S. Korea pledges ₩300 billion to boost AI and green industrial transformation
Synopsis
South Korea is putting $203.6 million behind a structural overhaul of its industrial complexes, betting that AI and green transformation can future-proof its manufacturing base — even as it simultaneously launches a new trade security dialogue to navigate the intensifying US-China tech war.
Key Takeaways
South Korea's Ministry of Trade, Industry and Resources will provide ₩300 billion ($203.6 million) over three to four years for AI and green industrial transformation.
An initial ₩90 billion will be deployed across nine projects in 2025.
Since 2019 , 24 industrial complexes — including those in Changwon , Incheon , Daegu , Yeosu , and Ulsan — have been designated under this initiative.
A separate inaugural public-private trade security dialogue was held with executives from semiconductor, AI, and quantum companies to address US export controls and China's supply chain regulations.
The ministry plans to establish hotlines with business associations by end-June 2025 to streamline trade security responses.
South Korea's Ministry of Trade, Industry and Resources announced on Tuesday, 28 April 2025, that it will provide a combined ₩300 billion (approximately $203.6 million) in support for projects aimed at accelerating the artificial intelligence (AI) and green transformation of industrial complexes across the country. The funding will be disbursed over the next three to four years across nine projects focused on creating so-called smart and green industrial complexes.
Funding Structure and Immediate Outlay
According to the ministry, an initial outlay of ₩90 billion will be invested in the nine selected projects in the current year alone, with the remainder to follow in phased tranches. The projects are designed to embed AI-driven efficiencies and eco-friendly manufacturing practices into existing industrial infrastructure. Officials indicated the goal is not merely technological upgradation but a structural overhaul of how industrial complexes operate and compete globally.
24 Complexes Already Designated Since 2019
The initiative builds on a programme that has been underway since 2019, during which the ministry has designated a total of 24 industrial complexes across South Korea. These include major manufacturing hubs in Changwon, Incheon, Daegu, Yeosu, and Ulsan. The complexes serve as the primary testbeds for the government's broader push to foster innovation and eco-friendly growth across the manufacturing sector.
A ministry official underscored the dual objective of the programme:
Point of View
But the more telling signal is the launch of a formal public-private channel to navigate US semiconductor export controls and China's supply chain rules simultaneously. Seoul is effectively hedging: modernising its industrial base at home while building diplomatic shock absorbers for the tech war raging abroad. Whether nine projects across 24 complexes can move the needle on manufacturing competitiveness — or whether this remains a well-funded pilot — will depend on execution speed and private sector uptake.
NationPress
1 May 2026
Frequently Asked Questions
How much is South Korea investing in AI and green industrial transformation?
South Korea's Ministry of Trade, Industry and Resources has committed ₩300 billion (approximately $203.6 million) over three to four years for nine projects aimed at AI and green transformation of industrial complexes. An initial ₩90 billion will be deployed in 2025.
Which industrial complexes are included in South Korea's smart and green initiative?
Since 2019, the ministry has designated 24 industrial complexes across South Korea, including major hubs in Changwon, Incheon, Daegu, Yeosu, and Ulsan. These serve as the primary sites for AI integration and eco-friendly manufacturing upgrades.
What is South Korea's trade security dialogue?
It is an inaugural public-private forum launched by the Ministry of Trade, Industry and Resources, bringing together executives from semiconductor, AI, and quantum companies to address trade security challenges including US export controls and China's supply chain management regulations.
When will South Korea establish trade security hotlines with industry?
The ministry plans to set up hotlines with various business associations by end-June 2025, extending the dialogue beyond semiconductors and AI to sectors including machinery, robotics, and automobiles.
Why is South Korea launching these industrial and trade initiatives now?
The moves come amid an intensifying global tech war, with the US tightening semiconductor export controls and China announcing new supply chain management regulations. Seoul is seeking to future-proof its manufacturing base and help Korean companies maintain competitiveness amid shifting global trade dynamics.
