Korea’s moment to lead physical AI

Artificial intelligence, once confined to computers and smartphones, is now moving into factories and homes with physical bodies in the form of robots, signaling the arrival of the era of “physical AI.” On Jan. 5, Nvidia CEO Jensen Huang unveiled an autonomous driving platform and said a “ChatGPT moment” had arrived for physical AI, including robotics. A year earlier, he described physical AI as the next wave following generative AI. He now argues that it is no longer a distant possibility but an immediate reality. For South Korea, which aims to join the world’s top three AI powers, the next competitive frontier is already taking shape.

Physical AI is also the central theme of CES 2026, the world’s largest consumer electronics and information technology exhibition, which opened Jan. 6 in Las Vegas. Humanoid robots powered by AI systems and autonomous vehicles drew particular attention. Korean companies showcased a wide range of robotic workers to demonstrate their technological capabilities. Hyundai Motor Group presented its humanoid robot Atlas, which can freely move its full-body joints and sense touch, positioning it as a direct challenger to Tesla’s Optimus. LG Electronics unveiled a household robot called Qloyde, designed to perform domestic tasks such as folding laundry with humanlike precision. Samsung Electronics demonstrated everyday scenarios in which AI-powered refrigerators and washing machines recognize user needs and operate like personal assistants.

The impact of artificial intelligence moving beyond the digital realm into the physical world could be profound. Some forecasts put the long-term market potential at as much as $50 trillion. South Korea, in particular, has strong potential to lead the physical AI sector. With 1,012 industrial robots per 10,000 workers, the country has built the world’s most extensive industrial robot infrastructure. It also boasts a broad manufacturing ecosystem that spans semiconductors, automobiles, steel and shipbuilding, giving it a clear advantage in securing the high-quality data needed to train physical AI systems. During a visit to South Korea last year, Nvidia CEO Jensen Huang described the country as “one of the rare nations that possesses software, manufacturing and AI technology.”

The government has set equally ambitious goals. In its economic growth strategy announced last year, it declared that in physical AI, South Korea should aim not for third place but for first. Potential alone, however, does not guarantee success. Bold investment is needed to accelerate the AI-driven transformation of manufacturing, and regulations that hinder real-world testing of autonomous humanoid robots must be reformed. South Korea must not miss the chance to narrow its gap with the United States and China in generative AI by establishing leadership in physical AI.