." He added, "To narrow this gap, the government will directly produce data for robot learning."

The government plans to establish industry-specific data factories nationwide to produce robot training data, and to use this as the basis for developing a Korean-style robot foundation model. Dedicated R&D will also be established to localize key components such as actuators and sensors for robots, and the government intends to develop ten industry-specific humanoids for deployment in the industrial sector.

Government procurement will also be expanded to create early-stage markets. Minister Kim said, "Last year, the Chinese government purchased 45% of all humanoids produced, whereas there has been no government procurement in Korea. We will operate an inter-ministerial task force to identify demand for robots, actively purchase AI robots for research purposes, and increase budgets for demonstration and procurement subsidies."

Minister Kim also proposed measures to expand regional production infrastructure. For instance, a robot foundry will be constructed in Saemangeum, and, following Hyundai Motor's investment, the government will encourage follow-up investments from auto parts suppliers. In the Daegu-Gyeongbuk region, a specialized robotics cluster will be designated to support the entry of automotive and home appliance parts companies into the robotics industry.

In addition, the government will collaborate with labor groups to pursue a development project for robots designed for hazardous processes and will promptly establish safety standards for humanoids.

Minister Kim emphasized, "Our companies are investing in the future with their industries and corporate destinies at stake. Now, it is time for the government and the National Assembly to respond with bold fiscal and institutional support to ensure we do not fall behind competing nations."

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