KAIST

KAIST (President Kwang Hyung Lee) announced on the 28th of August that, together with Jeonbuk State, Jeonbuk National University, and Sungkyunkwan University, it has jointly won the Ministry of Science and ICT’s pilot project for the “Physical AI Core Technology Proof of Concept (PoC)”, with KAIST serving as the overall research lead. The consortium also plans to participate in a full-scale demonstration project that is expected to reach a total scale of 1 trillion KRW in the future.

< General Project Director Professor Young Jae Jang from the Department of Industrial and Systems Engineering >

In this project, KAIST led the research planning under the theme of “Collaborative Intelligence Physical AI.” Based on this, Jeonbuk National University and Jeonbuk State will carry out joint research and establish a collaborative intelligence physical AI industrial ecosystem within the province. The pilot project will begin on September 1 this year and will run until the end of the year over the next five years. Through this effort, Jeonbuk State aims to be built into a global hub for physical AI.

KAIST will take charge of developing original research technologies, creating a research environment through the establishment of a testbed, and promoting industrial diffusion. Professor Young Jae Jang of the Department of Industrial and Systems Engineering at KAIST, who is the overall project director, has been leading research on collaborative intelligence physical AI since 2016. His “Collaborative Intelligence-Based Smart Manufacturing Innovation Technology” was selected as one of KAIST’s “Top 10 Research Achievements” in 2019.

“Physical AI” refers to cutting-edge artificial intelligence technology that enables physical devices such as robots, autonomous vehicles, and factory automation equipment to perform tasks without human instruction by understanding spatiotemporal concepts.

< Figure 1. Structure for learning future manufacturing data by linking reinforcement learning and simulations >

In particular, collaborative intelligence physical AI is a technology in which numerous robots and automated devices in a factory environment work together to achieve goals. It is attracting attention as a key foundation for realizing “dark factories” in industries such as semiconductors, secondary batteries, and automobile manufacturing.

Unlike existing manufacturing AI, this technology does not necessarily require massive amounts of historical data. Through real-time, simulation-based learning, it can quickly adapt even to manufacturing environments with frequent changes and has been deemed a next-generation technology that overcomes the limitations of data dependency.

Currently, the global AI industry is led by LLMs that simulate linguistic intelligence. However, physical AI must go beyond linguistic intelligence to include spatial intelligence and virtual environment learning, requiring the organic integration of hardware such as robots, sensors, and motors with software. As a manufacturing powerhouse, Korea is well-positioned to build such an ecosystem and seize the opportunity to lead global competition.

< Figure 2. Example of applying Physical AI in a semiconductor logistics robot operating system >

In fact, in April 2025, KAIST won first place at INFORMS (Institute for Operations Research and the Management Sciences), the world’s largest industrial engineering society, with its case study on collaborative intelligence physical AI, beating MIT and Amazon. This achievement is recognized as proof of Korea’s global competitiveness in the physical AI technology realm.

Professor Young Jae Jang, KAIST’s overall project director, said, “Winning this large-scale national project is the result of KAIST’s collaborative intelligence physical AI research capabilities accumulated over the past decade being recognized both domestically and internationally. This will be a turning point for establishing Korea’s manufacturing industry as a global leading ‘Physical AI Manufacturing Innovation Model.’”

KAIST President Kwang Hyung Lee emphasized that “KAIST is taking on the role of leading not only academic research but also the practical industrialization of national strategic technologies. Building on this achievement, we will collaborate with Jeonbuk National University and Jeonbuk State to develop Korea into a world-class hub for physical AI innovation.”

Through this project, KAIST, Jeonbuk National University, and Jeonbuk State plan to develop Korea into a global industrial hub for physical AI.