Korea has launched a real-world AI test platform to help factories use smart technology on their production floors

Jan 28, 2026- by CMI| Category : Industrial Automation and Machinery1 min read
Korea has launched a real-world AI test platform to help factories use smart technology on their production floors

South Korea has opened a new "physical AI" lab to speed up the use of artificial intelligence in manufacturing. The lab, located at Jeonbuk National University, aims to help factories improve by using smart technology, especially in the car industry.

The government wants to create "AI factories" where robots and smart software work together on production lines. They plan to invest around 2 trillion won (about USD 1.5 billion) in AI-driven manufacturing projects between 2026 and 2030, focusing on areas like Jeonbuk as well as South Gyeongsang provinces.

A separate AI research project, funded with 76.7 billion won, will develop software that lets robots work together, share tasks, and adjust to changes in the factory. Big companies like Hyundai, SK Telecom, Naver Cloud, and Rebellions are expected to take part in this effort.

Unlike traditional industrial automation, the Jeonbuk lab will focus on testing AI systems in real factories, not just simulations, to ensure they improve productivity in local manufacturing.

Early tests have already shown positive results. Companies making car parts reported up to 11.4% more productivity, 10% faster processing times, and cost savings of up to 80%, even during the test phase.

The lab allows testing in areas like assembly, inspection, labeling, and flexible production, so researchers can test both experimental setups and real-world production situations. Companies like DH Autolead, Daeseung Precision, and Donghae Metal have used physical AI in parts like steering systems, brakes, and car body welding.

Officials believe this project could help South Korea lead the world in "manufacturing AI," an area where most software comes from other countries.

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