Gyeongsangbuk-do is stepping up its efforts to foster the region as a core domestic hub for the Physical AI industry by combining artificial intelligence (AI) and robotics technologies with its manufacturing foundation, including semiconductors, steel, and auto parts.

At the "Physical AI Regional Hub Development Forum" held at the Korea Development Bank headquarters on September 22, the province presented its vision, "Gyeongsangbuk-do as the Standard for South Korea's Physical AI Industrialization (P.AX Gyeongsangbuk-do)," and established a foundation for cooperation with Jeonbuk, Gyeongnam, policy financial institutions, and regional banks.

The province announced a Physical AI development strategy linked with the government's "Three Mega-Projects for South Korea's Great Leap Forward" and signed business agreements with Gyeongnam, Jeonbuk, policy financial institutions, and regional banks.

Under the agreement, participating organizations will cooperate in discovering Physical AI-related companies and projects, attracting businesses, building industrial infrastructure, and providing financial support. Gyeongsangbuk-do will utilize its accumulated manufacturing capabilities—such as semiconductors and electronics in Gumi, steel in Pohang, and auto parts and machinery in Gyeongju, Gyeongsan, and Yeongcheon—for the demonstration and diffusion of Physical AI technologies.

The region-specific Physical AI ecosystem will be built around four main pillars: field technology verification (VERIFY), internalization of core technologies and supply chains (LOCALIZE), AI transformation of traditional manufacturing (TRANSFORM), and diffusion of demonstration results (SCALE-UP). The province plans to verify technologies in manufacturing sites, establish testing, inspection, certification, safety, and security support systems, and build core component, module, and system supply chains to support corporate technology development and commercialization.

It will also pursue technological self-reliance for AI robot core technologies, parts, and software, including humanoids. By creating production infrastructure linking demonstration, learning, and mass production, the province plans to simultaneously promote supply chain transitions for regional companies, attract promising enterprises, expand manufacturing AX projects, and train specialized personnel.

Gyeongsangbuk-do aims to expand the Physical AI industrial ecosystem step-by-step with clear targets: developing 80 types of new core component and software products, nurturing 150 supply-chain-transition companies, executing 230 manufacturing AX projects, and training 3,000 robotics specialists.

Gyeongsangbuk-do Governor Lee Cheol-woo stated, "Physical AI is a crucial opportunity that will lead a new leap forward for South Korea's manufacturing industry," adding, "Gyeongscangbuk-do will take the lead in enhancing the competitiveness of South Korea's Physical AI industry by grafting AI and robot technologies onto our manufacturing foundation in semiconductors, steel, and auto parts."

He further noted, "The government, financial institutions, companies, and regions must cooperate closely so that technological development goes beyond theory and leads directly to field verification and corporate investment and production," expressing his expectation that "this forum will serve as a starting point to secure new growth engines for regional manufacturing."

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