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South Korea to back physical AI commercialisation via National Growth Fund, expand long-term investment

South Korea plans a support system linking physical AI technology development, on-site demonstrations and private investment, using fiscal spending and the National Growth Fund. The government set next year’s physical AI budget at 3.1 trillion won, more than triple this year’s 900 billion won. The Financial Services Commission will expand long-term investment and offer funding via direct and indirect investment, infrastructure finance and ultra-low-interest loans. Ministries also outlined new projects for core technology, logistics trials, training infrastructure, manufacturing adoption and sector-specific pilots.