Robotics as a way of life for Korea
Korea Gets Serious About Robotics
“The government plans to invest $2.3 billion by 2030 to expand the robotics industry to a globally competitive level,” about $329 million annually from 2024-2030
WHY? “…to relieve labor shortages in the country with the world’s lowest birth rate.”
Korean Ministry of Trade, Industry and Energy
Robotics as a way of life for Korea
Korea’s MOTIE or Ministry of Trade, Industry and Energy, which is the ministry that regulates economic policy regarding the industrial and energy sectors, just got very serious about robotics and its value to Korea and the country’s future.
MOTIE announced a comprehensive strategy to develop the country’s robotics industry.
For a bit of perspective as to how far Korea is pledging to reach, a look at Japan tells the tale. Korea’s robot exports are forecast to grow to $3.9 billion by 2030 from $850 million in 2021. By comparison, the export value of world leader Japan’s robotics exports is $3.8 billion [2022] out of a total production value of all robotics of $7.1 billion (Japan produces 45% of the world’s robots). Accordingly, Korea is shooting for its robotics exports in 2030 to be about equal to those of Japan from 2022). In short, a big stretch for Korea but one that the country’s leadership claims must be undertaken now.
Worldwide, with robotics, logistics, and overall industrial automation still in their infancy, but mature enough to take on the challenge, Korea’s decision to undertake “a comprehensive strategy to develop the country’s robotics industry” seems well-timed.
One thing for sure, with artificial intelligence (AI) just beginning to converge with robotics (and Korea strongly positioned in AI), the strategy, could herald a golden age for Korean robotics.
The strategy
It’s a strategic plan and extremely important because it signals a significant shift in South Korea’s industrial focus. To say the least, Korea’s economy is non-trivial at $1.6 trillion (13th largest in the world) which is led by such sectors as world-famous brands in electronics, telecommunications, automobile production, chemicals, shipbuilding, and steel.
To be sure, Korea is asking a lot of robotics, but since it has so much to lose if it doesn’t, such dependence on robotics might well be its only alternative. Korea is the first country in the world to put so much dependence on robotics for providing an escape valve and economic way forward.
“The country aims to increase productivity and address demographic changes by capitalizing on the robotics sector, setting a precedent for future technological and economic development.”
Bang Moon Kyu [Korea’s industry minister] emphasized the government’s commitment to promoting the K-robot [Korea-robot] economy as a central component of Korea’s future economic growth.
“The government plans to invest $2.3 billion by 2030 to expand the robotics industry to a globally competitive level,” about $329 million annually from 2024-2030.
Nearby China, similarly facing its own demographic challenge and labor shortage, is looking to become the first of the fast-aging industrialized nations to transform a severe onrushing demographic decline into what’s being called “a robot dividend”. Basically, like Korea, looking to robots to save the day. The U.S. and Germany escaped because of immigration.
See related:
China’s “Robot Dividend” Has Three Faces
Will China become the first of the fast-aging industrialized nations to transform a severe onrushing demographic decline into a robot dividend?
InvestKOREA
Here’s how Invest Korea (Invest KOREA promotes Korea’s investment environment abroad and provides comprehensive services to foreign companies) positions the country’s undertaking:
“The robotics industry is a new growth engine that will accelerate the digital transformation of society in the face of the 4th industrial revolution. Robots have been recognized and utilized as a means to: respond to changing population structure such as low birth rate and population aging; innovate industries; improve productivity; and enhance the quality of life including improving the living environment of socially vulnerable groups such as the disabled and elderly.
“Faced with a tipping point of rapid changes across the society and economy brought about by COVID-19, robots are expected to be utilized and widely distributed as a key driver in the contactless economy.
“The Korean robotics industry has been growing at an annual average rate of 4.5 percent in the past five years. Manufacturing robots account for 52.4 percent of the Korean robot market, leading the market growth.
“In the past, the center of gravity in the Korean robotics industry relied mainly on manufacturing robots. However, the size of the service robot market has been on the rise, with large Korean conglomerates scaling up the robot business and entering the market in earnest through M&A and the establishment of subsidiaries.
“The comprehensive technological competitiveness of the Korean robot was ranked 4th (2018 technology evaluation, KISTEP), with some robot applications and service technologies being highly regarded. In addition, government-led R&D investment is underway mainly due to the country’s SME-oriented industrial structure.”
Next steps
According to MOTIE, Korea’s next steps will look like these:
- To train more than 15,000 professionals and support more than 30 indigenous robotics companies.
- To invest $2.3 billion by 2030 to advance eight key technologies in robotics: servomotors, reducers, sensors, grippers, controllers, autonomous movement software, autonomous operation software, and human-robot interaction.
- To deploy: “One million robots will likely be deployed in various sectors from manufacturing to agriculture, logistics, services, national defense, social safety and medical care in the country by 2030.”
- To support Korean robotics companies endeavoring to enter global markets.
- To invest $ 154 million for a national robotics testbed to ensure safety and reliability standards (to be built in Daegu City; see our coverage on this new Technopolis: The Rise of Daegu City).
See related:
The Rise of Daegu City
Korea’s Newest Innovation Hub & Asia’s Next Robotics Technopolis
And finally, robotics will need the determined and ongoing support from the Korean government.
Minister Bang Moon Kyu emphasized the government’s commitment to promoting the “K-robot economy” as a central component of Korea’s future economic growth.
See related:
Major Growth Spurt Ahead for Korean Robotics
2023-2026 Korea could leapfrog competition through integration of robotics, AI/ML, and ICT