The Rise of Physical AI in Korea: Beyond LLMs

The focus of artificial intelligence is shifting from the digital realm of large language models toward Physical AI, a field dedicated to translating intelligence into physical automation. Unlike clerical AI, Physical AI systems are designed to perceive, learn and adapt to unstructured environments to achieve high-precision results, such as 0.1 mm precision.

Industry leaders in South Korea have indicated that the deployment of Physical AI is in its early stages and that data collection is a critical component of the transition. This shift represents a departure from the development of large language models, focusing instead on how AI operates within machines, factories, and cities.

South Korea’s Industrial Strategy and Global Alliance

South Korea is leveraging its existing strength in hardware, industrial systems, and components to compete in the Physical AI sector. In September 2025, the South Korean government launched the Physical AI Global Alliance, an initiative involving more than 250 companies to develop world models that allow AI to understand physical laws, such as gravity, and interact with unfamiliar objects.

The country’s strategy relies heavily on its semiconductor and robotics infrastructure. This includes the development of advanced packaging, digital twins, and specialized memory solutions designed to support the high demands of physical automation.

Semiconductor Infrastructure for Inference

As AI systems become more context-aware, memory requirements are evolving to support inference-focused workloads. Samsung Electronics and SK hynix are utilizing stacked NAND flash to develop High Bandwidth Flash (HBF), which provides large storage capacity at a lower cost for intermediate data in AI servers.

To address the energy consumption associated with moving data, Samsung Electronics has introduced Processing-in-Memory (PiM) technology. This architecture allows computation to occur directly inside the memory, with variants including HBM-PIM, AXDIMM, and LPDDR-PIM.

Robotics and Automation Implementation

Neuromeka has transitioned from a collaborative robot manufacturer to a Physical AI Robot Automation Company. The company is implementing a Robot-as-a-Service (RaaS) model and a Robot Platform Foundry Service to provide the hardware and data infrastructure necessary for various industries to deploy Physical AI.

To support this ecosystem, Neuromeka is establishing the Physical AI Global Cluster in Pohang, South Korea, which integrates a robot platform foundry with a large-scale data center and data factory.

Our strength lies in the complete ecosystem. By establishing the Physical AI Global Cluster in Pohang, South Korea, we are integrating a large-scale data factory and center with a robot platform foundry. We aren’t just building robot arms; we are providing the ‘brain’ and the ‘factory’ for the future of automation.

Dr. Jonghoon Park, CEO of Neuromeka

One practical application of this technology is autonomous ship welding, a task that requires responding to non-standardized environments rather than simple repetition. Neuromeka developed a solution for this using the Opti3 robotic arm combined with sensory and vision software.

Current Market Adoption

Despite the strategic interest, widespread integration of Physical AI remains limited. According to a report from March 18, 2026, most companies are still in the early stages of adoption. While 41% of firms expect the technology to bring change, only 5% report a measurable impact and only 3% have fully integrated Physical AI into their operations.