So, just exactly what are Korea’s fears?

How about a looming crisis in robotics?
The rapid rise of Chinese and Japanese competitors, armed with aggressive pricing strategies and advanced manufacturing capabilities, has left Korean firms struggling to maintain their foothold in both domestic and global markets. Industry leaders warn that without immediate intervention, Korea’s robotics sector could be pushed to the brink of collapse within the next decade.

Korean robotics firms are being squeezed from two directions: high-end Japanese robots produced at lower costs in China and ultra-cheap Chinese-made alternatives. Chinese manufacturers, backed by state subsidies and a vast domestic market, have slashed prices to levels Korean firms cannot match. Meanwhile, Japanese giants like FANUC and Yaskawa have moved production to China, allowing them to undercut Korean prices by 30-40%.

In 2024, China accounted for 80.5% of Korea’s industrial robot imports, up from just 27.3% in 2018. This flood of low-cost robots has forced Korean firms like Hyundai Robotics and Yuil Robotics to file anti-dumping complaints, but many fear it may be too late to reverse the trend.

2025 reprise of The Miracle on the Han River
Theodore Roosevelt famously said, “Nothing worth having comes easy”. Korea, more than many other nations, understands that as part of its national character.

Korea has faced looming crises and disaster scenarios before and prevailed, but not without  some wrenching agony. In fact, modern Korea was born from the disaster of 38 years of occupation and a Second World War that didn’t end for Korea until 1955. Even as late as 1960, Korea was poorer than countries in sub-Saharan Africa.  

Korea in 1961 was in sorry condition. “Korea was by all standards a failed state after the Korean War (1950-53). GDP per capita in South Korea in early 1960’s was below $100. Lower than Haiti, Ethiopia or Yemen, making South Korea one of the poorest countries in the world.

Korea needed something, and that something came in the form of Park Chung-Hee, and his first Five-Year Plan called “The Big Push”.

That was the impetus to Korea’s rise as an industrial and technology powerhouse. A spectacular feat that is today loosely referred to as The Miracle on the Han River.

Okay, so there’s overwhelming price competition from China and Japan. What else?

How about loss of market share in core industries
Korea’s robotics sector has stagnated at $3.5 billion in annual sales since 2017, while China and Japan continue expanding. Even Korean automakers—traditionally loyal to domestic suppliers—are increasingly turning to foreign robots. For example, a major Korean car manufacturer recently chose FANUC and China-owned KUKA over local suppliers due to cost advantages.

Then too, how about falling behind in next-gen robotics (AI & humanoids)?
While Korea excels in industrial robotics, it lags in AI-integrated robots and humanoids, which are expected to dominate future markets. Chinese firms like Unitree Robotics already sell humanoids for $16,000, far below global competitors. Meanwhile, U.S. companies (Tesla, Boston Dynamics) lead in advanced AI robotics, leaving Korea with only Rainbow Robotics as a notable player in humanoids.

Then there’s, worse news still.  China’s rapid advancements in Generative AI (GenAI)—holding 70% of global patents—mean that Chinese robots will soon combine cheap prices with AI-driven intelligence, making them even more formidable.