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Korean Industrial Insight No. 26 of AI, Semiconductors, Batteries, Electric vehicles, Robot, and Bio |
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2026-07-01 |
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Ⅰ. AI INDUSTRY TRENDS
1. South Korean Government Unveils K-Physical AI Full-Stack Strategy… “Aiming to Expand Proprietary Technology”
- Launch of the “second phase of the physical AI alliance” … “linking 40 projects from the first phase”
The South Korean government has presented a strategy to expand the country’s domestic physical artificial intelligence (AI) capabilities across all industries.
Lee Joo-sik, Director of the Information and Communications Technology (ICT) Industry Policy Division at the Ministry of Science and ICT (MSIT), announced at the event titled “Directions for the Reorganization and Expansion of the 2nd Phase of the 2026 Physical AI Alliance” that the existing alliance would be restructured into a platform for identifying national Physical AI projects. Approximately 200 representatives from industry, academia, and research institutes in the Physical AI field, as well as related associations and organizations, attended the event.
Director Lee viewed the next three years as a “golden opportunity” to secure global leadership in Physical AI. He predicted that the scope of Physical AI applications would expand beyond industrial settings such as manufacturing and logistics to include daily life areas such as caregiving and household chores.
“The second-phase Alliance has set securing K-Physical AI full-stack capabilities and building a total Physical AI solution platform as its core objectives,” Director Lee emphasized, adding, “We will develop proprietary technologies that encompass domestically produced AI semiconductors, AI models, data, world models, computing platforms, and robot hardware (HW).”
Director Lee also announced that the Alliance’s organizational structure has been reorganized. The existing 10 subcommittees will be consolidated into three core subcommittees: the K-Physical AI Full Stack Subcommittee, the Vertical Industry Bridge Subcommittee, and the Infrastructure Governance Subcommittee.
The K-Physical AI Full-Stack Subcommittee is responsible for technological sovereignty and localization. Action groups covering AI models, data, world models, computing platforms, and robots will be established under this subcommittee.
The Vertical Industry Bridge Subcommittee will be responsible for expanding the adoption of Physical AI across all industries. Its main focus areas include defense and aerospace, marine and shipbuilding, manufacturing, healthcare and wellness, autonomous driving and logistics, and everyday services.
The Infrastructure Governance Subcommittee is responsible for standards, regulations, reliability, safety, communications, talent, and global cooperation. Its role, as outlined in the plan, is to establish the regulatory, security, and communications infrastructure necessary for the application of Physical AI in industrial settings.
The second phase of the Alliance will be operated under a structure in which the Ministry of Science and ICT and the Korea AI•Software Industry Association serve as co-chairs. Relevant government ministries, including the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Health and Welfare, the Ministry of National Defense, the Ministry of Oceans and Fisheries, the Ministry of Land, Infrastructure and Transport, and the Ministry of the Interior and Safety, will also collaborate with the Alliance.
Telecommunications Technology Association, Korea Physical Industry AI Association, Korea Association of AI and Robotics Industry, Korea Fabless Industry Association, Korea Data Center Council, Korea IT Service Industry Association, Korea Information Security Industry Association, Korea Association for AI & ICT Promotion, 6G Forum, AI Network Alliance will also participate in the Alliance.
Director Lee announced that a total solution platform for physical AI will also be established. This platform is structured to support technology development, computing infrastructure, high-reliability networks and security, and system integration all at once.
Director Lee emphasized, “This platform focuses on the integrated design of fragmented AI models, robot hardware, and sensors with on-site legacy systems,” adding, “Enhancing the design capabilities for low-power, high-speed on-device AI semiconductors and improving inference processing capabilities are also key tasks.”
Policy support will also be expanded. This will be pursued through three main channels, including linking with government projects, linking with policy-based financing, and expanding global cooperation. Outstanding projects will be connected to new R&D and demonstration projects, while promising projects will be linked to the National Growth Fund, the AI Innovation Fund, and the Korea IT Fund.
Director Lee also announced plans to strengthen international cooperation in the field of physical AI. The government will support local networking and information sharing through overseas hub centers, as well as assist with participation in global conferences, joint research, and overseas exhibitions, and help secure investment and open new sales channels.
Linking the 40 tasks derived from phase 1… Presenting three core projects
The government presented a project roadmap that consolidates and refines the 40 tasks identified during Phase 1 of the Alliance. Phase 2 will focus on building a Korean-style Physical AI full-stack platform, establishing a training center to secure behavioral data, and enacting the tentatively named Physical AI Promotion Act.
The Korean-style Physical AI full-stack platform aims to create a national, shared, integrated hardware and software ecosystem to counter the monopoly of NVIDIA’s “CUDA” ecosystem. It involves providing a standardized ecosystem and development tools that enable large models and general-purpose foundation models to run smoothly on domestically produced neural processing units (NPUs).
The training centers will support the collection, training, and validation of behavioral data required for the development of Physical AI models based on corporate demand. Specialized hubs will be established across five regions nationwide to mass-produce real-world data and synthetic behavioral data by utilizing teleoperation in physical spaces and digital twin simulators in virtual spaces.
The Physical AI Promotion Act serves as the institutional foundation for promoting technology development, demonstration, and commercialization, as well as systematically fostering the industrial ecosystem. It is expected to include provisions for identifying and supporting leading projects, designating demonstration zones, granting regulatory exemptions, establishing data infrastructure, and ensuring safety and reliability.
The government will carry out priority projects from June through December of this year. It also plans to sequentially proceed with the preparation of next year’s budget proposal, the planning of new projects, the identification of alliance-led projects, technology exchange meetings, seminars with overseas experts, and performance review sessions.
Director Lee emphasized, “We will break free from dependence on foreign products and strengthen our capabilities in physical AI technology,” adding, “We will expand the scope of application beyond manufacturing to include logistics, agriculture, healthcare, defense, and public administration.”
2. OpenAI to Introduce Ads on Korean ChatGPT… Targeting Free and Low-Cost Plans
OpenAI announced on June 19 that it has launched a pilot program in South Korea to display ads on its artificial intelligence (AI) chatbot, ChatGPT. OpenAI is expanding its advertising revenue model to multiple countries to fund massive infrastructure investments.
According to OpenAI, the pilot program targets adult users of the free or Go plan for ChatGPT. The Go plan costs $8 (approximately 12,000 won) per month. Ads will not appear on the more expensive Plus and Pro plans, the Business and Enterprise plans for companies, or the Edu plan for educational use. KyoungHoon Kim, General Manager of OpenAI Korea, explained, “Ads can help expand accessibility so that more people can use ChatGPT’s useful AI features without the financial burden.”
Ads appear at the bottom of ChatGPT’s responses. For example, if a user asks ChatGPT for a Mexican recipe, an ad for hot sauce might appear at the bottom of the conversation. Although ads are displayed based on the chat content, they are clearly distinguished from the response so that users can identify them as “sponsored content.” This advertising pilot program was previously implemented in the United States, the United Kingdom, Canada, Australia, and New Zealand. OpenAI stated, “In the initial pilot markets, we observed significant interest from companies seeking to engage with customers in a conversational environment based on user intent.”
OpenAI’s introduction of an advertising revenue model is being viewed as a “significant change” (Reuters). Sam Altman, CEO of OpenAI, said in a May 2024 lecture at Harvard University that “the advertising business model is a last resort.” However, with competition in the AI sector intensifying recently against companies like Google and Anthropic, and mounting pressure to generate revenue for an initial public offering (IPO), the move is interpreted as OpenAI ultimately embracing the traditional revenue model of the IT (information and communications) industry.
Nevertheless, the “monetization dilemma” remains a challenge to be addressed, as the advertising model could lead to a loss of user trust and user churn. On this day, OpenAI outlined its principles regarding the introduction of ads, including: ▶ensuring the independence of responses; ▶protecting users’ conversations and personal information; and ▶guaranteeing users’ choice and control over ads. Specifically, the company explained that advertisers cannot influence the content of ChatGPT’s responses and that only performance metrics, such as ad impressions, will be shared. ChatGPT users can manage their ad data and other settings.
OpenAI plans to closely review user feedback during the pilot phase. This is to gradually expand the advertising service to multiple countries and improve the user experience. OpenAI also explained that it has put safeguards in place, such as ensuring that ads are not displayed in conversations involving accounts confirmed to be, or likely to be, minors, or in conversations related to sensitive or potentially regulated topics such as health, politics, and finance.
3. 'MLCC' Shortage Amid AI-Driven Surge in Demand… MLCC Installation Volume Soars by '632%'
- ‘Supply Cliff’ looms in second half… 20 weeks from order to delivery
- Samsung Electro-Mechanics rides the ‘Supercycle,’ setting its sights on 1.6 trillion won in operating profit
With analyses suggesting that the usage of ultra-small multilayer ceramic capacitors (MLCCs), which previously averaged 1,440 per printed circuit board (PCB) will increase to 10,544, forecasts are emerging that MLCCs will become the “second memory semiconductor.”
As the era of artificial intelligence (AI) gains momentum, demand for memory semiconductors is surging, leading to a situation where supply cannot keep up with demand. For MLCCs, the lead time from order to delivery, which used to be 8 weeks, has now increased to 20 weeks.
Furthermore, demand for high-performance MLCCs is exploding as cloud service providers (CSPs), including Big Tech companies, have begun developing their own application-specific integrated circuits (ASICs) for neural networks. However, the number of companies capable of producing high-performance MLCCs is limited to Samsung Electro-Mechanics, Japan’s Murata, TDK, and Taiyo Yuden. Although they are working to expand production capacity, the earliest is expected to be achieved is 2027.
Amid forecasts that the supply shortage will persist, a race to secure long-term supply agreements (LTA) is underway, led by CSP. This is why MLCCs are often compared to memory semiconductors.
MLCC loading exceeds 10,000 per PCB… Shortage triggered by ‘AI accelerators’
According to market research firm TrendForce on the 21st, demand for premium MLCCs is surging as global CSPs compete to build AI systems, leading to increased adoption of “ASIC accelerators.” The firm explains that frequent design changes during the final verification stage of next-generation platforms have significantly increased the demand for high-end MLCCs per board.
ASIC accelerators are specialized chips custom-designed to handle specific tasks, such as AI model training or inference. Compared to general-purpose chips like CPUs and GPUs, which handle a variety of tasks, they are more expensive to develop but offer the advantage of being faster and more energy-efficient for their intended purposes.
MLCC is an electronic component as small as a grain of sand. It acts like a dam, temporarily storing electricity and then immediately supplying power to semiconductors when needed, while regulating the flow of current.
AMD’s “MI450” platform replaced existing capacitors with MLCCs during the material validation process. As a result, the usage of “47μF 2.5V X6S 0402 MLCCs” skyrocketed by a staggering 632%, from 1,440 units to 10,544 units.
NVIDIA’s next-generation “Vera Rubin” platform also saw demand for “100μF 4V X6S 0805 MLCCs” rise from 320 to 500 per board. MLCC demand is expected to reach an all-time high in the second half of this year when major platforms such as Google’s “TPU V8t•i,” AWS’s “Trainium 4,” and Meta’s “MTIA 400•450” begin mass production.
According to industry sources, the supply chain is already showing signs of reaching its limits. The back-to-back (B/B) ratio—the ratio of orders to shipments—for major suppliers in South Korea and Japan has been rising steadily since last April. The lead time, which is the period from order placement to delivery, for certain high-capacity products has increased from 8 weeks to as long as 20 weeks.
Supply chain stalled by yield barriers… “Structural shortage” looms in Q4
Despite explosive demand, suppliers’ efforts to expand production capacity are proceeding slowly. Companies including Samsung Electro-Mechanics, Murata, Taiyo Yuden, and Kyocera have begun scaling up mass production of high-specification MLCCs. However, supply expansion appears limited due to complex manufacturing processes and low industry-average yield rates.
Murata, the industry leader, is not expected to bring its new Izumo plant to full operation until 2027. The prevailing view is that this will be insufficient to meet the surging demand in the short term or provide meaningful relief to the supply shortage.
TrendForce predicts that potential supply risks will turn into actual market shortages between the end of the third quarter and the beginning of the fourth quarter of this year. As component shortages intensify, leading CSPs that have already signed Long-Term Agreements (LTAs) are likely to receive priority allocations and corner the market.
Meanwhile, system vendors and original design manufacturers (ODMs) that have not secured supply agreements are in a state of emergency. They are reportedly facing the risk of having to pay price premiums in the spot market and suffering severe shipment delays. TrendForce pointed out that, as a result, companies must urgently secure strategic safety stock within the third quarter to prepare for supply disruptions in the fourth quarter.
Samsung Electro-Mechanics aims for the ‘Supercycle’… Green light for annual operating profit of 1.6 trillion won
Samsung Electro-Mechanics, a South Korean manufacturer of electronic components such as MLCCs, is expected to benefit from the “AI supercycle.”
According to market research firm FnGuide, the consensus estimate (average of securities firms’ forecasts) for Samsung Electro-Mechanics’ annual revenue this year is expected to be 13.4088 trillion won. Operating profit is projected to surge 74.0% year-over-year to 1.5895 trillion won. The operating profit margin is expected to reach 11.8%.
It is assessed that supply capacity for general-purpose products is shrinking as companies prioritize allocating production capacity to MLCCs for AI servers.
Samsung Electro-Mechanics continues to secure orders for next-generation components such as silicon capacitors (Si-CAP) and high-specification semiconductor substrates (FC-BGA). It appears that preemptive price hikes for FC-BGA were implemented as major North American tech companies shifted their non-China procurement volumes to Samsung Electro-Mechanics to avoid geopolitical risks.
It is reported that customers are prioritizing securing stable supply volumes over negotiating unit prices. The market appears to be restructuring around Long-Term Agreements (LTAs), which allow suppliers to secure stable sales forecasts and enable customers to defend their pricing.
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. Memory Market Projected to Grow Fourfold This Year… Driven by AI Demand
- According to Counterpoint… share of server products expected to rise sharply
The global memory semiconductor market is experiencing explosive growth this year, driven by demand for artificial intelligence (AI) infrastructure. The share of server memory in the total memory market is also expected to exceed 50%.
According to market research firm Counterpoint Research on the 20th, the global memory market is projected to reach 1,500 trillion won this year, a fourfold increase from last year’s 360 trillion won.
The primary driver is the expanding demand for server memory to support AI infrastructure investments. The share of server memory in the total memory market is projected to rise from 37% last year to 56% this year.
Counterpoint Research stated, “The deepening supply-demand imbalance caused by rising demand for server memory is driving up memory prices,” adding, “This upward trend is expected to continue through the first half of 2027.”
As memory prices surge, the price per gigabit (Gb) of standard DRAM is now exceeding that of High Bandwidth Memory (HBM). HBM is typically less sensitive to market conditions because supply volumes and prices are negotiated with customers on an annual basis. However, HBM prices are also highly likely to rise further next year.
Counterpoint Research assessed, “Since HBM, which involves a more complex manufacturing process and higher production costs, is also likely to see further price increases in the future, there is ample room for further growth in the memory market.”
2. LOTTE Chemical Group to Invest KRW 130 Billion to Build a Key Semiconductor Materials Plant in Pyeongtaek
The LOTTE Chemical Group, led by LOTTE Chemical, is investing 130 billion won to expand its production base for key semiconductor materials to Pyeongtaek. This move is aimed at expanding production capacity in response to the surge in semiconductor demand driven by artificial intelligence (AI).
Hantok Chemicals, an affiliate of the LOTTE Chemical Group, announced on the 19th that it held a groundbreaking ceremony for a production plant for semiconductor and display developer (TMAH) in the Posung District of Pyeongtaek, Gyeonggi Province. TMAH is a key material in the “development process” used to create fine circuit patterns during semiconductor and display manufacturing. Currently, only South Korea, Japan, and the United States have the production capacity for high-purity semiconductor developer. Hantok Chemicals is the world’s leading manufacturer in this field. The LOTTE Chemical Group has established a vertically integrated system covering everything from key raw materials for TMAH to the final product.
Hantok Chemicals plans to invest a total of 130 billion won to build TMAH production facilities on a site of approximately 32,216 square meters within the Poseung District. In line with the expansion schedules of domestic semiconductor manufacturers, Hantok Chemicals also plans to gradually expand its production lines. With this, Hantok Chemicals will secure a production base in the Seoul metropolitan area, complementing its existing facility in Ulsan. The strategy is to respond flexibly to supply and demand fluctuations in the semiconductor market and improve logistics efficiency to accelerate supply response times through this dual production base.
The groundbreaking ceremony was attended by Noh Jun-hyung, CEO & President of LOTTE Corp.; Lee Young-jun, Head of the LOTTE Chemical Group; Jung Seung-won, CEO & President of LOTTE Fine Chemical; Ahn Hyo-taek, CEO & President of Hantok Chemicals. In addition, approximately 70 representatives from Japanese partner companies and local government officials were present, including Hiroshi Yokota, Representative Director & Chairman of Tokuyama Corporation; Kim Neung-sik, Commissioner of the Gyeonggi Free Economic Zone Authority (GGFEZ); and Lee Seong-ho, Vice Mayor of Pyeongtaek City.
In his congratulatory remarks, Chief Executive Lee Young-jun stated, “The groundbreaking of the Pyeongtaek plant is a strategic investment to proactively respond to future demand and a crucial steppingstone to strengthening LOTTE Group’s advanced materials business.” He added, “We expect that diversifying our production bases from Ulsan to Pyeongtaek will secure a stable supply system and enhance the stability of the supply chain for the domestic semiconductor cluster.”
3. SK Group Joins K-New Deal Academy… Expanding Training for Semiconductor and AI Talent
- Four companies, including SK Hynix and SK Telecom, participate… Strengthening practical training in semiconductors and AI
- AX talent development linked to hiring… Expanding educational opportunities outside the capital region
SK Group is participating in the “K-New Deal Academy,” a government-led talent development initiative, to nurture young talent in the semiconductor and AI fields. The strategy is to secure the talent needed for the AI Transformation (AX) era through hands-on training that leverages the expertise of each affiliate, while also strengthening ties to recruitment.
SK Group announced on the 18th that four of its affiliates—SK Hynix, SK Telecom, SK AX, and SK Planet—will participate in the K-New Deal Academy, a program promoted by the Ministry of Trade, Industry and Energy and the Ministry of Employment and Labor, to operate a total of five training courses.
The program consists of hands-on courses in areas of high interest among young people, including AI semiconductors, AI agent-based security and networking, AI content service planning, and smart port and maritime logistics data. Training will be conducted not only in the Seoul metropolitan area but also in non-metropolitan regions such as Daejeon, Daegu, Busan, Gwangju, and Ulsan, in an effort to bridge regional educational disparities.
SK Hynix plans to train 300 people by the end of the year through “Youth Hy-Po,” a specialized training program for AI semiconductor roles. Launched in 2022, the program has produced 2,300 graduates to date, with an average competition ratio of 10 to 1 per cohort. Trainees receive a total of 350 hours of intensive training over approximately two and a half months.
SK Telecom operates “THE ALEPH,” a practical training course in AI agent-based security and networking. The company will select a total of 173 participants from the Daejeon, Daegu, and Busan regions and provide them with 500 hours of training.
SK AX provides training in both foundational AI skills and practical competencies through the “SKALA (SK AI Leader Academy)” program. It is recruiting a total of 260 participants in Gwangju and Ulsan, and plans to offer top graduates an exemption from the document screening stage when applying for positions at SK Group affiliates with which it has signed agreements.
SK Planet is running the “Smart Port and Maritime Logistics Data Practical Course” and the “AI-Based Regional Tourism Content and Services Course,” primarily in the Busan area, and will select a total of 50 participants, 25 for each course.
Ⅲ. BATTERY AND ELECTRIC VEHICLE INDUSTRY TREND
1. LG Energy Solution Surpasses 100,000 Patent Applications… “First Among Global Battery Companies”
- Accelerating efforts to secure future technologies… Striving to create a fair industrial ecosystem
LG Energy Solution announced on the 21st that, according to internal figures from last month, its global patents have surpassed 59,000 in terms of registered patents and 100,000 in terms of patent applications.
The company also explained that this marks the first time a battery company worldwide has surpassed 100,000 global patent applications.
The company added that this achievement is the result of its ongoing expansion of research and development (R&D) investment to strengthen its technological leadership, viewing patents as a key strategic asset that drives future growth and determines business competitiveness.
After exceeding 1 trillion won in annual R&D spending for the first time in 2023, LG Energy Solution invested 1.3277 trillion won in R&D last year, which is the largest amount in its history.
The patent portfolio accumulated through these efforts has become the foundation for the company’s differentiated technological competitiveness in the global battery industry.
The company has built a patent portfolio not only in differentiated process technologies, such as safety-reinforced separators (SRS), double-layer coating (DLD) for anodes, and carbon nanotube (CNT) pre-dispersion technology, but also across a wide range of core material technologies, including high-voltage electrolytes and silicon anode materials.
Recently, the company has also secured a series of victories in overseas patent litigation based on these technologies.
Based on its “Winning Tech” strategy, LG Energy Solution is also accelerating efforts to secure new technologies that will lead future markets.
The company has also proactively established a patent foundation for prismatic LMR (lithium-manganese-rich) batteries, which will serve as a core platform technology in the future commercialization of LMR batteries.
Furthermore, LG Energy Solution is taking a firm stance against patent infringement and is creating a virtuous cycle of innovation by reinvesting the fair compensation secured through patent litigation into the development of future technologies.
As a leading company, it is taking the lead in fostering a fair industrial ecosystem by expanding patent openness and technology exchange based on mutual respect for technological value and reasonable licensing terms.
Lee Han Sun, Senior Vice President and Head of the IP Group at LG Energy Solution, stated, “100,000 patents is not just a number; they are the fruits of relentless research, development, and challenges,” adding, “We will continue to accelerate future growth based on core technologies and high-quality patents.”
2. EV Recovery and ESS Growth Accelerate… K-Batteries Set Course for Second-Quarter Earnings Rebound
- LG Energy Solution expected to return to profit… Samsung SDI and SK On also showing improved performance
- Strong EV sales in Europe and South Korea… K-batteries benefit from U.S. supply chain restructuring
The domestic battery industry is poised for second-quarter earnings rebound, driven by a recovery in electric vehicle (EV) sales and growth in the energy storage system (ESS) market. With domestic and international EV sales rising rapidly and the global ESS market projected to grow by 50% this year, expectations are growing for improved profitability among the three major battery companies.
LG Energy Solution expected to return to profit… Samsung SDI and SK On also showing improved performance
LG Energy Solution (373220) is projected to return to profitability in the second quarter of this year, posting an operating profit of 215.6 billion won. This marks a return to profitability in just three months, following an operating loss in the 200 billion won range in the first quarter.
Compared to the second quarter of last year, operating profit (492.2 billion won) has fallen to about half that level. However, considering that operating profit was a mere 1.4 billion won last year after excluding the 490.8 billion won in IRA tax credits, this year’s profitability represents a significant improvement.
Samsung SDI (006400) is also expected to see a significant improvement in its performance compared to the previous quarter. Samsung SDI’s second-quarter operating loss is expected to be around 73.5 billion won, representing a significant reduction from the 397.8 billion won loss recorded in the same period last year. The loss is also expected to shrink substantially compared to the first quarter. First-quarter operating profit stood at 155.6 billion won (including the Advanced Manufacturing Production Credit (AMPC) under the U.S. Inflation Reduction Act (IRA)).
SK On, the battery subsidiary of SK Innovation, is also expected to see improvements in both revenue and operating profit compared to the previous year. As production capacity utilization stabilizes, the company is on track to see not only revenue growth but also an improvement in its operating profit margin.
EV market rebounds in Europe and South Korea… Recovery expected in North America
The recovery in second-quarter earnings is driven by a sharp rebound in EV sales. Automakers are launching new models not only in South Korea but also in major markets such as Europe, signaling an early overcoming of the “chasm.”
Global EV sales from January to April this year totaled 5.74 million units, a 3% decrease compared to the same period last year. However, the majority of the sales decline occurred in China. Since Chinese EVs primarily use domestic batteries, the impact of the decline in vehicle sales on South Korean battery companies is considered limited.
In contrast, sales in markets where “K-batteries” are primarily used, such as South Korea and Europe, showed an upward trend. Domestic EV sales had remained at around 140,000 units annually from 2022 to 2024, raising concerns about negative growth (CAGR -1%). However, they successfully rebounded to 215,000 units (+53%) last year, and cumulative sales from January to May of this year reached 155,000 units, a staggering 122% surge compared to the same period last year. If the current sales trend continues through the end of the year, annual domestic EV sales are projected to exceed 380,000 units this year.
Europe posted a growth rate of 31% during this period, exceeding the previously forecast 20%. This is attributed to factors such as the reinstatement of subsidies, a negative purchasing environment for internal combustion engine vehicles due to rising oil prices, and expanded sales in the compact segment, which places less of a financial burden on consumers.
A recovery is also expected in the North American market, where sales had stagnated following the abolition of the electric vehicle tax credit at the end of September last year. Samsung Securities projected that, contrary to predictions of a more than 20% decline in EV sales in the North American market this year, the decrease would be limited to around 10%. This assessment reflects the fact that demand is continuing to outperform expectations.
ESS demand surges 50%… Korean batteries benefit from U.S. supply chain restructuring
The expansion of the energy storage system (ESS) market, centered on the U.S., is also emerging as a new growth driver. The global ESS market is growing faster than expected. Global ESS demand this year is projected to reach 459.4 GWh, a 50% increase compared to last year (306.6 GWh).
This represents an increase of nearly 100 GWh compared to the forecast for this year (360 GWh) released last November. Forecasts for the U.S. and Chinese markets have been revised upward by 35% from previous estimates, while the European forecast has been raised by 10%.
In particular, policy changes by the U.S. government are also working in favor of Korean companies. Starting this year, the U.S. is offering a tax credit of up to 40% for products where more than 55% of the total cost is sourced from supply chains outside China. At the same time, it is imposing high tariffs on Chinese-made batteries.
This policy is designed to encourage a gradual reduction in reliance on Chinese batteries, and observers believe these changes will present new opportunities for Korean battery manufacturers.
Domestic battery companies are accelerating the expansion of their local production capacity in the U.S. The securities industry estimates that by the end of 2026, the combined U.S. ESS production capacity of the three major Korean battery companies will reach 92 GWh.
As local ESS production in the U.S. expands, benefits from the AMPC are also expected to grow. The securities industry forecasts that LG Energy Solution’s AMPC receipts will rise from 1.4 trillion won this year to 3.9 trillion won next year, while Samsung SDI’s will increase from 600 billion won to 1.6 trillion won.
The share of ESS sales in LG Energy Solution’s total revenue is projected to rise from 36% this year to 47% next year, while Samsung SDI’s share is expected to increase from 29% to 34%.
Industry observers expect the trend of improving earnings in the second half of the year to become even more pronounced, with expectations that Samsung SDI will follow LG Energy Solution’s lead in the second quarter and return to profitability in the third quarter.
Samsung Securities forecasts that Samsung SDI will return to profitability in the third quarter of this year, driven by expanded sales of battery backup units (BBUs) for data centers and ESS, as well as increased shipments of batteries for electric vehicles in Europe.
3. Domestic EV Sales See ‘Surprise Rebound’… Will LG Energy Solution and SK On Get a Breath of Fresh Air?
- Domestic EV sales up 122%... Hopes for a battery market rebound
- “Domestic market recovery is positive” … Focus on improved utilization rates and profitability
As the domestic electric vehicle (EV) market shows an unexpected recovery, expectations for the battery industry are rising. Amid growing concerns that the EV chasm (a temporary stagnation in demand) will persist due to the slowdown in the U.S. EV market and the reduction of subsidies, analysts suggest that the increase in domestic EV sales could help LG Energy Solution and SK On defend their earnings.
According to the industry on the 19th, expectations for expanding battery demand are rising as domestic EV sales have surged recently. In a recent report, KB Securities projected that domestic demand for EV batteries would increase from 17.5 gigawatt-hours (GWh) last year to between 30.9 and 38.9 GWh this year. LG Energy Solution is estimated to hold approximately 45% of the domestic EV battery market share, while SK On holds about 25%.
This trend is driven by a faster-than-expected recovery in the domestic electric vehicle market. According to KB Securities’ analysis of MarkLines data, domestic EV sales from January to May this year reached 155,000 units, a 122% increase compared to the same period last year. The EV penetration rate also rose from 12.9% last year to 22.6% this year. If the current sales trend continues, annual sales are projected to exceed 380,000 units.
Industry observers attribute the sales increase to falling EV prices, rising international oil prices, and the government’s strengthened policies to promote eco-friendly vehicles. There is also a growing consensus that the domestic EV market, which had stagnated at around the mid-100,000-unit range for several years, has returned to a growth trajectory.
The battery industry had previously expressed concern over the impact of slowing demand in the U.S. market. In the U.S., sales growth has slowed since the expiration of electric vehicle purchase subsidies last October. With the domestic market showing a sharp recovery, analysts suggest that the domestic market may partially offset the decline in U.S. electric vehicle demand. As of April this year, domestic electric vehicle sales had expanded to 52% of U.S. sales levels.
Industry observers are watching to see if LG Energy Solution and SK On will see increased battery shipments and improved capacity utilization rates should the strong domestic EV sales trend continue. In particular, there is interest in whether battery manufacturers, which have historically relied heavily on the U.S. market, will be able to reduce some of the volatility in their earnings through the recovery of the domestic market.
A battery industry official stated, “Although the domestic market’s share is not overwhelmingly large, the recent sales growth is clearly a positive sign,” adding, “Amid ongoing uncertainty in the U.S. and European markets, expanding domestic demand could help battery manufacturers improve their capacity utilization rates and profitability.”
Ⅵ. ROBOT INDUSTRY TRENDS
1. HD Hyundai Begins Development of Physical AI Robots for Shipbuilding… Industry’s First Use of NVIDIA Platform
- Welding, painting, and bending to be introduced first, with expansion under review
- Plans to deploy across all core shipbuilding processes
- Data training in virtual shipyards developed by both companies
- Goal of establishing a smart shipyard by 2030
It has been confirmed that HD Hyundai is developing physical AI robots based on NVIDIA’s robot simulation platform, “Isaac Sim.” HD Hyundai plans to deploy these robots across all core shipbuilding processes, including welding.
HD Hyundai is currently pursuing plans to apply physical AI robots that are trained using NVIDIA’s Isaac Sim platform to shipbuilding processes.
An HD Hyundai official stated, “We are developing the robots with the goal of on-site application,” adding, “We will first apply them to welding, painting, and bending operations, and then evaluate the potential for expansion.”
HD Hyundai’s shipyards are already utilizing collaborative robots in shipbuilding operations. However, these robots have the limitation of requiring human supervision. If a Physical AI environment is established through Isaac SIM, a shipbuilding environment powered by Physical AI, where robots independently perceive their surroundings and perform tasks, is expected to be realized.
Isaac SIM is a platform developed by NVIDIA for training AI robots in a virtual environment.
It is a method in which robots first learn data in NVIDIA Omniverse, which is a 3D collaborative ecosystem where the same physical laws as in the real world apply, and are then deployed directly to the site.
Isaac Sim is characterized by its realism and scalability, built on NVIDIA Omniverse and OpenUSD (Universal Scene Description), a next-generation data standard.
It utilizes real-time ray tracing technology to create a visual environment that closely resembles reality and incorporates NVIDIA’s Newton (a next-generation physics engine), which enables robots to accurately learn the laws of physics in the real world.
The cameras and various sensors, which serve as the robot’s eyes and ears, also operate using mechanisms identical to those found in real products. Thanks to this, developers can thoroughly validate autonomous navigation and precision manipulation technologies before deploying the robots in the field.
Isaac SIM is also credited with providing a breakthrough solution to the data shortage problem, which had been identified as the biggest obstacle to the widespread adoption of AI robots.
Training AI requires vast amounts of image and environmental data, but with Isaac SIM, developers can alter lighting, colors, and object positions in the virtual world in tens of thousands of different ways with just a few mouse clicks.
HD Hyundai is the first shipbuilder in the world to utilize the Isaac Sim platform. Currently, in the logistics industry, Amazon in the U.S., and in the automotive industry, BMW in Germany and Toyota in Japan are using Isaac Sim-based robots in the field.
An HD Hyundai official explained, “The robot has been developed to the point where it can perform simple welding tasks on-site.”
2. A 60-Year Partner of Hyundai Motor Now Makes Robot Legs… The ‘Evolution’ of the Robotics Supply Chain
Recently visiting the SL factory in the Seongseo Industrial Complex in Dalseo-gu, Daegu, the robots were the first thing that catches eyes although it is an auto parts manufacturing plant. There, automated guided vehicles (AGVs) were transporting finished LED lamps for vehicles to the warehouse. Upon arriving at the warehouse, the AGVs used sensors attached to their robotic arms to read product information and transport the items to their designated locations. They continued working even when the workers were away for lunch.
Since introducing these mobile collaborative robots (robots capable of working in the same space as humans and engaging in physical interaction) in 2021, SL has reassigned six workers previously responsible for logistics to new production lines. Thanks to logistics automation, hourly production per worker has increased by about 10%, resulting in an annual productivity gain of approximately 25 billion won. As this is an early achievement following the introduction of physical artificial intelligence (AI), productivity is expected to rise rapidly each year.
SL, a Tier 1 supplier to Hyundai Motor, is expanding its business into the robot components sector in line with Hyundai’s recent expansion of its robotics business. In particular, SL is drawing industry attention for undertaking contract manufacturing of “MobED,” the mobile robot platform unveiled by Hyundai Motor. In addition, by supplying LiDAR modules, which serve as the “eyes of the machine” in autonomous driving, and battery pack assemblies (BPA), the company has established itself as a key supplier of robot components. It has also signed a contract to supply leg modules for “Spot,” the quadruped robot developed by Boston Dynamics, a robotics subsidiary of the Hyundai Motor Group, and will begin full-scale mass production within the year.
SL’s lamp business accounts for a significant portion of its revenue; out of last year’s total revenue of 5.2399 trillion won, 4.1002 trillion won came from the LED lamp division. In addition, the company produces various automotive components such as actuators and mirrors. SL has maintained a strong partnership with Hyundai Motor for nearly 60 years, having first supplied headlights to the automaker in 1969.
SL’s move to enter the robotics supply chain is closely tied to industry restructuring. Following Hyundai Motor’s acquisition of Boston Dynamics to strengthen its robotics capabilities, SL, as an established automotive parts supplier, is leveraging technologies that can be integrated with robotics to prepare for future industries.
SL has also embarked on the development of a finished, mobile, dual-arm robot for manufacturing. The company plans to deploy the “Ssülmo Robot”—a mobile robot that combines Neuromeka’s upper-body, dual-arm robot “M.AXion” with its own autonomous mobile robot (AMR)—on its production lines. Currently, “Ssülmo Robot” operates at 20–30% of human work speed, but the company believes that even a 50% increase in speed would make it viable for actual deployment. This is because, unlike humans, robots can operate continuously day and night.
The “Ssülmo Robot” is also scheduled to be deployed at the 29 production sites worldwide where SL operates in partnership with Hyundai Motor and Kia. This strategy to automate processes and boost production efficiency mirrors Hyundai Motor’s plan to gradually introduce Boston Dynamics’ humanoid robot “Atlas” to the Hyundai Motor Group Meta Plant America (HMGMA) in Georgia, U.S., by 2028. However, unlike Atlas, which is a bipedal robot capable of performing highly complex tasks, SL’s “Ssülmo Robot” robot is a wheeled humanoid, which is technically easier to implement.
◆ Auto parts companies are transforming into robotics firms
SL’s ability to quickly enter Hyundai Motor’s robotics supply chain is largely due to its expertise in actuator technology. SL manufactures SBW actuators, which transmit the driver’s gear-shifting commands to the transmission in electric vehicles, and CDM actuators, which are used to electrically open and close EV charging ports. This technology can be extensively applied to the production of robot joints and drive systems.
In addition to SL, a significant number of Hyundai Motor’s suppliers are seeking to transform themselves into robotics companies. Components such as motors, gearboxes, sensors, actuators, batteries, and controllers are used not only in cars but also in robots. It is believed that the suppliers’ established △quality certification systems △experience in large-scale mass production △global supply chains △and cost-reduction capabilities serve as key strengths in their entry into the robotics industry.
Hyundai Motor and Kia launched the “MobED Alliance” in March of this year, incorporating many of their existing suppliers. Notable members include SL, Seoyon E-Hwa, Sungwoo Hitech, Hyundai Sungwoo, Mobase, Sungju Sound, PHA, BH-EVS, Arevision, Hyundai Transys.
Seoyon E-Hwa specializes in plastic injection molding and lightweighting; Sungwoo Hitech in body frame manufacturing; and Hyundai Sungwoo in casting and machining. Mobase specializes in automotive electronics; PHA in door latches and electrification components; and BH-EVS in battery system technology.
◆Kickoff for building a domestic robot parts supply chain
Industry observers predict that since Hyundai Mobis, a Hyundai Motor affiliate, is responsible for supplying Atlas components, existing Hyundai Motor suppliers could also be integrated into the Atlas supply chain through Hyundai Mobis. A Hyundai Motor official explained, “The Hyundai Motor Group’s mission is to create a domestic robot parts ecosystem. Therefore, we actively encourage and support our suppliers in pursuing robotics businesses,” adding, “We are collaborating on robotics-related projects. We have also conducted open innovation initiatives in a three-party structure with domestic automotive parts companies and other startups.” He further explained, “We are also pursuing cooperation with existing automotive suppliers regarding the mass production of robots that are already in development, such as Spot.”
Even Hyundai Motor suppliers not participating in MobED are actively entering the robotics business. HL Mando is a prime example. During a conference call late last year, HL Mando identified the humanoid sector as a next-generation industry. The company forecasts the global market for humanoid actuators to reach at least 23 trillion won by 2035 and aims to capture 10% of that market, which is 2.3 trillion won. Specifically, the company plans to validate a pilot line dedicated to humanoid robots by 2028 and launch a global mass production system starting in 2029.
According to the “Humanoid Robots 2026” report published by the UK market research firm Interact Analysis, the humanoid robot market is projected to reach approximately $15 billion by 2035. Goldman Sachs forecasts global humanoid shipments to reach 1,378,000 units by 2035. However, the forecast range is wide, with a pessimistic projection of 703,000 units and an optimistic projection of 6,478,000 units.
◆ Global parts manufacturers like DENSO and Bosch are also transforming
The shift toward robotics by automotive parts companies first emerged among global firms. DENSO, a Toyota-affiliated automotive parts manufacturer based in Japan, is a prime example. While Denso’s traditional core businesses include engine control units (ECUs), electronic components, and sensors, it has recently begun selling small industrial robots and the collaborative robot “Kubota” through its robotics subsidiary, Denso Wave. These robots were originally developed in-house to automate production facilities. In particular, its small 6-axis robot solutions, which are specialized for precision assembly and inspection processes, are widely regarded as having solidified the company’s position in the manufacturing automation market.
Bosch, a German automotive electronics manufacturer, has recently been expanding its robotics business across the board. Following the development and implementation of AMRs and AI-based production management systems in its own factories, the company is now diversifying its customer base. Bosch has also begun piloting “Digit,” a robot developed by the U.S. humanoid startup Agility, in its logistics facilities, marking the start of a practical demonstration phase in actual manufacturing and logistics processes.
Schaeffler, a global leader in bearings based in Germany, is also actively expanding its business in robotic actuators and gearboxes. Building on the motor and drive technology capabilities it has acquired through the electrification of automobiles, the company has fully committed to developing robotic joint drive systems. To secure the precision motion control technology essential for robotic drives, Schaeffler has also acquired companies such as EandM, a machine learning-based robotics software firm.
Canada’s Magna International is no exception. Magna is one of the world’s largest automotive parts suppliers, providing body components, chassis, and electrification parts. Magna has recently been expanding its use of robotic solutions to automate logistics within its manufacturing plants. It is also leading pilot projects for autonomous delivery vehicles and delivery robots in North America. It has made a strategic investment in the humanoid startup Sanctuary AI. Through this investment, Magna directly deployed Sanctuary AI’s humanoid robot “Phoenix” in its own automotive parts manufacturing plants to conduct pilot operations.
Germany’s Continental has entered the robotics market by leveraging its technological expertise in tires, automotive electronics, and Advanced Driver Assistance Systems (ADAS). Continental has recently significantly expanded its business in robot sensors and vision solutions, targeting the industrial robotics and logistics automation markets. The company has applied its expertise in automotive cameras, radar, and LiDAR technologies to enhance robots’ environmental perception and autonomous navigation capabilities. It has also launched its own brand, “Continental Mobile Robots,” to supply high-performance AMR products.
3. LG Electronics’ Ryu Jae-chul, “Formalizing a Strategic Partnership with NVIDIA in the Robotics Sector”
- Ryu Jae-chul, CEO of LG Electronics, focuses on data factory, robotics, etc.
- Detailing specific areas of collaboration with NVIDIA in the U.S.
- “Accelerating preparations for the future, including building a physical AI ecosystem”
Ryu Jae-chul, CEO of LG Electronics, stated on the 26th, “Through concrete discussions between the two companies—ranging from the construction of the LG Data Factory using NVIDIA’s platform, to the advancement of LG Electronics’ AI data center cooling solutions, and to strategies for creating synergies based on the establishment of a mass production system for LG robots—we are accelerating our preparations for the future by building a Physical AI ecosystem.”
Via his LinkedIn channel that day, CEO Ryu said, “LG Electronics and NVIDIA have finalized the specific areas of collaboration and strategic partnership regarding Physical AI through further discussions in the U.S.,” emphasizing that the data and manufacturing capabilities accumulated worldwide are LG Electronics’ competitive advantages.
CEO Ryu explained, “LG Electronics has access to sophisticated manufacturing data generated from 31 production facilities across 14 countries, and the volume of manufacturing and production data alone over the past decade amounts to 770 TB (terabytes).” This is equivalent to the storage capacity required for approximately 197,000 high-definition movies. He also emphasized that the company’s experience in understanding human interactions across diverse spaces, including homes, commercial spaces, industrial sites, and mobility, and translating these insights into products and services is a key competitive advantage in the era of Physical AI.
CEO Ryu said, “For decades, LG Electronics has been a company that has designed and operated various spaces, including homes, commercial facilities, factories, and mobility solutions, while maintaining close ties with customers,” adding, “Through this, we have accumulated a deep understanding of customers’ lifestyles, device usage patterns, movement patterns within spaces, and energy consumption habits.” CEO Ryu also remarked, “LG Electronics is a company equipped with a technology ecosystem capable of actually bringing the future envisioned by AI to life,” adding, “Together with global leaders like NVIDIA, we will connect AI to customer value and industrial innovation, turning the new possibilities of the Physical AI era into reality.”
Earlier this month, LG Group Chairman Koo Kwang-mo and NVIDIA CEO Jensen Huang met at the LG Twin Towers in Yeouido, Seoul, to solidify their partnership across the entire AI ecosystem, including Physical AI, AI infrastructure, and future mobility, and to strengthen their mid- to long-term collaboration, which includes the joint development of reference robots.
Subsequently, executives from major LG Group affiliates visited NVIDIA’s headquarters in Santa Clara, California, to discuss follow-up collaboration plans with NVIDIA’s leadership.
Ⅴ. BIO INDUSTRY TRENDS
1. Celltrion Kicks Off Its Transformation into a Global New Drug Company at ‘BIO USA 2026’
- Participating in the world’s largest bio exhibition for the 17th consecutive year
Celltrion announced that it will participate in the “2026 Bio International Convention (BIO USA),” taking place in San Diego, U.S., from the 22nd to the 25th (local time), to showcase its AI-based new drug development capabilities and the competitiveness of its next-generation drug pipeline to the global market, and to secure future growth engines through expanded global partnering.
BIO USA is the world’s largest biotech business event, bringing together global big pharma companies, biotech firms, investment institutions, research organizations, and licensing experts to discuss joint research, technology transfer, investment, and strategic partnerships. Now in its 33rd year, the event is expected to attract over 20,000 participants and visitors from more than 1,500 pharmaceutical and biotech companies, investors, and research institutions worldwide.
Celltrion has participated in BIO USA for 17 consecutive years since 2010, expanding its network with global pharmaceutical and biotech companies. This year, the company will operate a standalone booth spanning approximately 139 square meters to showcase Celltrion’s next-generation growth strategy and new drug development capabilities to the global market, while also conducting business meetings and technology exchanges with competitive companies.
In particular, Celltrion plans to utilize this year’s BIO USA not merely as a corporate promotional event, but as a global business platform to solidify its future growth strategy. Building on its accumulated capabilities in R&D, production, and commercialization in the biosimilars sector, the company intends to expand collaboration opportunities with global partners in next-generation technology areas such as AI-based new drug development, antibody-drug conjugates (ADCs), and multi-antibodies.
At this year’s event, Celltrion plans to actively showcase its capabilities in AI-driven new drug development and its business strategy. Leveraging the strategic location of its exhibition booth within the AI Zone, the company will present AI-based new target discovery and portfolio expansion, AI-driven next-generation multi-antibody design technology, development feasibility assessment technology, and data-driven research platforms to global visitors attending the event.
Celltrion is conducting research that utilizes AI to predict and evaluate the design, physicochemical properties, manufacturability, and immunogenicity of antibody candidates, and to identify candidates with a high likelihood of success in clinical development at an early stage. Through this, the company aims to enhance the efficiency of the new drug development process, shorten development timelines, and increase the likelihood of success. Additionally, Celltrion is building a multimodal AI-based research platform that integrates and analyzes diverse research data to advance its data-driven decision-making system for new drug development.
Alongside its AI-based R&D strategy, Celltrion’s next-generation drug pipeline, including ADCs and multispecific antibodies, is also set to be a key focus at this year’s event. Celltrion is accelerating development to foster ADCs and multispecific antibodies as future core growth drivers, and plans to actively showcase related technologies and pipeline progress to global pharmaceutical companies, biotech firms, and investors at the event.
Expanding global partnerships is also a key objective of this year’s participation in BIO USA. During the event, the company plans to hold numerous strategic meetings with global pharmaceutical companies and biotech firms to explore various business opportunities, including licensing-in, joint development, and technology collaboration, aimed at expanding its pipeline of biosimilars and new drugs that demonstrate market potential and competitiveness. Additionally, the company intends to strengthen its manufacturing and business competitiveness by meeting with suppliers of materials, parts, and equipment to improve production efficiency and enhance technological capabilities, as well as by identifying global partnering opportunities that align with its key business areas.
2. K-Bio Takes First Step in Domestic CAR-T… Next Battlegrounds: In Vivo and Solid Tumors
- GC Green Cross and Appclon join forces for in vivo CAR-T joint development
With the approval of the first chimeric antigen receptor T-cell (CAR-T) therapy developed by a domestic company, the CAR-T development strategies of the Korean pharmaceutical and biotech industry are becoming more sophisticated. While the development of in vivo CAR-T therapies, which is aimed at reducing the time and cost burdens associated with patient-specific manufacturing, is gaining momentum, efforts to expand the treatment scope beyond blood cancers to solid tumors are also continuing.
According to industry sources, GC Green Cross signed a strategic business agreement with Appclon on the 16th to jointly research and develop in vivo CAR-T therapies.
The two companies plan to establish a joint platform by combining GC Green Cross’s mRNA-LNP-based cell-specific expression and delivery technology and GMP production capabilities with Appclon’s CAR-T and antibody platforms, T-cell-specific antibody assets, and CAR-T clinical experience.
Unlike the conventional in vitro manufacturing method—which involves extracting a patient’s T cells, introducing genetic material, and re-infusing them—in vivo CAR-T directly delivers genetic information to T cells within the body, inducing the production of CAR-T cells internally.
Given that conventional CAR-T therapies face limitations such as patient-specific manufacturing, long production lead times, and high costs, the in vivo approach is viewed as a next-generation strategy that simultaneously targets manufacturing accessibility and production scalability.
Currently, the two companies are in the candidate identification phase for various indications, including blood cancers, and plan to move into preclinical and clinical trials while expanding global partnerships.
Efforts to develop treatments for solid tumors are also continuing. Although solid tumors account for approximately 90% of all cancer patients, they remain an largely unexplored area in CAR-T therapy development.
This is because, unlike in blood cancers, CAR-T cells have difficulty penetrating tumor tissue, the tumor microenvironment suppresses the activity of immune cells, and there is high antigenic heterogeneity, with varying expression of target antigens among cancer cells.
HLB Innovation is accumulating clinical data on CAR-T therapies for solid tumors through its U.S. subsidiary, Verismo Therapeutics.
Verismo is currently conducting a Phase 1 clinical trial of “SynKIR-110” in patients with advanced solid tumors, such as ovarian cancer, mesothelioma, and cholangiocarcinoma, that express mesothelin.
SynKIR-110 is a candidate drug based on the KIR-CAR platform, designed to reduce T-cell exhaustion and enhance functional persistence within the solid tumor microenvironment.
CellabMED is developing “CLM-103,” a solid tumor CAR-T cell therapy that targets specific antigens in malignant brain gliomas, including glioblastoma. CLM-103 is a CAR-T cell therapy that recognizes and kills cancer cells expressing the IL13Rα2 protein.
IL13Rα2 is known to be overexpressed in certain solid tumors, such as malignant glioblastoma, while it is barely expressed in normal organs. In March of last year, the company received approval for a Phase 1b/2 Investigational New Drug (IND) application from the Ministry of Food and Drug Safety.
Vaxcell Bio is also developing a dual-target CAR-T therapy aimed at solid tumors.
Vaxcell Bio’s solid tumor CAR-T candidate, “VCB-1204,” is a dual-target CAR-T therapy that simultaneously targets PD-L1 and EphA2, both of which are expressed in refractory solid tumors. It is designed to ensure expandability across various solid tumors and to reduce immune evasion by cancer cells. It is currently in the preclinical stage.
Market growth prospects are also fueling the development race among domestic companies.
Market research firm Mordor Intelligence forecasts that the global CAR-T therapy market will grow from $4.2 billion (approximately 6.4 trillion won) last year to $9.03 billion (approximately 13.8 trillion won) by 2031.
3. CHA Biotech Launches ‘Korea Clinical Link’ Platform for U.S. Biotech Companies
Cha Biotech announced on the 19th that it has launched the “Matica K-IIT Program” in collaboration with its U.S. subsidiary, Matica Biotechnology (Matica Bio), targeting cell and gene therapy (CGT) development companies.
This program is a service that supports U.S. biotech companies in evaluating their cell and gene therapy candidates through investigator-initiated trials (IITs) in Korea. Its goal is to secure early-stage clinical data by linking U.S. manufacturing capabilities with Korea’s clinical infrastructure.
Investigator-initiated trials are clinical trials led by researchers at medical institutions and are used as a means to obtain early efficacy and safety data. In the cell and gene therapy industry, it is common for companies to use these early clinical data to attract follow-up investment or pursue technology transfers.
The Matica K-IIT program is a model that combines Matica Bio’s process development and manufacturing capabilities with the CHA Bio Group’s hospital network. The company plans to conduct investigator-initiated trials by establishing a collaborative framework with domestic university hospitals, including Bundang CHA Hospital.
CHA Biotech believes that, given that some U.S. biotech companies are currently conducting early-stage clinical trials overseas, linking U.S. manufacturing with clinical trials in Korea could serve as an alternative in terms of shortening development timelines and improving clinical operational efficiency.
The company also explained that South Korea is gaining attention as a destination for investigator-initiated clinical trials in the cell and gene therapy sector, as it possesses global competitiveness in terms of Good Clinical Practice (GCP) standards and research infrastructure.
Paul Kim, CEO of Matica Bio, stated, “By combining Korea’s clinical trial capabilities with Matica Bio’s CGT manufacturing capabilities, we will safely and efficiently support our clients from early-stage research through global clinical trials.” He added, “We plan to actively introduce the ‘Matica K-IIT Program’ during meetings with global clients at ‘Bio USA,’ the world’s largest biotech event, and devote our full efforts to identifying new business opportunities.”
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Korean Industrial Insight No.28 of AI, Semiconductors, Batteries, Electric vehicles, Robot, and Bio in chinese
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