South Korea has outlined new funding proposals for three core Physical AI technologies as part of its Ultra-Innovative Economy initiative. The measures were presented at an emergency economic ministers’ meeting in Seoul on November 11, 2026, chaired by Finance Minister Lee Hyoung-il.
The proposed 2027 budget includes KRW 30 billion for core robot components, KRW 13.3 billion for humanoid batteries and KRW 9 billion for on-sensor AI semiconductors. Together, the three allocations amount to KRW 52.3 billion, approximately $39 million.
The actuator program is intended to improve the performance of components that power robotic joints. The government plans to invest KRW 100 billion over 2027–2029, targeting lighter, more durable actuators with approximately five times the force output at the same weight. Manufacturing-site demonstrations are planned to evaluate the components in humanoid robots. Domestic production is targeted for 2029, with an ambition to source 80% of core robot components domestically by 2030.
Battery development will cover improvements to existing commercial batteries and research into all-solid-state technologies. The objective is to enable eight hours of continuous humanoid operation while supporting brief periods of high power demand. The roadmap includes standards development in 2027, demonstrations in 2029 and commercialization targeted for 2030.
The sensor program will focus on chips capable of processing AI workloads at the sensor level, with applications in robotics, mobility and defense. A KRW 49.8 billion technology development program is planned for 2027–2030.
The three areas were selected for the broader initiative in July. The November announcement provides implementation details and proposed funding allocations. The government plans to convene industry task forces before the end of 2026 to coordinate support measures. The 2027 allocations remain budget proposals rather than confirmed disbursements.
Sources: Yonhap News Agency
