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 E

Yonhap News

Minister of Trade, Industry and Energy Kim Jeongkwan emphasized on July 13 that large-scale fiscal investment and regulatory reform in the semiconductor and artificial intelligence (AI) robotics sectors are necessary to support the government's megaproject initiatives. Against the backdrop of intensifying global competition for technological supremacy, he argued that the nation must provide full-fledged support not only for production facilities but also for the ecosystem of materials, parts, and equipment (MPE), next-generation technologies, and the creation of early-stage markets.

During the “2026 National Fiscal Strategy Meeting” held at the State Guest House of the Blue House on the afternoon of the same day, Minister Kim presented the direction for supporting megaprojects in the semiconductor and AI robotics fields. He stated, “We will mobilize all available means, including budget, policy, and finance, to boldly support our companies so they can win.”

Minister Kim explained, “For next-generation semiconductor technologies of the future, the risks of early-stage investment are so high that it is difficult for private enterprises to bear alone. This is an area where the government must play an active role, outpacing competing countries.” He added, “We have launched joint public-private inspection meetings and are taking follow-up actions, such as expanding the Gwangju Air Force base site.”

Accordingly, the government will provide comprehensive support for expanding infrastructure—such as sites, water, and electricity—for semiconductor production facilities. At the same time, it will also support the entire industrial ecosystem, including building a domestic production base for MPE and establishing demonstration testbeds. As advanced packaging technology has recently emerged as a key factor in semiconductor performance, efforts will also be made to secure next-generation technologies and build demonstration capabilities in this area.

The government will also concentrate fiscal resources on acquiring next-generation semiconductor technologies. Minister Kim said, “The next-generation semiconductor market is undergoing a total paradigm shift, leaving no time to wait for full technological maturity. We will focus support on a large-scale R&D project worth around 1 trillion won to quickly secure on-device AI chips.”

Additionally, the government will foster next-generation compound power semiconductors to respond to growing electricity demand, and, in line with the Defense Semiconductor Support Act—which is set to take effect in December this year—will work together with the Defense Acquisition Program Administration, the Ministry of Science and ICT, and other relevant ministries to develop comprehensive support measures for defense semiconductors throughout their lifecycle. Minister Kim noted, “China is pursuing support plans worth 152 trillion won, Japan 85 trillion won, and the United States 80 trillion won, treating the semiconductor competition as a war for national survival. The scale of our government's fiscal support signals that the nation will never let its companies fight this war alone.”

Minister Kim also called on relevant ministries to improve systems and regulations. He emphasized, “Just as important as fiscal support is creating institutional conditions that companies can tangibly feel in the field.” He continued, “We will enact a Megaspecial Zone Act this year to grant the highest-level regulatory exemptions, and I urge relevant ministries to take a forward-looking approach so that regulatory systems align with what companies want, not just what the government prescribes.”

Regarding the AI robotics sector, he stated, “Now is the decisive moment to seize the market,” and called for a dramatic increase in fiscal investment. Minister Kim pointed out, “In China, even just one city, Shenzhen, invests 900 billion won in humanoids, whereas in our entire country, the figure is only about 100 billion won. China has an 86% market share in humanoid robots, while Korea’s share is just 1%.” He then announced, “To close the gap, the government will directly produce training data for robots.”

The government plans to establish data factories for each business sector nationwide to produce robot training data, using this as the basis to develop a Korea-style robot foundation model. Dedicated R&D will be newly established for localizing key components such as actuators and sensors for robots, and humanoids specialized for the top 10 business sectors will be developed and deployed at industrial sites.

The government will also expand its procurement of AI robots to help create an initial market. Minister Kim said, “Last year, the Chinese government purchased 45% of humanoids produced, but in Korea, there have been no such government purchases.” He added, “We will operate an inter-ministerial robot demand exploration team to actively purchase research AI robots and will also increase budgets for demonstration projects and subsidies for government procurement.”

Plans to expand production infrastructure in various regions were also presented. In Saemangeum, a robot foundry will be built, and, leveraging Hyundai Motor Company’s investment as a catalyst, follow-up investments by automotive parts makers will be encouraged. In the Daegu–Gyeongbuk region, a specialized robot industrial complex will be designated to support entry by automotive and home appliance parts companies into the robotics industry.

Additionally, Minister Kim announced a project to develop robots for high-risk industrial processes in cooperation with labor organizations, and pledged to swiftly establish safety standards for humanoids.

Minister Kim stressed, “Our companies are investing in the future, putting their industries and corporate destinies on the line. Now, the government and National Assembly must respond with bold fiscal and institutional support that is at least on par with our global competitors.”

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