Gyeongnam, the Heart of Manufacturing, Launches Physical AI Industrial Ecosystem ... "Aiming for Global Leadership"

Gyeongsangnam-do Province has taken steps to establish an industrial ecosystem that connects physical artificial intelligence (AI) technologies with companies and finance in local manufacturing facilities, aiming to facilitate their demonstration and commercialization.

On the 22nd, Gyeongsangnam-do attended the "Physical AI Regional Hub Development Forum" held at the Korea Development Bank headquarters. At the event, it signed a memorandum of understanding with Gyeongsangbuk-do and Jeollabuk-do Provinces, Korea Development Bank, Industrial Bank of Korea, Korea Credit Guarantee Fund, BNK Kyongnam Bank, and other policy financial institutions and regional banks, to promote the development of regional hubs for physical AI.

Kim Taehan, President of Kyongnam Bank (far left), Kang Jung-hoon, President of iM Bank, Park Chunwon, President of Jeonbuk Bank, Park Wansu, Governor of Gyeongnam Province, Lee Eogwon, Chairman of the Financial Services Commission, Lee Wontak, Governor of Jeonbuk Province, Lee Cheolwoo, Governor of Gyeongbuk Province, Park Sangjin, Chairman of the Korea Development Bank, Kang Seungjun, Chairman of the Korea Credit Guarantee Fund, and Yoo Ilgwang, Executive Director of Industrial Bank of Korea, are holding a business agreement and taking a commemorative photo. [Photo by Gyeongnam Province]

This agreement is intended to identify promising companies and projects in the region and link them to financial support.

Under the agreement, the three local governments, including Gyeongsangnam-do, will be responsible for discovering and attracting companies and projects related to physical AI, developing industrial infrastructure, and providing administrative support.

The policy financial institutions will identify the financial needs of related companies and projects and connect them to policy finance programs.

Regional banks will leverage their local business networks to find financial needs and support their linkage to policy financial institutions.

Based on this agreement, Gyeongsangnam-do plans to first identify the areas and company needs for physical AI technologies at sites of key industries such as shipbuilding, machinery, aerospace, and defense. The province will then refine these needs into promising projects.

Additionally, Gyeongsangnam-do will establish a support system to connect necessary financing in the process of technology demonstration and commercialization, and will promote the expansion of infrastructure and improvements in regulations to support on-site implementation.

The forum, hosted by the Korea Development Bank, was organized to spread physical AI—a pillar of the South Korean government’s “Korea Grand Leap Forward: Three Mega Projects” initiative—to regional manufacturing sites, and to foster a local industrial ecosystem linking business with finance.

Physical AI refers to fields where AI is integrated with actual machinery, equipment, and robots, making the role of industrial sites critical for verifying and advancing these technologies.

Park Wansu, Governor of Gyeongnam Province (third from the left), is examining a humanoid robot at the 'Physical AI Regional Hub Development Forum'. [Photo by Gyeongnam Province]

The forum was attended by more than 200 people, including Vice Prime Minister and Minister of Science and ICT Baek Kyung-hoon, Financial Services Commission Chairman Lee Eogwon, Park Sangjin, Chairman of the Korea Development Bank, and the governors of Gyeongnam, Gyeongbuk, and Jeonbuk provinces, as well as representatives from the government, policy financial institutions, regional banks, and physical AI companies.

From Gyeongsangnam-do, local companies such as LG Electronics, Samhyun, and Robot Valley also participated.

The event explored the potential applications of physical AI technologies in industry—such as humanoid and collaborative robots—and shared regional hub development strategies for Gyeongnam, Gyeongbuk, and Jeonbuk, as well as financial support measures from the Korea Development Bank, Industrial Bank of Korea, and Korea Credit Guarantee Fund.

At the event, Governor Park Wansu appealed to Vice Prime Minister Baek Kyung-hoon to support the “AI Convergence Technology Innovation Platform” project, which aims to establish a regional AI technology hub.

To Financial Services Commission Chairman Lee Eogwon, Governor Park requested that shipbuilding and nuclear power (SMRs) be included as targets for the National Growth Fund, that additional interest rate reductions be given for non-metropolitan areas, and that guidelines and a fast-track review system for refund guarantees (RG) for small and medium-sized shipbuilders be established.

Park Wansu, Governor of Gyeongnam Province, is speaking at the Physical AI Regional Hub Development Forum. [Photo by Gyeongnam Province]

Governor Park emphasized, "Gyeongnam has served as the cradle of South Korea’s manufacturing sector for the past 50 years," and added, "Gyeongnam is where physical AI technologies are most needed and can be most actively incorporated into machinery, defense, nuclear power, shipbuilding, aerospace, and automotive industries."

He went on to say, "The most crucial factors for integrating physical AI technologies are vast amounts of data and industrial sites where such data can be tested. I hope today's event serves as a valuable opportunity for finance, industry, and local governments to come together to transform South Korea’s industrial ecosystem."

He further pledged, "Gyeongsangnam-do will work even harder to ensure South Korea becomes the global leader in physical AI technologies," adding, "With the mass production and deployment of humanoid robots in industrial settings rapidly becoming a reality, South Korea must accelerate its preparations as well."

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