South Korea to Launch 500 AI-Powered Factories.

The Ministry of Trade, Industry, and Energy announced a bold economic blueprint on February 6, 2026, aimed at embedding artificial intelligence directly into the nation's industrial heart. The centerpiece of this plan is the creation of 500 fully AI-integrated factories by 2030, a move designed to transform South Korea into the world’s leading test bed for Physical AI the application of intelligence to large-scale manufacturing.To fund this transition, the government has designated the National Growth Fund as a primary financing vehicle, valued at approximately KRW 150 trillion. The strategy focuses on assisting small and medium enterprises in adopting AI-enabled sensors and robotics, ensuring that the entire supply chain remains competitive. Experts suggest this gamble aims to differentiate the nation from regional rivals by focusing on trusted, high-reliability production rather than just software development.

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