South Korea's Industrial AI Sector Bolstered by Inaugural EXPO

The first-ever Industrial AI EXPO 2025 concluded its three-day run in Seoul on September 5, positioning itself as a pivotal platform for accelerating the integration of artificial intelligence across South Korea's diverse industrial sectors. The event, held at the COEX Magok Convention Center, drew participation from 133 companies across 320 booths, unveiling a comprehensive array of industrial AI equipment and innovative solutions.

Key Developments and Exhibitor Showcases

High-level activities marked the expo's opening, including a memorandum of understanding (MOU) focused on establishing a data-sharing ecosystem for the manufacturing industry. A Minister of Trade, Industry and Energy Award ceremony also recognized 25 entities for their contributions to industrial digital transformation and AI utilization. Industry leaders from companies such as HD Hyundai, LG CNS, Microsoft Korea, Dassault Systèmes, HP Korea, and Salesforce, alongside major domestic institutions, attended, underscoring a collective commitment to advancing industrial AI capabilities.

The expo highlighted 12 critical industrial AI task areas, spanning market forecasting, supply chain optimization, process control, predictive maintenance, safety protocols, workforce training, and cybersecurity. Exhibitors demonstrated practical applications designed to enhance efficiency and resilience. Notably, HD Hyundai presented successful AI adoption cases within its shipbuilding and construction equipment divisions, while also debuting its overarching AIX (AI Transformation) strategy. The event also marked the first public appearances of advanced robotics, on-device AI, and physical AI technologies, signaling the next evolutionary phase of industrial automation.

Global technology firms, including Microsoft, Dassault Systèmes, HP, and Salesforce, collaborated with Korean partners to showcase AI-driven innovations. NVIDIA, partnering with Leaders Systems, also presented its contributions, expanding both domestic business-to-business pipelines and international collaboration prospects. Complementing the exhibition, a series of programs, including the Industrial AI Conference, AI-Tech Seminars, and 1:1 Business Matching sessions, were conducted to foster a robust industrial AI ecosystem.

Strategic Government Investment Drives AI Adoption

South Korea's government is actively driving the expansion of industrial AI through substantial financial commitments. The Ministry of Trade, Industry and Energy has announced plans to invest 480 billion won (approximately US$349 million) in AI projects for 2025, with a pronounced focus on industrial innovation. This funding is strategically allocated, including 62.7 billion won (US$45.5 million) for AI-driven factories, 21.6 billion won (US$15.7 million) for advanced chip development, and 120.6 billion won (US$87.6 million) for autonomous vehicle initiatives. Further investments are designated for biotechnology (68 billion won), intelligent robotics (29.6 billion won), and display technologies (13.8 billion won).

These targeted investments are part of a broader national strategy, evidenced by a ₩100 trillion ($71.56 billion) National Growth Fund and a record-setting KRW 24.8 trillion R&D budget for 2025. As the world's fourth-largest manufacturing hub, South Korea views industrial AI as a critical strategic lever for maintaining global competitiveness and has pledged continuous investment to solidify its leadership in this domain.

Broad Market Implications and Technology Trends

The burgeoning industrial AI sector in South Korea is set against a backdrop of significant market expansion. The nation's AI market is projected to grow from $4.03 billion in 2025 to $16.33 billion by 2031, driven by government investments in high-performance computing and AI semiconductors. The Lee Jae Myung administration's Five-Year State Administration Plan aims to position South Korea among the top three global AI powers by 2028, with a specific emphasis on next-generation AI chips and core algorithm development.

Globally, the robotics industry is experiencing a substantial investment boom, with over $2.26 billion in global robotics funding raised in Q1 2025 alone. This capital is increasingly being directed towards AI-powered robotics platforms, with specialized startups accounting for over 70% of this Q1 funding. AI-native platforms are commanding premium valuations, exemplified by early-stage AI robotics companies raising at median revenue multiples of 39.0x in recent Series A and B rounds. Notable funding rounds include Figure AI securing $675 million for humanoid robots and Neura Robotics raising €120 million for cognitive robots, with companies like Figure AI and 1X Technologies backed by prominent investors including OpenAI, Jeff Bezos, and NVIDIA.

NVIDIA Corporation (NASDAQ: NVDA) continues to assert its market dominance in the artificial intelligence semiconductor sector, maintaining an estimated 70-95% market share, and specifically 92-94% for data center GPUs as of Q1 2025. Analysts forecast NVIDIA to achieve $206 billion in revenue for fiscal year 2026, representing a substantial 58% increase from the previous year, with earnings per share projected to grow at a compound annual rate of nearly 35% through fiscal years 2025-2028. The company's strategic importance was further highlighted by its recent $5 billion stake in Intel for co-developing data center and PC chips, and a $2 billion deal with the United Kingdom to expand its AI startup ecosystem.

Expert Perspectives on Industrial Transformation

The positive sentiment surrounding the expo's impact was articulated by industry leaders.

"As the country's first vertical AI exhibition, Industrial AI EXPO presented a wealth of successful application cases. By serving as a matching platform between supply and demand, the expo will accelerate the adoption of AI across industries, strengthen Korea's industrial AI ecosystem, and enhance global competitiveness."

This statement from Lee Gil-seon, Executive Managing Director of the Korea Smart Manufacturing Industry Association, underscores the expo's role as a catalyst for growth and collaboration within the industrial AI domain.

Outlook: Sustained Growth and Innovation in the AI Landscape

The successful conclusion of the Industrial AI EXPO 2025, coupled with robust government investment and a dynamic global landscape for AI and robotics, positions South Korea's industrial sectors for sustained growth and innovation. The continued emphasis on foundational AI models for small and medium-sized enterprises (SMEs) and the strategic allocation of resources into AI-driven factories, advanced chips, and intelligent robotics are expected to drive efficiency improvements and foster new industrial capabilities. The ongoing evolution of technologies such as on-device AI and physical AI, alongside the increasing integration of computer vision, reinforcement learning, and large language models into robotic workflows, suggests a future marked by deeper automation and enhanced productivity across the manufacturing landscape. Market participants will closely monitor subsequent government policy announcements, corporate investment trends, and technological breakthroughs as South Korea aims to solidify its position as a global leader in industrial AI.