Korean Policy Reports Outline Strategies for AI and Manufacturing Edge

Recent reports from Korean research institutes have detailed strategic approaches for strengthening Korea’s position in manufacturing and artificial intelligence as global competition intensifies.

The Korea Institute for Industrial Economics & Trade (KIET) published a report on August 2, 2026, examining the evolving nature of U.S.-China competition. According to the report, the focus has shifted from tariffs and core technologies toward AI standards and control over global manufacturing processes.

KIET’s recommendations include constructing a “K-manufacturing architecture” that brings together critical manufacturing assets and a large language model trained on complex production data. The institute also suggests integrating AI into established industries to enhance the K-materials sector, and combining technology, production capacity, standards, and shop-floor data into a unified asset system.

The Institute for Future Strategy at Seoul National University released an issue brief on January 30, 2026, emphasizing the importance of data sovereignty in manufacturing AI. The brief states that competitiveness in this area depends on managing high-quality, domain-specific data rather than focusing only on AI model development.

What the numbers show

• KIET’s report was released on August 2, 2026.
• The Institute for Future Strategy published its issue brief on January 30, 2026.
• KISDI issued its Basic Research Report on June 8, 2026.

The Institute for Future Strategy’s policy proposals include supporting on-premise sovereign AI infrastructure, forming domestic manufacturing AI consortia, enacting legal protections for AI training data, and establishing standardized contracts to clarify data ownership and derivative rights.

The Korea Information Society Development Institute (KISDI) published a Basic Research Report on June 8, 2026, recommending a strategy of “minimum dependence, maximum competitiveness.” The report suggests that Korea should prioritize AI foundation models and cloud infrastructure in the short term, while focusing on semiconductors and system software in the medium term.

KISDI’s report also calls for the promotion of vertical AI and physical AI technologies that are closely linked to Korea’s strategic industries. These measures are intended to accelerate the adoption of AI in industrial settings.

Together, the reports from KIET, the Institute for Future Strategy, and KISDI outline a multi-faceted approach to maintaining and enhancing Korea’s manufacturing and AI capabilities in response to changing global dynamics.

* This article is based on publicly available information at the time of writing.