South Korea’s push for military applications of physical AI

International Institute for Strategic Studies  |  Lami Kim

South Korea is rapidly integrating physical artificial intelligence into its armed forces to modernize capabilities and offset a severe demographic decline that reduced eligible active-duty conscripts by approximately 30% between 2016 and 2025. To compensate, the Ministry of National Defense plans a 75% reduction in frontline troops at general outposts along the Demilitarized Zone, replacing them with AI-enabled sensor networks.

This operational transition relies on South Korea's deep manufacturing ecosystem and market dominance in high-bandwidth memory semiconductors, where domestic firms Samsung Electronics and SK Hynix control over 80% of global supply. Conscription shortfalls make front-line automation imperative. Seoul is actively testing quadruped combat robots with Hyundai Rotem and Rainbow Robotics while preparing to deploy Hanwha's multipurpose uninhabited ground vehicles by 2028. These developments position South Korea to supply European and US security partners seeking to decouple from Chinese robotic component supply chains. Nevertheless, cumbersome defense acquisition processes and Chinese cost advantages threaten long-term global competitiveness.

Comment

The rapid commercialisation of platforms like the Raibo 2 quadruped illustrates how academic innovation from KAIST translates directly into scalable defence hardware. By leveraging proprietary dynamic simulation algorithms alongside high-bandwidth memory components from SK Hynix, South Korea reduces prototype development cycles far faster than traditional defence primes. This integrated industrial structure enables local manufacturers to mass-produce military robotics without reliance on foreign component architecture.

This commercial-military symbiosis operates through a dense ecosystem of small-scale suppliers feeding major conglomerates like Hyundai Rotem. Consequently, domestic component sourcing shields the production lines of platforms such as Hanwha's multipurpose UGV from external supply disruptions or export controls.

Strategic Question for Discussion

If domestic platform integration for systems like Hanwha's multipurpose UGV successfully mitigates manpower deficits along the Demilitarized Zone, will South Korean defense exporters prioritize sovereign component security or cost competitiveness when bidding against Chinese robotics manufacturers in Western markets?

The available evidence points toward Seoul prioritizing domestic component integrity and hardware security over pure price competition to appeal to NATO and US security partners. While Chinese manufacturers maintain significant cost advantages through scale, South Korean platforms leverage trusted supply chains and advanced memory chip integration as their primary competitive differentiator. Consequently, South Korean defense exporters will likely market their unmanned systems as premium, cyber-secure alternatives to Chinese hardware rather than attempting to undercut them on price.

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