S.Korea to spend $2.3 bn to quadruple robot market by 2030

South Korea’s public and private sectors will together invest more than 3 trillion won ($2.3 billion) by 2030 to nearly quadruple the domestic robot market to 20 trillion won ($15 billion) to relieve labor shortages in the country with the world's lowest birth rate, the Ministry of Trade, Industry and Energy said on Thursday.

To spur growth in the robot market, estimated at 5.6 trillion won in 2021, the country will concentrate on eight core technologies: servomotors, reducers, sensors, grippers, controllers, autonomous movement software, autonomous operation software and human-robot interaction.

Under the plan, 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, the ministry said.

Bang Moon Kyu, South Korea's industry minister, unveiled the blueprint to expand the robot market, presiding over a meeting with executives from major robot companies and officials from related associations and organizations.

The executives in attendance include LG Electronics Inc. Vice President Jang Ikhwan; Doosan Robotics Inc. CEO William (Junghoon) Ryu; and Yoon Sukjune, senior vice president and head of POSCO DX’s robot business department.

South Korea is grappling with a rapid decline in the working population. The working-age group in the country with a population of 51 million is forecast to dwindle by 3.2 million by 2030, compared to the 2021 level, according to the Ministry of Labor and Employment.

The government expects the proposed 3 trillion-won spending will increase the number of Korean startups in the robot industry with sales of more than 100 billion won to 30 by 2030, versus five in 2021.

In the serving robot segment, Chinese companies account for about half of the domestic market.

Alongside the market expansion plan, the government hopes Korean robot makers to source about 80% of parts and components at home, up sharply from the ratio of 44.4% in 2021.

Robot exports are forecast to grow to 5 trillion won ($3.9 billion) by 2030 from 1.1 trillion won ($850 million) in 2021.

ROBOT TEST FIELD

To facilitate the commercialization of robots in various sectors, the government earmarked about 200 billion won to create a national robot test field on a 166,973-square-meter site in the city of Daegu by 2028.

Development-stage robots can roam around and be tested on their service quality, safety and reliability in the field that will be constructed to replicate real working environments.

The government will train more than 15,000 people as robot industry workers by 2030.

Write to Han-Shin Park at phs@hankyung.com
 

Yeonhee Kim edited this article.