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Korean Industrial Insight No. 28 of AI, Semiconductors, Batteries, Electric vehicles, Robot, and Bio |
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2026-09-03 |
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Ⅰ. AI INDUSTRY TRENDS
1. Korea’s Public Procurement Service Establishes ‘AI Procurement Innovation Division’… “Accelerating the AI Transformation”
The Korea Public Procurement Service announced on the 21st that it will establish and operate the “Artificial Intelligence (AI) Procurement Innovation Division.”
The AI Procurement Innovation Division will serve as the control tower for the major AI transformation in the public procurement sector. Its primary roles include overseeing the formulation of AI strategies and external cooperation, as well as identifying demand for AI services and ideas in the procurement field to drive related projects.
It also plans to directly develop AI services and AI agents, which will be responsible for building procurement data and operating AI infrastructure, to support their use across all procurement operations. The strategy is to enhance operational efficiency by integrating AI with procurement data and to provide customized services to companies and client agencies.
Earlier this year, the Public Procurement Service established a master plan for the AI transformation of public procurement, laying the groundwork for introducing AI services throughout the entire public procurement process. Since then, it has developed and operated AI systems such as the “Intelligent Estimated Price Preparation Support System” and the “General Services AI Work Support Agent.”
The Commissioner of the Korea Public Procurement Service stated, “We will combine the experience the agency has accumulated over the years with AI to proactively respond to the ever-changing external environment and strive to achieve innovations in procurement services that the public can tangibly experience.”
2. “Going All Out to Recruit AI Talent”… Samsung Electronics Recruits Experienced Foreign Professionals and SK Hynix Hires New Graduates
- SK Hynix recruiting for 23 positions… Removes educational requirements, introduces LLM interviews
- Samsung DS hiring experienced foreign professionals in AI and fab automation… Recruiting DX robotics talent
Samsung Electronics and SK Hynix have set out to secure talent to bolster their competitiveness in the artificial intelligence (AI) business.
SK Hynix is accepting applications for its “Recruitment for 2026 Second-Half Technical and Administrative New Employment” until the 26th.
The positions available span 23 fields, including design, devices, R&D processes, product engineering, package development, solution software and hardware, mass production technology, and quality assurance.
This is SK Hynix’s first second-half new employee recruitment drive since the company completely abolished educational requirements in June.
At a recruitment briefing held starting on the 13th, SK Hynix explained that as AI rapidly replaces simple knowledge memorization and routine tasks, fundamental thinking and problem-solving skills have become increasingly important.
Based on this, the company identified ▲fundamental inquiry skills ▲adaptability to change ▲and diversity of thought as the three key future competencies required in the AI era.
The company explained that it will evaluate applicants based on their ability to delve into the essence of a problem, adapt to change, and find solutions from diverse perspectives rather than on standardized criteria such as school background or academic degrees.
The range of job openings has also been broadened to include not only traditional semiconductor design, manufacturing processes, and mass production but also the systems and software fields.
In the system architecture and software solutions roles, employees will conduct research on next-generation memory and related systems, such as custom high-bandwidth memory (HBM), Compute Express Link (CXL), processing-in-memory (PIM), and processing-near-memory (PNM).
They are also responsible for developing AI models and platform software, data center memory and storage server architectures, and memory-centric AI semiconductor architectures.
In the Solution Software role, employees design the system architecture and firmware for data center and enterprise solid-state drives (SSDs) and develop memory and system software optimized for AI workloads.
AI is also utilized in the selection process.
During the “half-day in-depth interview” to be held this November, applicants will give a problem-solving presentation (PT) in which they use a large language model (LLM) to solve a job-related scenario task.
In-depth interviews, group discussions, and remote video interviews will also be conducted, and applicants for IT and solution software positions will take a coding test instead of the SKCT cognitive assessment.
Samsung Group has launched an initiative to secure global professionals by recruiting experienced foreign employees.
Starting on the 20th and running through the 2nd of next month, Samsung is recruiting foreign experienced professionals in the R&D field, primarily at Samsung Electronics and major electronics affiliates.
Among these, Samsung Electronics is currently accepting applications for both its DS and DX divisions.
The DS Division is recruiting personnel in the fields of package development, circuit design, system architecture design, AI, machine learning (ML), data analysis, and fab and infrastructure automation.
In particular, the company is separately recruiting personnel for the automation of semiconductor production facilities, the construction of AI and ML platforms, and the development of automation solutions, thereby focusing not only on design and processes but also on the AI transformation of manufacturing sites.
The DX Division has placed particular emphasis on the robotics field.
Nine of the 12 recruitment areas are for positions related to humanoid and industrial robots.
Centered around the Robotics Experience (RX) Business Promotion Office, which was newly established last month, the company is securing global R&D talent to develop robot hands, electrical systems, and full-body control software.
3. SK Telecom and SK Broadband Spin Off AI Data Center Business… Accelerating Implementation of ‘15GW Blueprint’
SK Telecom and SK Broadband are spinning off their artificial intelligence (AI) data center business into a separate legal entity. This move is seen as an effort to consolidate AI data center-related organizations and assets scattered across the two companies to accelerate investment attraction and business expansion.
SK Telecom and SK Broadband each held board meetings today and approved the proposal to spin off their AI data center business units. The two companies plan to finalize the specific spin-off method, the equity structure of the new entity, and the launch date before proceeding with the relevant procedures.
The core of this spin-off is to combine SK Telecom’s AI data center-related business with SK Broadband’s data center business into a separate legal entity. The reason both companies approved the spin-off proposal at their respective board meetings is that the businesses, organizations, and assets of both companies are included in the spin-off. Details regarding the assets and personnel to be transferred are expected to be finalized sequentially.
SK Telecom and SK Broadband have each operated their own AI data center organizations to date. SK Telecom was responsible for AI cloud and graphics processing unit (GPU) services, as well as data center business development, while SK Broadband handled the construction and operation of data centers nationwide and customer sales. However, critics have pointed out that the division between the parent company and its subsidiaries has limited the ability to centralize large-scale investments and business decision-making.
Last month, SK Telecom kicked off a full-scale reorganization by establishing the “AI DC Integration Task Force” directly under the CEO. It subsequently established a separate legal entity, “SK Hyper,” responsible for securing AI data center sites and power supplies, as well as attracting global customers. This spin-off is interpreted as a move to reorganize the development, investment, construction, and operation functions of the AI data center business into an independent business structure.
The industry views this spin-off as a preliminary step toward attracting large-scale external capital. AI data centers require massive funding for everything from securing land and power to purchasing GPUs and building cooling facilities. Separating the related business into a separate legal entity, rather than keeping it within a telecommunications company’s internal organization, makes it relatively easier to attract strategic or financial investors and utilize project financing.
AI data centers are the fastest-growing segment of SK Telecom’s business. In the second quarter of this year, revenue from AI data centers reached 136.2 billion won, a 92.5% increase compared to the same period last year. SK Telecom plans to gradually bring online a total of 5 gigawatts (GW) of AI data centers at major locations nationwide starting in 2029, with the goal of expanding this capacity to 15 GW by 2035.
SK Telecom is also partnering with NVIDIA to build “AI Factories,” next-generation AI data centers. An AI Factory is a facility that combines GPUs, high-speed networks, and power and cooling infrastructure to generate the computational resources needed for AI training and inference. SK Telecom plans to begin operating AI Factories in 2027 and gradually expand them to a gigawatt-scale. This spin-off is seen as an effort to clearly establish a dedicated entity responsible for the investment, construction, and operation of these massive AI infrastructure projects.
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. South Korean Government Sets Aside Tax Revenue from Semiconductor Boom for Future Growth… Establishes “Future Response Fund”
- Setting aside additional tax revenue exceeding long-term trends… A fiscal safety net in case of declining tax revenue
- Focused investment in four key areas: growth engines (including youth and AI), local communities, education and talent
- To be operated as a multi-ministerial fund… Related legislative package to be submitted to the National Assembly in September
The government is establishing the “Future Response Fund” to concentrate investment from the massive increase in tax revenue—driven by the semiconductor boom and other factors—into areas such as artificial intelligence (AI), future industries, and youth.
The plan is to utilize the tax revenue generated during boom periods for productive investments that boost potential growth rates, rather than spending it all on short-term consumption-driven expenditures, while also serving as a fiscal safety net to mitigate the problem of tax revenue sharply rising or falling depending on the state of the semiconductor industry.
The government held its first Fiscal Management Strategy Council meeting on the 21st and announced the “Future Response Fund Implementation Plan” containing these details.
The government views the next two to three years, during which the entire national system must be redesigned to keep pace with the spread of AI, as a critical period for unlocking new growth opportunities for the Korean economy. South Korea’s potential growth rate has been steadily declining, falling from 1.9% in 2025 to 1.7% this year and 1.5% next year, and is projected to enter the 0% range by the 2040s.
Accordingly, the government has decided to redirect the fiscal flexibility secured through the semiconductor boom toward productive spending aimed at raising the potential growth rate, and to invest boldly and swiftly in future growth sectors.
Another objective of establishing this fund is to reduce the volatility in tax revenue inherent in the economy, which is highly dependent on the semiconductor industry.
Since key industries such as semiconductors typically follow a 3- to 5-year business cycle, tax revenue tends to rise sharply during boom periods and plummet during downturns. Expanding fiscal spending when tax revenue increases and cutting it when it decreases could actually exacerbate economic volatility; therefore, the government plans to establish a buffer mechanism by accumulating excess tax revenue from boom periods in the fund and utilizing it when needed.
Tax revenue exceeding the long-term trend is deposited into the fund… and withdrawn when revenue declines
The core source of funding for the Future Response Fund is “additional tax revenue”—revenue generated when tax revenue exceeds its long-term growth trend.
The government has decided that if the domestic tax revenue budget for the following fiscal year exceeds the trend figure—calculated based on the average annual growth rate of domestic tax settlements over the past 10 years—the difference will be transferred from the general account to the Future Response Fund for accumulation. Conversely, if the revenue budget falls below the trend figure, funds will be transferred from the fund back to the general account.
For example, if tax revenue exceeds the normal trend due to changes in the economic structure or significant economic fluctuations—such as a semiconductor supercycle—the system is designed to set aside a portion of that revenue for the future rather than using it all for current-year expenditures.
Focused Investment in Youth, AI, Local Communities, and Talent
The Future Response Fund, established in this manner, will focus its investments on four key areas: △ youth △ growth engines △ local communities △ education and talent.
In the youth sector, the fund will be used to provide support tailored to different life stages, including employment, housing, assets, marriage, and childbirth.
In the growth engines sector, investments will be made to foster cutting-edge strategic industries, such as AI, the three major mega-projects, and the seven SEED initiatives.
It will support the development of cutting-edge AI, physical AI, and AI data centers (AIDCs), and build the infrastructure, such as power and water supplies, necessary to advance the three major megaprojects.
In the regional sector, the focus is on laying the foundation for locally driven growth by improving living conditions. This includes expanding residential infrastructure to attract new residents, expanding the basic income program for rural and fishing communities, and providing financial support to local governments for administrative consolidation and support for future regional growth.
In the education and talent sector, with the goals of cultivating world-class talent and building a “ladder of hope,” the plan supports the strengthening of higher and lifelong education—including the cultivation of top talent in science, engineering, and technology; the recruitment of outstanding international talent; the enhancement of university competitiveness; and improvements in vocational and technical education—as well as early childhood education.
The government plans to allocate funds primarily to projects that align with the so-called “NEXT Principles”—which stand for capital accumulation (New-Capital), bold investment (Enterprising), flexible execution (fleXible), and timeliness (Timely).
Managed Across Five Accounts… Surplus Funds to Be Actively Invested
The Future Response Fund will be operated as a “multi-ministerial fund” shared by various ministries. The Ministry of Planning and Budget will oversee the overall management of the fund, while each relevant ministry will directly carry out its own fiscal projects using the fund’s resources.
The fund will consist of five accounts: the General Account, the Youth Account, the Growth Engine Account, the Local Government Account, and the Education and Talent Account. A public-private joint fund management council, comprising experts and representatives from relevant ministries, as well as subcommittees for each of the four key investment areas, will also be established.
Surplus funds not immediately used for projects will be actively managed through a dedicated management agency. The plan is to secure stable project funding and increase investment returns by investing in bonds and stocks, within limits that do not compromise the fund’s objectives.
2. Samsung Electronics Reduces Resistance in Ultra-Fine AI Semiconductor Wiring by 45%... World’s First Achievement
- Samsung Electronics’ SAIT secures core technology for high-alignment, high-conductivity interconnects
- Expected to overcome limits of semiconductor miniaturization… Published in a leading international academic journal
Samsung Electronics’ Samsung Advanced Institute of Technology (SAIT) has achieved a world-first by utilizing trace amounts of a carbon-based catalyst to control the crystalline orientation and grain boundaries of metals, thereby reducing the resistance of ultra-fine interconnects by approximately 45%.
According to Samsung Electronics, a SAIT research team has pioneered a new method for reducing resistance in ultra-fine metal interconnects—a critical factor determining the performance and power efficiency of advanced logic semiconductors for artificial intelligence (AI) and high-performance computing (HPC). The research findings were published in the academic journal Science on the 13th.
As competition over AI semiconductor performance intensifies, the importance of “scaling” technology, which makes semiconductor circuits smaller and denser, is growing. However, as circuits become smaller, the metal interconnects that transmit electrical signals within the chip also become thinner, causing resistance to increase sharply and becoming a major obstacle to improving semiconductor performance.
Semiconductors Get Smaller, but Wiring Resistance Increases… The “Scaling Dilemma” of Advanced Semiconductors
Inside semiconductors, there are microscopic metal interconnects that link countless transistors (microscopic switches that turn current on and off) to enable the transmission of electrical signals. To use a road analogy, if transistors are buildings, the metal interconnects act as the roads connecting them.
To improve semiconductor performance, as transistor sizes are reduced and more transistors are integrated, the metal wiring connecting them must also become thinner.
However, a key challenge arises when the metal wiring becomes thinner than a certain threshold: resistance actually increases sharply. This is because electrons traveling through the wiring frequently collide with “Grain Boundary”—the boundaries between metal crystals—which hinders their movement.
Controlling the “Orientation” and “Boundaries” of Metal Crystals with Trace Amounts of Carbon… World’s First Implementation
The SAIT research team solved this problem not by changing the wiring material itself, but by using a trace amount of a carbon-based catalyst to control the metal crystals so that they realign in a specific direction.
In other words, they reduced the number of “obstacles” in the path of the electrons and modified the remaining obstacles to make them easier to pass through, thereby enabling a smoother flow.
The research team applied this technology to ruthenium (Ru)—a material gaining attention as a next-generation interconnect material—and succeeded in creating a thin film in which more than 99% of the crystals are aligned in the same direction.
Expectations for Core Technology to Boost AI and HPC Semiconductor Performance and Power Efficiency
With the proliferation of generative AI leading to a surge in computational load on AI accelerators and HPC semiconductors, the semiconductor industry faces the critical challenge of simultaneously improving chip performance and reducing power consumption.
As advanced semiconductors become increasingly highly integrated, not only the performance of the transistors themselves but also the resistance and signal delay in the metal interconnects linking them become key factors determining chip performance. As interconnect miniaturization progresses, the importance of technologies that reduce the resistance generated in these interconnects is expected to grow.
This technology is significant in that it presents a new approach capable of fundamentally mitigating the problem of increased resistance arising from ultra-fine wiring.
3. Next-Generation Semiconductor Packaging Industry Expo Opens
- Samsung Electronics and SK Hynix showcase their technologies
- Over 150 domestic and international companies participating (26th… 28th)
The Advanced Semiconductor Packaging & Chiplet Show (ASPS 2026),” a specialized exhibition for semiconductor packaging, opened on the 26th.
Co-hosted by Gyeonggi Province and Suwon City, the “Advanced Semiconductor Packaging & Chiplet Show” will be held at the Suwon Convention Center through the 28th. The event provides an opportunity to explore the latest technologies and industry trends in the fields of advanced semiconductor packaging (post-manufacturing processes) and chiplets (small chips organized by function).
Approximately 150 domestic and international companies, including Samsung Electronics and SK Hynix, are showcasing a variety of technologies and products related to next-generation technologies, as well as materials, components, equipment, measurement and inspection, and back-end processes.
During the show, the following events will take place: ▲ the Semiconductor Packaging Trend Forum (SPTF) ▲ the SBJ Materials, Components, and Equipment Technology Convergence Forum Symposium ▲ technical seminars by participating companies ▲ export and purchasing consultations with domestic and international buyers ▲ and a semiconductor job fair.
In addition, a joint pavilion will be operated to promote Gyeonggi Province’s policies for fostering the semiconductor industry. Eleven companies and the Advanced Institute of Convergence Technology will introduce the technologies and products of semiconductor companies based in the province and work to expand domestic and international sales channels.
Gyeonggi Province plans to operate the show as a comprehensive business platform that goes beyond a simple product exhibition to facilitate technological cooperation among companies in the advanced packaging sector, open new sales channels, and build global networks.
Ⅲ. BATTERY AND ELECTRIC VEHICLE INDUSTRY TREND
1. Global Patent Registrations by Three K-Battery Companies Have Nearly Doubled in Three Years… Approaching 100,000 Patents
- LG Energy Solution leads with 62,500 patents… Secures “premium patents” for improved safety and performance
- Samsung SDI holds patents for prismatic batteries and NCA… SK On possesses high-nickel battery technology
The number of patents registered worldwide by the three major South Korean battery companies—LG Energy Solution, Samsung SDI, and SK On—has been tallied at nearly 100,000. This represents a roughly twofold increase in registered patents over the past three years.
This is interpreted as a strategy by the battery industry to prevent overseas latecomers, such as those from China, from freeloading on their technology, secure a commanding global lead, and simultaneously expand economic profits by leveraging rights to innovative technologies.
As of the end of last month, LG Energy Solution, Samsung SDI, and SK On had registered a total of approximately 93,500 patents with relevant authorities both domestically and internationally.
The combined number of registered patents held by the three battery companies has been rising sharply year by year, from approximately 50,000 in 2022 (as of year-end) to 56,000 in 2023, 66,000 in 2024, and 81,000 last year.
By company, LG Energy Solution holds 62,500 patents, Samsung SDI holds 27,700, and SK On holds 3,220.
For LG Energy Solution, the industry leader in South Korea, the number of globally registered patents has increased nearly 2.5-fold, from about 26,000 in 2022 to the end of last month.
Based on the number of patent applications currently under examination, it ranks first among battery companies worldwide. LG Energy Solution surpassed 100,000 global patent applications last May and, as of the end of last month, had filed approximately 107,000 applications.
Samsung SDI’s registered patents increased from approximately 22,400 in 2022 to about 27,700 as of the end of last month. SK On’s registered patents nearly tripled, rising from about 1,100 in 2022, the year following its spin-off, to about 3,200 last month.
The three battery companies view patents as more than just a means of protecting their rights; they see them as engines for future growth and are focusing their efforts on securing high-quality patents that establish a significant technological lead over domestic and international competitors.
LG Energy Solution continues to develop key next-generation patent areas, such as prismatic lithium-manganese-rich (LMR) cathode technology, which enhances cost competitiveness, and all-solid-state batteries, which maximize safety by replacing liquid electrolytes with solids.
Samsung SDI holds exclusive patents in the fields of prismatic batteries, which simultaneously enhance safety and performance, and nickel-cobalt-aluminum (NCA) ternary technology. It is also further advancing its prismatic battery technology by applying high-energy-density and fast-charging technologies, while pursuing the expansion of its strategic patent portfolio with a focus on mass production technologies for next-generation batteries, such as all-solid-state batteries.
SK On was the first in the world to develop NCM9 technology, which is a high-nickel battery that boosts performance by increasing nickel content to approximately 90 percent, and holds patents for innovations such as the “prismatic on-vent cell,” which enhances safety and design flexibility by directly etching vents (gas outlets) at desired locations on prismatic aluminum cans.
2. Samsung SDI Raises KRW 4.4 Trillion by Selling Shares in Samsung Display… Secures Funding for Battery Investments
- Sells 5% stake in Samsung Display… Stake reduced from 15.2% to 10.2%
- Expected to be used to secure future growth engines, such as capital investment in Synergy Cells’ U.S. facilities
- Responding to new demand for ESS, UPS, and humanoid robots… Continuing investment in LFP and all-solid-state batteries
Samsung SDI will secure approximately 4.45 trillion won in investment funds by selling a portion of its stake in Samsung Display. The funds are expected to be used for investments aimed at securing future growth engines, such as the construction of a battery plant in the U.S.
On the 21st, Samsung SDI announced in a regulatory filing, “We have decided to transfer 13,088,235 shares of Samsung Display to Samsung Display to secure investment funds for future growth engines.”
The shares scheduled for sale represent approximately 33% of the 39,856,654 Samsung Display shares held by Samsung SDI. The sale is valued at approximately 4.45 trillion won, and if the transaction proceeds as planned, Samsung SDI’s stake in Samsung Display will decrease from the current 15.2% to 10.2%.
Samsung SDI did not disclose specific plans for the use of the funds raised. However, it is speculated that the funds may be used for facility investments, such as the “Synergy Cells” battery plant currently under construction in New Carlisle, Indiana.
This stake sale is interpreted as a demonstration of Samsung SDI’s commitment to continuing investments aimed at securing a foundation for mid- to long-term growth, particularly as the company has recently shown an improving trend in its financial performance.
In particular, demand for energy storage systems (ESS) and uninterruptible power supplies (UPS) is growing rapidly due to the recent increase in AI data centers. The company is also expanding business opportunities in new markets such as humanoid robots and aerospace.
Samsung SDI is also reportedly continuing to invest in production lines for lithium iron phosphate (LFP) and all-solid-state batteries since last year.
3. Switching Cars Due to High Gas Prices… 7 Out of 10 Say “Electric or Hybrid”
- Survey of 500 drivers
- Considering a vehicle replacement if gas prices rise 20%... 39.2% choose EVs, 36.8% choose hybrids
The survey found that 7 out of 10 drivers would consider replacing their vehicles if fuel costs rise. If they were to switch vehicles, 76% said they would prefer eco-friendly options such as electric and hybrid cars.
A survey of 500 drivers nationwide revealed on the 27th that 72.0% of respondents said they would consider replacing their vehicles if gas prices rose or remained high.
When asked about the threshold for a monthly increase in fuel costs that would prompt a replacement, “20% or more” was the most common response at 35%. This was followed by “15% or more but less than 20%” at 10.4%, “10% or more but less than 15%” at 9.8%, and “5% or more but less than 10%” at 1.6%. Additionally, 10.2% of respondents said they were already considering replacing their vehicle.
If oil prices remain high, the most common timeframe for deciding to replace a vehicle was “one year or more” at 26.8%. “Six months or more but less than one year” also accounted for 26.4%. This suggests that demand for vehicle replacements is more likely to intensify if high oil prices persist over the long term, rather than due to short-term spikes.
When replacing a vehicle, electric cars were the most preferred fuel type at 39.2%, followed by hybrids at 36.8%. Combined, these two eco-friendly vehicle types accounted for 76.0% of the total.
Additionally, 83.8% of respondents indicated they were willing to pay extra compared to the cost of an internal combustion engine vehicle to switch to an eco-friendly vehicle. Among them, 43.8% said they could pay 5 million won or more in additional costs.
Preferences for new versus used eco-friendly vehicles were similar. 45.2% of respondents said they would “choose a new car regardless of the price difference,” while 44.6% said they would “choose a used car if the price advantage is significant.”
Ⅵ. ROBOT INDUSTRY TRENDS
1. 84% of Korean Manufacturing Companies: “Physical AI Implemented or Planned… Expect 32% Productivity Improvement”
- KEF Survey on the status and perceptions of physical AI adoption
- 47% “already adopted”, 37% “plan to adopt”, 69% “plan to adopt humanoids
- “Job losses” 61.9%, “Concerns about instability” 34.5%
- Companies with 1,000 or more employees show increased use of physical AI
A survey found that 8 out of 10 domestic manufacturing companies have adopted physical artificial intelligence (AI) or plan to do so in the future. Companies expect physical AI adoption to boost productivity by an average of 31.9%.
These findings were announced on the 20th following a survey of 100 manufacturing companies with 500 or more employees regarding the current status and perceptions of physical AI adoption.
Physical AI refers to technology in which AI is integrated with physical systems, such as robots or automated equipment, to perform actual tasks. Representative examples include humanoid robots, autonomous vehicles, drones, automated guided vehicles (AGVs), and autonomous mobile robots (AMRs).
84.0% of the responding companies stated that they have adopted Physical AI, such as robots or autonomous vehicles, or plan to do so in the future. Only 16.0% responded that they have not adopted it and have no plans to do so in the future.
By company size, a higher percentage of companies with 1,000 or more employees (88.5%) reported having adopted or planning to adopt physical AI in the future compared to companies with fewer than 1,000 employees (68.2%).
When asked about the primary type of physical AI, companies that have already adopted it most frequently cited AGV/AMR-type systems (63.8%), while those planning to adopt it in the future most frequently cited humanoid-type systems (64.9%).
The primary application areas (multiple responses allowed) for companies that have currently adopted physical AI were assembly and manufacturing processes (66.0%) and logistics, transportation, and warehouse management (57.4%), in that order. Physical AI was also found to be utilized in areas such as product design and development (17.0%), quality inspection (14.9%), and safety management (10.6%).
The most commonly cited expected benefit of adopting physical AI was improved productivity and performance (45.2%), followed by resolving workforce management challenges such as labor shortages (26.2%) and preventing industrial accidents and reducing the risk of accidents (22.6%).
When asked about the impact on jobs within companies, 61.9% of respondents—the largest share—believed that the job displacement resulting from the adoption and expansion of physical AI would outweigh the creation of new jobs, leading to an overall reduction in employment. Meanwhile, 34.5% believed there would be no significant change in total employment, while only 3.6% expected an overall increase in jobs.
Challenges associated with the adoption and utilization of Physical AI were cited in the following order: risks stemming from technical instability and system failures (34.5%), uncertainty regarding profitability (return on investment) relative to investment costs (31.0%), and opposition to adoption from labor unions (workers) (27.4%).
2. Hyundai Motor’s KRW 9 Trillion Investment and KRW 736.7 Billion National Project… Accelerating Industrialization of Physical AI in Jeonbuk
- Hyundai motor begins full-scale investment in Saemangeum robot plant
- KRW 240 billion K-robot demonstration center also in the works
- Expansion of AX into agricultural machinery, commercial vehicle, and shipbuilding industries
Jeonbuk State is positioning physical AI and robotics as the two pillars of its future industries. The province plans to build an industrial ecosystem—spanning technology development, demonstration, and production—centered on the 736.7 billion won national physical AI project and Hyundai Motor Company’s Saemangeum robotics manufacturing plant. Saemangeum is also moving to restructure its industrial base around AI and robotics.
Jeonbuk Province announced on the 21st that it will integrate physical AI into existing manufacturing sectors, such as automobiles, agricultural machinery, and construction equipment, and foster the robotics industry as a new growth engine.
Physical AI is a technology in which artificial intelligence perceives and assesses real-world environments and carries out actual actions through robots or autonomous vehicles.
Technology demonstration labs established at Jeonbuk National University and the Korea Advanced Institute of Science and Technology (KAIST) have verified the feasibility of on-site application for companies within the province. The province has secured 76.6 billion won in national funding for related projects this year and plans to establish a Physical AI Innovation Campus to integrate technology development, demonstration, talent cultivation, and commercialization.
The robotics industry is another key pillar. Last February, Hyundai Motor signed an investment agreement to build a 400 billion won robotics manufacturing plant in Saemangeum. Related infrastructure, such as rental factories for partner companies and a business growth center, is also scheduled to be developed in the surrounding area.
Jeonbuk Province is also working with the Ministry of Trade, Industry and Energy to establish a 240 billion won “K-Robot Physical AI Demonstration and Sharing Center.” The plan is to support the development, demonstration, testing, and certification of domestically produced robots and core components, while encouraging existing automotive parts companies to enter the robot parts industry.
This strategy aligns with the restructuring of Saemangeum’s industrial structure. The revised master plan released by the Saemangeum Development Agency on the 20th includes expanding industrial land from the current 12.1 square kilometers to 37.5 square kilometers and reorganizing the industrial hub around four pillars: robotics and AI, advanced machinery, hydrogen, and RE100-related upstream and downstream industries. Hyundai Motor Group also plans to invest approximately 9 trillion won in AI data centers, a robotics cluster, and hydrogen and renewable energy. The AI data center and robotics manufacturing plant will be located in Block 7 of Saemangeum Industrial Complex No. 1.
It appears that the success or failure of building this industrial ecosystem will hinge on how effectively the region can leverage its physical AI research and demonstration infrastructure, as well as Hyundai Motor’s robotics production base, to drive the transition of existing manufacturing industries toward AI and robotics and attract related companies.
3. Hyundai Mobis Accelerates AI and Robotics Manufacturing Innovation… Unveils Over 40 New Technologies
- M-Sphere 2026 held… Ulsan plant showcases demonstration robots and AI digital twins
Hyundai Mobis has unveiled over 40 manufacturing innovation technologies utilizing artificial intelligence (AI), robotics, and digital twins, and is working with partner companies to expand the adoption of smart manufacturing technologies.
Hyundai Mobis announced on the 27th that it held the manufacturing innovation technology exhibition “M-Sphere 2026” for two days starting on the 26th at the Quantum Center near its Uiwang Research Institute in Gyeonggi Province.
Now in its second year, M-Sphere is an event where Hyundai Mobis shares the manufacturing technologies it has developed and case studies of their application on the production floor with customers and partners. This year’s event was held under the theme “Beyond Challenge, Into Reality,” and was attended by approximately 1,000 people, including representatives from first- and second-tier suppliers and group affiliates.
At this exhibition, Hyundai Mobis showcased over 40 new manufacturing technologies across three areas—intelligent automation, AI digital twins, and core technologies—including those jointly developed with partners. In particular, the company significantly expanded the number of proof-of-concept cases applied to actual production sites.
In the field of intelligent automation, the company unveiled a transport robot system utilizing a 3D vision system. This technology, which has been piloted at the Ulsan Chassis Module Plant, enables robots to autonomously locate and pick up parts needed for assembly, recognize their routes via camera, and transport them to the assembly line. Capable of transporting parts weighing up to 20 kg, the system reduces the burden on workers from carrying heavy loads and lowers the risk of safety accidents, while also improving parts supply accuracy and production efficiency.
In the field of AI digital twins, the company showcased a Physical AI-based robot teaching solution. This technology creates a virtual environment identical to an actual production line to train the movements of robotic arms and grippers; at the exhibition, it was demonstrated using a simulation of an airbag production site. Hyundai Mobis explained that even if equipment or products change, new task information can be taught to the robot within 2 to 4 hours.
Physical AI is a technology that Hyundai Mobis has recently been focusing on in the field of robotics. Following efforts in May to explore technical collaboration under the theme of “Robotics and Physical AI” in Silicon Valley, the company is expanding its development scope to include core components such as robot actuators, grippers, sensors, and controllers.
In the area of core technologies, the company introduced an automated fastening technology for battery module temperature sensors. Previously, workers had to manually connect the minute connectors, but by applying precision recognition and control technologies along with deep learning, the robot can now locate the component positions and fastening points to perform the task automatically. This method involves recognizing components from all four directions of up, down, left, and right, to ensure precise fastening, marking an example of how robotics has expanded its scope to include micro-component assembly processes that were previously difficult to automate.
Hyundai Mobis plans to expand the application of the technologies and smart manufacturing know-how unveiled at this event to its domestic and international production bases and partner companies. The goal is to enhance the competitiveness of the entire manufacturing ecosystem spanning automakers, parts suppliers, and equipment manufacturers beyond the automation of individual processes.
Ⅴ. BIO INDUSTRY TRENDS
1. CJ CheilJedang’s Bio-Based Material PHA Featured in Major U.S. Media
- AP and other outlets report or biodegradability and commercialization cases
- Competitiveness of bioplastic that degrades in soil and marine environments confirmed
- Pushing to expand applications from tableware to packaging materials
CJ CheilJedang’s biodegradable biomaterial PHA has been featured in major U.S. media outlets, highlighting its commercial viability.
CJ CheilJedang announced on the 21st that the characteristics and use cases of its PHA biomaterial were featured in major U.S. media outlets. The Associated Press (AP) covered PHA’s biodegradability and diverse applications in an article addressing solutions to microplastic pollution. This report was also carried by local media outlets such as The Washington Post, ABC News, and the Los Angeles Times.
PHA is a biomaterial produced by microorganisms through a fermentation process. This material degrades naturally in soil and marine environments. CJ CheilJedang is the only company in South Korea that mass-produces PHA.
CJ CheilJedang launched its “PHACT” brand in 2022. The company has applied PHA to cosmetic containers, shipping plastic packaging, artificial turf infill, straws, and sanitary wipes.
In 2022, the company introduced a cleansing balm container for the makeup brand “Vanilla Co,” and in 2024, it developed PHA-based plastic packaging and introduced it for products in Olive Young’s “Today’s Dream” same-day delivery service. Last year, the company partnered with BIQ Materials, a Swedish biomaterial compounding firm, to apply PHA as infill material for artificial turf on a portion of a soccer field in Sweden.
Starting this year, the company has been supplying PHA straws to domestic coffee shops such as Paul Bassett and major U.S. coffee chains. In February of this year, it partnered with Yuhan-Kimberly and Eugene Hanil Synthetics to launch the “Kleenex Biodegradable Disposable Wipes.” This product was developed using only biodegradable materials, which is a blend of PHA, PLA (polylactide), and pulp.
A CJ CheilJedang official stated, “PHA is gradually gaining attention as a material of the future due to its biodegradability and high versatility,” adding, “Through continuous R&D and external collaboration, we will introduce products incorporating PHA in an even wider range of fields.”
2. Alteogen to Build New Biopharmaceutical Production Plant… KRW 253.2 Billion Investment
Alteogen is investing 253.2 billion won to build its own biopharmaceutical production facility. The company plans to produce drug substances (DS) and drug products (DP) in-house for products such as the hyaluronidase “ALT-B4” and the Eylea biosimilar “ALT-L9,” which have previously been manufactured through contract manufacturing organizations (CMOs) both domestically and internationally.
Alteogen announced in a regulatory filing that it held a board of directors meeting on the 21st and decided to build a new biopharmaceutical production plant in the Dungok District of Daejeon Metropolitan City. The investment amount is 253.2 billion won, which represents 55.7% of the company’s equity of 454.4 billion won as of the 2025 consolidated financial statements.
The investment period runs from today through September 30, 2028. The investment funds will cover the costs of constructing the plant building and installing facilities and machinery. However, the company explained that the investment amount and completion schedule are subject to change depending on building permits and construction progress.
ARIBIO LAB Begins Full-Scale Development of Alzheimer’s Vaccine
ARIBIO LAB (261780) announced on the 21st that it is officially commencing the joint development of an Alzheimer’s disease vaccine with its affiliate, ARIBIO. Through this joint development, ARIBIO LAB plans to strengthen its position as a next-generation growth engine for the ARIBIO Group.
The two companies will combine ARIBIO’s experience in developing new Alzheimer’s drugs with ARIBIO LAB’s vaccine and immunology platforms to develop new candidate compounds.
Although global pharmaceutical companies have been attempting to develop an Alzheimer’s vaccine for over 20 years, no product has yet been commercialized. ARIBIO LAB is exploring an approach that not only removes key pathological proteins such as amyloid and tau but also regulates neuroinflammation involved in the progression of Alzheimer’s disease. Based on this, the company plans to proceed with the discovery and validation of candidate compounds in phases.
The joint development will leverage ARIBIO’s experience in Alzheimer’s drug development, accumulated through global clinical trials. ARIBIO has officially concluded the global Phase 3 clinical trial of its oral Alzheimer’s treatment, AR1001, conducted across 13 countries, and is currently conducting topline analysis. The company plans to apply the research experience and global clinical network accumulated during this process to the development of vaccine candidates as well.
ARIBIO LAB has been building its vaccine pipeline based on its proprietary immune-enhancing platforms, “L-pampo™” and “Lipo-pam™.” Its core pipeline candidate, the shingles vaccine “CVI-VZV-001,” recently completed the second dose administration of its Phase 2 clinical trial. The company plans to extend its clinical-stage vaccine development experience and immune platform technology to the field of Alzheimer’s disease.
3. SK Biopharm Bets KRW 1.1 Trillion… Signs Agreement to Acquire Epilepsy Drug Technology
- $400 million upfront payment… Largest-ever technology acquisition
- Clinical trials aimed at 2029 U.S. launch
- “To develop as a next-generation epilepsy drug”
SK Biopharm has signed a large-scale agreement to acquire a new drug candidate worth over 1 trillion won.
SK Biopharm announced on the 26th that it had signed an agreement with U.S.-based Biohaven Biosciences to secure a worldwide exclusive license for the epilepsy drug candidate “Opakalim (BHV-7000)” and other assets. The total value of the technology licensing agreement amounts to up to $795 million (approximately 1.1 trillion won). The upfront payment of $400 million marks the largest amount ever paid for a technology licensing-in deal in the South Korean pharmaceutical and biotech industry.
The contract term extends for 10 years following the product’s launch, or until the latest of the following dates: patent expiration or the expiration of the exclusive marketing rights. In addition to Opakalim, the scope of the agreement includes other potassium channel (Kv7) activator compounds and the Kv7 discovery platform. Following the product’s launch, separate running royalties will be paid based on net sales brackets. To ensure continuity in development, Biohaven will continue to conduct the ongoing global Phase 2 and 3 clinical trials, while SK Biopharm will bear the associated costs. Yu Changho, Head of Strategy at SK Biopharm, stated, “If the clinical trials are successful, we expect to launch the product in the U.S. market in 2029,” adding, “We also expect to be able to extend the patent term even after the U.S. patent expires in 2039 by utilizing the Patent Term Extension (PTE) system.”
This technology acquisition is part of a strategy to expand the epilepsy portfolio by adding a new drug with a different mechanism of action. SK Biopharm already holds “XCOPRI” (cenobamate), a new epilepsy drug it developed in-house. Unlike XCOPRI, which acts on sodium channels and gamma-aminobutyric acid (GABA) receptors, Opakalim works by activating Kv7 potassium channels. By also securing follow-on Kv7 compounds and a platform, the company has laid the groundwork not only for the introduction of a single candidate but also for the independent discovery of future new drugs.
In recent years, domestic pharmaceutical and biotech companies have been actively pursuing the acquisition of promising new drug candidates from overseas. Last year, Celltrion acquired “KG006” and “KG002”—an antibody pipeline for the treatment of autoimmune diseases currently in the preclinical stage—from U.S.-based Kaigene. The deal, which includes an upfront payment of $8 million, is valued at up to $744 million.
Last April, JW Pharmaceutical acquired the domestic development rights for “Bofangglutide,” a glucagon-like peptide (GLP)-1 class pipeline for obesity and diabetes, from China’s Gan&Lee Pharmaceuticals. The deal is valued at a total of $81 million, including an upfront payment of $5 million. Hanmi Pharmaceutical acquired the oral immuno-oncology drug “FLX475” from U.S.-based RAPT Therapeutics in 2019. The agreement covers commercialization rights in Korea and Greater China (China, Taiwan, and Hong Kong), with an upfront payment of $4 million and a potential total payment of up to $54 million.
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Korean Industrial Insight No.30 of AI, Semiconductors, Batteries, Electric vehicles, Robot, and Bio in chinese
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Korean IP News No. 152 in Chines
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