South Korea’s Ministry of Trade, Industry and Energy has announced plans to invest 480 billion won (about US$349 million) in artificial intelligence projects in 2025, with a sharp focus on industrial innovation.

The funding will support the development of AI-powered factories, advanced AI chips, and autonomous vehicle technologies. Key allocations include 62.7 billion won (US$45.5 million) for AI-driven factories, 21.6 billion won (US$15.7 million) for chip development and 120.6 billion won (US$87.6 million) for self-driving car initiatives.

Additional funding will target AI applications in biotechnology (68 billion won), intelligent robotics (29.6 billion won) and display technologies (13.8 billion won). The ministry also aims to develop foundational AI models tailored for small and medium-sized enterprises to enhance manufacturing quality and efficiency.

As the world’s fourth-largest manufacturing hub, South Korea sees industrial AI as a strategic lever for global competitiveness and has pledged continued investment to cement its leadership in the field.