(Seoul = Yonhap News) Reporter Han Sang-gyun – Deputy Prime Minister and Minister of Science and ICT Bae Kyung-hoon announces support measures for 'AI Data Centers and Physical AI' during the National Fiscal Strategy Meeting presided over by President Lee Jae-myung at Cheong Wa Dae on the 13th. 2026.7.13 xyz@yna.co.kr

According to Yonhap News,

(Seoul = Yonhap News) Reporter Kwon Ha-young – The government plans to establish a Future Response Fund utilizing a record-high tax revenue expected in 2027, concentrating financial investments on three major mega-projects, including artificial intelligence (AI).

Bae Kyung-hoon, Deputy Prime Minister and Minister of Science and ICT, highlighted physical AI as the next-generation national growth engine, stating, "Based on a domestically developed physical AI full-stack platform, we will export South Korea's factories to the world."

During the '2026 National Fiscal Strategy Meeting' presided over by President Lee Jae-myung at the Cheong Wa Dae Yeongbingwan (State Guest House) on the 13th, Deputy Prime Minister Bae remarked, "Now that the competition to secure universal physical AI platforms has begun in earnest, it is the golden time to concentrate our national capabilities."

According to the government, national tax revenue in 2027 is projected to exceed KRW 500 trillion, far surpassing the previous forecast of KRW 412 trillion.

The government intends to use these resources to create the Future Response Fund, concentrating investments in four core areas: the youth generation, growth engines, regional development, and human resources. Concurrently, it plans to allocate finances with top priority to three mega-projects: semiconductors, AI data centers (AIDC), and physical AI.

[Fostering AI Data Centers as a National Strategic Industry… Supporting KRW 550 Trillion in Private Investment]
Regarding AIDCs, Deputy Prime Minister Bae explained, "While they are facilities where AI semiconductors, power, and cooling solutions are integrated, essentially, they are spaces where AI models operate." He added, "They are the core infrastructure that generates production tokens to enhance the performance of AI services."

The Ministry of Science and ICT previously announced at a public briefing on the three mega-projects that it would secure AIDC investments on a scale of 8.4 gigawatts (GW) by 2029 and 18.4 GW by 2035. Currently, projects in Sejong, Donghae, and Ulsan are confirmed and underway, and three to four additional candidate sites are under review.

Deputy Prime Minister Bae noted that constructing a 1 GW AIDC requires a site of over 300,000 pyeong (approximately the size of 140 football fields) alongside a stable power infrastructure. "Through a pan-governmental comprehensive support task force (TF), we will provide full support for securing sites, power supply, and licensing," he stated.

Using this as a stepping stone, the government envisions localizing core technologies such as AI semiconductors, cloud computing, and cooling and power solutions, developing them into a robust export industry. It will also establish the 'AI Data Center Alliance,' an industry-academia-research cooperation system, while concurrently preparing a large-scale demonstration testbed and providing a comprehensive support package encompassing workforce, taxation, and funding.

["Physical AI Market Valued at KRW 80 Quadrillion"… Independent Construction of a Domestic Full-Stack Platform]
The growth potential of the physical AI market is also drawing significant attention. Deputy Prime Minister Bae noted, "According to Morgan Stanley, the potential market for physical AI is USD 60 trillion, or about KRW 80 quadrillion, which is roughly equivalent to half of the current global gross domestic product (GDP)."

He emphasized that physical AI will expand beyond manufacturing robots into national defense, logistics, and agriculture, as well as everyday life applications such as caregiving and household chores. "The country that preempts the universal platform will lead future industrial competitiveness," he stressed.

Starting this year, the government plans to promote the development of 'World Models,' an original technology for mass-producing high-quality synthetic data. Through industry-academia-research R&D in Jeonbuk and Gyeongnam, it aims to complete a universal physical AI foundation model, integrating it with AI semiconductors and robotic devices to foster an export-driven industry.

Deputy Prime Minister Bae concluded, "By fully operating three public-private cooperation systems—the pan-governmental TF, the AI Data Center Alliance, and a dedicated support group for resolving corporate difficulties—the government and the private sector will work as one team to execute these mega-projects without a hitch."

kwonhy@yna.co.kr



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Source Text

Source: Yonhap News (July 13, 2026)

** This article was translated from Korean.