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SEOUL – As the wave of Physical Artificial Intelligence (AI) and AI Transformation (AX) sweeps through the domestic manufacturing sector, the demand for 5G specialized networks—private 5G infrastructures tailored for specific sites—is witnessing an unprecedented surge. This infrastructure, once the domain of tech giants, is now becoming a survival requisite for small and medium-sized enterprises (SMEs), signaling a rapid shift toward autonomous manufacturing.

A Rapid Expansion Beyond Targets
According to the Ministry of Science and ICT (MSIT) on March 15, the momentum for 5G specialized networks has accelerated significantly in early 2026. Following the recent deployment by companies such as Wizcore and Navel across four new facilities, the first quarter is expected to see nearly ten new sites authorized for operation.

This brisk pace puts the South Korean government's annual goal of 120 sites well within reach much earlier than anticipated. From a humble beginning of 26 sites in 2022, the cumulative number of installations surpassed the 100-mark last year, reaching 104 sites, and is now poised for an exponential leap.

The Backbone of Physical AI and Smart Factories
The primary driver behind this trend is the evolution of the "Smart Factory." As manufacturing plants transition into autonomous hubs, they require the real-time collection of vast amounts of data via Internet of Things (IoT) sensors and the seamless operation of autonomous mobile robots (AMRs)—often referred to as Physical AI.

A 5G specialized network provides the necessary stability, capable of supporting thousands of simultaneous device connections within a single facility while maintaining ultra-low latency of around 10ms (0.01 seconds). "For both large-scale operations and SMEs, 5G specialized networks have emerged as a critical infrastructure directly linked to competitiveness and survival," said Choi Chul-ho, Chairman of the Korea Industrial Complex Management Association.

From Tech Giants to Industrial Complexes
While early adopters included industry leaders like Naver Cloud, Samsung Electronics, Hyundai Motor, and SK Hynix, the technology is now permeating the broader manufacturing ecosystem. The Korea Industrial Complex Corp (KICOX) has announced a strategic plan to invest up to 25.5 billion KRW over three years through 2028 to integrate 5G specialized networks into major industrial complexes.

Given that these complexes house thousands—and in some cases, tens of thousands—of individual companies, the number of specialized network sites is projected to double or triple by next year as the infrastructure becomes accessible to resident SMEs.

Government Policy and Global Ambitions
In response to this growing demand, the South Korean government plans to unveil a comprehensive "5G Specialized Network Activation Plan" next month. Furthermore, the National Information Society Agency (NIA) is set to support the export of domestic 5G equipment for the first time this year, leveraging verification projects based on Open RAN (Open Radio Access Network) technology.

Experts suggest that if the current trajectory continues, South Korea will not only solidify its position as a leader in AI-driven manufacturing but also create a robust export market for the underlying telecommunications hardware and software.

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