Korea and Japan Go All-In on AI Robots, Launching 100 Trillion Won Investment Race

* Editor's note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an "artificial intelligence (AI)-based customized news recommendation and summary service" developed with support from the Korea Press Foundation. It selects and provides six customized news items by reader type.

[[LINK_0]]1. Physical AI Takes Center Stage in National Strategies… Korea-Japan Race Ignites with "Catch China" Goal[[/LINK_0]]

- Key summary: Korea and Japan simultaneously announced national strategies aimed at catching up with China in the physical artificial intelligence (AI) robot industry. On the 29th, Korea set a 20% humanoid robot share target in its "Three Mega Projects," while on the 24th, Japan set a target of more than 30% AI robot share in its "17 Strategic Sectors." Japan's Takaichi Sanae cabinet unveiled a plan to inject 10.5 trillion yen (about 100 trillion won) through public-private cooperation by 2040 to secure a 20 trillion yen market. Korea and Japan are taking differentiated approaches: Korea is focusing on research and development (R&D) of three key components — actuators, robot hands, and sensors — while Japan is prioritizing support for the analog semiconductor industry used in robot control.

[[LINK_1]]2. Just Say "Clean It Up"… The Evolution of Chinese Robots Absorbing Field Data[[/LINK_1]]

- Key summary: Chinese startup Spirit AI, based in Beijing, is showcasing autonomous robot technology that operates on commands alone, driven by its vision-language-action (VLA) model "Spirit v1.5." The company has secured more than 400,000 data-collection sites across China through a strategy of using real-world data rather than internet photos or simulations. Global manufacturers such as Bosch and CATL have joined as strategic investors, and this past March its valuation surpassed 20 billion yuan, placing it in the "20 billion yuan club" alongside Unitree, AgiBot, and Galbot. However, the company explained that its robot brain model is still in early stages and that it supports research and development (R&D) by generating revenue through hardware sales.

- Key summary: DCI Partners, a venture capital (VC) firm under Japan's Daiwa Securities Group, established a 20 billion yen (about 190 billion won) bio-specialized investment fund. It is the largest among bio-specialized funds in Japan, with Korea Venture Investment Corp. (KVIC) and a Taiwanese government agency participating as investors. DCI Partners plans to attract additional contributions after the first round to expand the fund to 25 billion yen (about 240 billion won), with the raised capital to be invested in biotech startups across Asia, including Korea, China, Japan, and Taiwan. Japan's Ministry of Economy, Trade and Industry projected the bio-manufacturing market will reach 46.2 trillion yen (about 440.66 trillion won) in 2030 and 114.8 trillion yen (about 1.0951 quadrillion won) in 2040.

- Key summary: In line with the government's push to expand renewable energy, companies are increasingly adopting solar facilities, but the supporting power infrastructure is failing to keep pace. Kleannara (004540), Coway (021240), and Ace Bed (003800) have built solar power generation facilities on idle factory land. At some companies, cases have arisen where surplus power cannot be transmitted externally due to grid shortages even when generation exceeds consumption. Additionally, many companies hesitate to install energy storage systems (ESS) due to the heavy burden of initial investment costs. The government plans to expand solar deployment centered on industrial complexes to 6GW by 2030 and 7.5GW by 2035, while also improving grid connections.

- Key summary: In the first half of this year, foreigners net-sold 149.0436 trillion won on the KOSPI market while individuals net-bought 99.1686 trillion won. Foreign selling was concentrated in top market-cap stocks such as Samsung Electronics (005930) (72.5655 trillion won) and SK hynix (000660) (57.1269 trillion won), and the recurring pattern of concentrated selling at month- and quarter-ends lends weight to the interpretation that it reflects portfolio rebalancing. Meanwhile, on the 29th, net selling of 7.7332 trillion won broke the all-time record, with the selling trend continuing for eight consecutive trading days. In the securities industry, there is expectation that foreign funds could flow back in on the occasion of Samsung Electronics' preliminary July earnings and SK hynix's American depositary receipt (ADR) listing in the U.S.

[[LINK_5]]6. Full-Scale Support for Social Enterprises and Cooperatives… Framework Act Created and Financial Support Expanded[[/LINK_5]]

- Key summary: The government announced a comprehensive plan to foster social and solidarity economy organizations such as social enterprises and cooperatives. At the Cabinet meeting on the 30th, the Ministry of the Interior and Safety unveiled a cross-ministerial plan centered on enacting a Social and Solidarity Economy Framework Act and expanding financial, tax, and sales-channel support. Accordingly, the Korea Inclusive Finance Agency's Microcredit supply will expand from 6 billion won annually to 15 billion won, the Korea Credit Guarantee Fund's guarantee supply will expand to 350 billion won by 2030, and companies within three years of founding will receive commercialization funding of up to 1 billion won. In addition, social enterprises contracting with local governments will be granted a 5% exemption on bid deposits, and a mandatory public-sector purchase system will also be introduced.