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Korean Industrial Insight No. 22 of AI, Semiconductors, Batteries, Electric vehicles, and Bio

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KH

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2026-03-03

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Ⅰ. AI INDUSTRY TRENDS

1. South Korean Government Adds Motif Technologies to Independent AI Project Elite Team

- Four-way race reshapes… AI battle ignites with ‘newcomer’ Motif joining
- Challenging LG, SKT, and Upstage… Motif bets on its ‘Inference-Capable 300B Model’
- Inter-ministerial ‘K-AI Project’ Round 2… Battle for ‘AI Sovereignty’ pouring in 768 GPUs
Motif Technologies' has been added to the elite team of 'Independent AI Foundation Model Project,' a government initiative supporting the development of a national AI model.
The Ministry of Science and ICT announced on the 20th that Motif Technologies was selected following an in-depth evaluation of the consortium comprising Motif Technologies and Trillion Labs, which participated in the additional call for proposals for the Independent AI Project.
The elite team includes Motif Technologies, Moreh, Crowdworks, N.Light, Seoul National University Industry-Academic Cooperation Foundation, Korea Advanced Institute of Science and Technology (KAIST), Hanyang University Industry-Academic Cooperation Foundation, Samil Accounting Firm, Korea Heritage Agency, HDC Labs, Mathpresso, Enuma Korea, Kyunghyang Shinmun, Jeonbuk Technopark, Mobilus, XYZ, and Fadu.
The elite team aims to develop a 300B-scale (300 billion parameters) large language model for inference based on proprietary AI technology.
Motif Technologies will join LG AI Research, Upstage, and SK Telecom—which passed the first evaluation last month—in competing to develop world-class proprietary AI models.
Following the elimination of Naver Cloud and NC AI in the first evaluation, leaving a vacant spot among the originally planned four elite teams, the Ministry of Science and ICT conducted an additional call for applications.
The government plans to conduct a second evaluation in August for the four elite teams—LG AI Research, Upstage, SK Telecom, and Motif Technologies—to select three. It will then choose two teams as the final recipients of support by the end of this year.

2. SK Hynix Chairman Chey Tae-won: “Must Increase Production of ‘AI Monster Chip’ HBM… Need New Energy Sources”

SK Group Chairman Chey Tae-won stated that production of the 'monster chip,' which plays a pivotal role in the artificial intelligence (AI) industry, must be significantly increased.
In his welcome speach at the 5th Trans-Pacific Dialogue (TPD) hosted by the Chey Institute for Advanced Studies in Washington DC over two days ending the 21st, Chairman Chey referred to SK Hynix's flagship product, High Bandwidth Memory (HBM), as a monster chip, emphasizing it as "the most advanced technology."
HBM is a memory technology that stacks DRAM chips to supply high bandwidth to high-performance graphics processing units (GPUs), enabling greater computational performance. The product Chairman Chey mentioned is the latest HBM4 (6th generation), which stacks 16 chips.
Chairman Chey stated, "We (SK Hynix) must produce more monster chips," adding, "These monster chips are the products truly bringing in the big money for our company these days." HBM's market margin rate is known to be around 60%.
Chairman Chey noted, however, that the "shortage of HBM caused by the surge in demand from AI companies creates an entirely different story. HBM has a margin of 60%, while general chips have a margin of 80%," pointing out that "this is a distortion."
Chey explained that supply remains over 30% short of AI companies' demand this year. As AI infrastructure absorbs all memory chips, non-AI memory supply is shrinking, leading to market issues like margin reversals.
Given such high volatility in prices and margin rates, he projected that "the market's new estimate for SK Hynix's operating profit this year could exceed $100 billion," but cautioned, "However, it could also turn into a $100 billion loss."
He further diagnosed, "Even PC companies and smartphone manufacturers are not creating applications at the same level as before. Some of them will likely exit the business," adding, "This shortage is completely reshaping the world's industrial structure."
Chairman Chey introduced that the AI industry, which he described as "devouring everything," inevitably requires enormous energy (electricity). Because of this, "we are preparing a new solution that involves building AI data centers and power plants together."
He emphasized, "Failing to properly meet power demand will lead to disaster," adding, "Energy is another major problem and a significant challenge for society as a whole."
Meeting with reporters at the event, Chairman Chey stated, "Building AI infrastructure has become impossible without energy, so we need new energy sources," adding, "We must establish long-term plans to create them."

3. AI and Data Capabilities Drive Salary Gaps… Shifting
Landscape in Hiring Market

- AI and development roles: 49.97 million won
- Digital tool proficiency crucial
- Technology-based transformation reflected in wages
AI and data utilization skills have become key competitive factors determining salaries in the job market.
Beyond job expertise, the ability to enhance work efficiency using digital tools is becoming the benchmark that determines wage levels.
According to the 'HR Money Report 2026' published by JOBKOREA on the 11th, the average annual salary for AI, development, and data roles was 49.47 million won, the highest among 21 major job categories. This was followed by planning and strategy at 49.12 million won, finance and insurance at 47.79 million won, and engineering and design at 46.61 million won.
JOBKOREA analyzed that roles requiring strong digital work capabilities and data utilization skills dominated the top salary brackets. This reflects how the shift towards a technology-based industrial structure is impacting wage structures.
Average annual salaries by company size were 52.79 million won for large corporations, 44.83 million won for strong mid-sized companies, and 39.94 million won for small and medium-sized businesses. Strong mid-sized companies paid about 85% of large corporations' levels, while small and medium-sized businesses paid about 76%. The compensation gap by company size remained pronounced.
By industry, finance and banking had the highest average salary at 46.78 million won, followed by IT and telecommunications at 46.56 million won, manufacturing, production, and chemicals at 45.36 million won, and construction at 44.74 million won. This suggests that digital transformation and capital-intensive industries maintain relatively higher compensation structures.
This year's salary increase projections are conservative. Forty percent of companies expect increases below 1-5%, while 31% anticipate increases below 5-10%. Only 16% of companies forecast increases of 10% or more. Economic uncertainty and cost burdens appear to be influencing labor cost policies.
This report was compiled based on a survey of 485 corporate hiring managers and JOBKOREA’s 30 years of accumulated hiring data. The report can be viewed on JOBKOREA’s notice page.


Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS

1. Elon Musk Welcomes Korea’s Semiconductor Talent… Tesla Hiring Sparks Samsung・SK Alert

- Targeting specific nation’s semiconductor workforce seen as an unusual move
- “Signals high demand for skilled personnel ready for immediate deployment”
- “Must create environment to retain core research talent aligned with industry cycles”
Amid Tesla CEO Elon Musk's public proposal to recruit Korean semiconductor talent, analysts suggest domestic semiconductor giants like Samsung Electronics and SK Hynix may face increased pressure to retain their workforce.
On the 16th (local time), CEO Musk shared a job posting for AI chip engineers at Tesla Korea, Tesla's Korean sales subsidiary, on social media platform X, stating, "If you want to work in semiconductor design, manufacturing, or software (SW) in Korea, join Tesla."
The inclusion of 16 Taegeukgi (South Korean flag) emojis alongside the post, publicly targeting semiconductor talent from a specific country, is also seen as unusual.
He wrote, "If you live in Korea and want to work in chip design, fabrication (fab), or artificial intelligence (AI) software, apply to Tesla."
Earlier on the 15th, Tesla Korea posted a job listing stating, "We are seeking talent to join us in developing world-class mass-produced AI chips."
Tesla Korea introduced the project, stating, "This project aims to develop the world's highest-volume AI chip architecture."
Amid expanding global investment in AI infrastructure, this move is interpreted as an effort to strengthen AI competitiveness by attracting talent from Korea, a leading semiconductor powerhouse.
Tesla currently produces AI chips for its self-developed autonomous vehicles and humanoid robots. Last July, it signed a 23 trillion won foundry (semiconductor contract manufacturing) supply agreement with Samsung Electronics and decided to produce its next-generation AI chip, the A16, at Samsung's Taylor Plant.
U.S. Big Tech companies, including Tesla, are focusing on developing application specific integrated circuits (ASIC) designed to suit their own services. Consequently, they are actively recruiting top-tier semiconductor talent from Korea, which possesses expertise in memory semiconductors like high-bandwidth memory (HBM) and design capabilities.
Korea dominates over 70% of the memory semiconductor market, and Samsung Electronics is a comprehensive semiconductor company encompassing foundry operations and a System LSI division responsible for semiconductor design and development.
From the perspective of Big Tech companies, this represents an attractive hiring market rich with outstanding semiconductor talent. Indeed, various Big Tech firms like NVIDIA, Google, and Broadcom are reportedly recruiting HBM engineers in the US.
With U.S. Big Tech joining the recruitment competition between the three memory semiconductor manufacturers—Samsung Electronics, SK Hynix, and Micron—and TSMC, the battle for semiconductor talent is expected to intensify.
A related official from the semiconductor industry stated, "As Korea elevates its position in the global AI supply chain, led by HBM, Big Tech's courtship of Korean engineers is expected to intensify." They added, "Samsung Electronics and SK Hynix will need differentiated strategies to retain domestic talent in competition with Big Tech, which offers base salaries in the hundreds of millions of won plus stock compensation."

2. BlackRock Acquires 5% Stake in SK Hynix

Global asset manager BlackRock has become a major shareholder in SK Hynix by acquiring over a 5% stake. This move comes amid expanding investments in artificial intelligence (AI) infrastructure and expectations for improved memory semiconductor market conditions, reflecting strengthened buying interest from foreign institutional investors in the leading semiconductor stock.
According to the Financial Supervisory Service's electronic disclosure system (DART) on the 20th, BlackRock disclosed holding 36,407,157 shares of SK Hynix, exceeding a 5% stake. This marks the first time BlackRock has held over 5% of SK Hynix since May 9, 2018, approximately 7 years and 9 months ago.
The return of this major global institutional investor as a key shareholder is interpreted as reflecting expectations for an improvement in the memory semiconductor market. This is because expectations for improved performance among memory semiconductor companies are growing, driven by recent expansions in AI server investments and increased demand for high-bandwidth memory (HBM).
The semiconductor sector is also seen as relatively attractive from a valuation perspective. Hanwha Investment & Securities analyst Ahn Hyun-kuk noted, "The current price earning ratio (PER) for semiconductors is lower than during the COVID-19 shock trough," adding, "Meanwhile, the KOSPI PER excluding semiconductors is high, comparable to levels seen during the COVID-19 bull market peak."
Global semiconductor momentum also appears to be continuing. Lee Jae-won, an analyst at Shinhan Investment & Securities, explained, "The U.S. stock market remained neutral or stronger during the Lunar New Year holiday, with AI infrastructure and memory stocks continuing their strength, pushing the index to new highs." He added, "Consumer prices also came in below expectations, contributing to a relief rally. Events like Nvidia's earnings at the end of February and GTC 2026 in March are poised to sustain semiconductor momentum."
The market expects global institutional investors to continue increasing their semiconductor holdings, driven by the convergence of expanded AI infrastructure investment and expectations for a recovery in the memory sector. Particularly, if the supply-demand improvement for SK Hynix by foreign and global institutional investors continues, expectations for further stock price gains could rise.
Earlier, BlackRock purchased an additional 2.1 million shares of Samsung Electronics common stock on the 28th of last month, expanding its stake to 5.07% (approximately 25.4 trillion won). This move is interpreted as a strategic bet based on the assessment that Samsung Electronics' stock price has entered a rebound momentum phase.

3. KB Financial Group Establishes KRW 1 Trillion Infrastructure Fund… Investing in Yongin Semiconductor Cluster

KB Financial Group is establishing a large-scale infrastructure fund worth 1 trillion won to invest in national strategic industries such as semiconductors and energy. This is the infrastructure fund formed solely by a private financial group. Investment targets include domestic infrastructure development, construction, and operation projects, such as the collective energy project for the Yongin Semiconductor Cluster.
KB Financial announced on the 19th, "We are establishing the 'KB National Growth Infrastructure Fund' with the goals of fostering advanced industries and promoting balanced regional development." The fund will be fully financed with group capital, contributed by major affiliates including KB Kookmin Bank, KB Insurance, and KB Life Insurance. It is considered unusual for a private financial group to establish a 1 trillion won infrastructure fund entirely on its own without external funding.
Notably, this fund will incorporate the Yongin Semiconductor Cluster District Energy Project, one of the National Growth Fund's mega-projects, as a key investment asset. The Yongin Semiconductor Cluster District Energy Project provides the power and heat supply infrastructure essential for operating large-scale semiconductor factories and is considered a core project that will determine the nation's future semiconductor competitiveness. KB Financial Group plans to expand its investment targets to include AI data centers, renewable energy, and regional SOC.
A KB Financial Group official stated, "We expect this fund formation to serve as a catalyst for the financial sector to actively pursue long-term investments in the SOC sector," adding, "We will continue to do our utmost to fulfill finance's fundamental role in enhancing the competitiveness of advanced strategic industries, while also enabling local communities, SMEs, and the youth of future generations to grow together."


Ⅲ. BATTERY AND ELECTRIC VEHICLE INDUSTRY TREND

1. Robot Battery Commercialization Competition

- Average annual market growth rate: 39.2%
- Expanding applications to robots
- Samsung SDI targets mass production next year
- LG Energy Solution and SK On accelerate all-solid-state battery business
The global all-solid-state battery market is projected to grow more than tenfold in six years. This outlook is expected to accelerate the pace of South Korean battery companies pursuing all-solid-state projects as a future growth engine.
According to a report released on the 16th by global market research firm Coherent Market Insights (CMI), the global all-solid-state battery market size is projected to expand from approximately $1.9718 billion (2.84 trillion won) last year to about $19.9681 billion (28.8 trillion won) by 2032. The compound annual growth rate (CAGR) over this period is projected to reach 39.2%.
CMI observed, "All-solid-state batteries are poised to establish themselves as next-generation batteries with high technological potential in terms of safety and energy density."
Often called the 'dream battery,' solid-state batteries differ from lithium-ion batteries, which use liquid electrolytes. Their solid electrolyte offers higher energy density and greater resistance to heat and pressure, reducing the risk of fire and explosion.
Initial demand for all-solid-state batteries is expected to center on small products like home appliances, wearables, and medical devices. The industry view is that demand will subsequently expand into electric vehicles and robotics as technology advances and industrial demand grows.
However, CMI pointed out that high manufacturing costs and complex processes are factors limiting the mass production of all-solid-state batteries and their expanded application in electric vehicles and other areas.
It identified companies leading the global all-solid-state battery industry, including U.S.-based Solvay, Simbio, SolidPower, and Japan's Panasonic, and included Samsung SDI as the sole domestic company.
Amid projections of explosive market growth, competition among companies to overcome the process challenges and cost issues in all-solid-state battery development and accelerate the commercialization is intensifying.
Among Korea's three major battery companies, Samsung SDI has the earliest commercialization target, aiming for next year.
Samsung SDI became the first domestic battery company to establish an all-solid-state pilot line in 2023, supplying samples to customers and conducting tests.
By the end of last year, it had also agreed to jointly pursue a technical verification project with Germany's BMW and the U.S.'s SolidPower for automotive applications of all-solid-state batteries, earning recognition for leading the global industry in this technology.
During its earnings conference call earlier this month, Samsung SDI stated, "We are preparing for the commercialization of next-generation all-solid-state batteries according to our planned schedule, expanding business opportunities with the goal of mass production next year while also proceeding with line expansion investments within this year."
LG Energy Solution and SK On are also accelerating their all-solid-state battery businesses.
LG Energy Solution is developing processes capable of enhancing electrolyte materials and achieving high-density implementation to showcase competitive all-solid-state batteries.
The company plans to commercialize graphite-based all-solid-state batteries for electric vehicles by 2029 and prioritize applying anode-free all-solid-state batteries for humanoid robots by 2030.
SK On is targeting commercialization by 2029 and is known to be focusing first on defense applications for solid-state batteries.
In this regard, SK On is constructing a solid-state battery pilot plant at the Daejeon Future Technology Center to develop sulfide-based solid-state batteries and lithium metal batteries.
Additionally, through collaboration with SolidPower, it is accelerating development by utilizing cell design and process technology in R&D and receiving sulfide-based solid electrolytes.

2. Competition Heats Up in KRW 30 Million Range Cost-Effective EVs. Sales Also Increase.

- Breaking the ‘psychological barrier’ below KRW 40 million
- Volvo EX30 price lowered to KRW 39.91 million
- Tesla Model 3 and BYD compete on value
- Kia EV’s actual purchase price in the KRW 30 million range
Competition for 'value-for-money' vehicles in the 30 million won range is intensifying in the domestic electric vehicle market.
The strategy is to capture the entry-level EV market by lowering the actual purchase price below 40 million won, a level previously seen as a psychological resistance point for consumers.
According to the Korea Automobile & Mobility Association, January EV sales totaled 10,098 units. This represents a 507.2% increase compared to 1,663 units sold in January last year.
This sales rebound is attributed to the earlier disbursement of this year's EV purchase subsidies compared to last year and price cuts by major automakers.
A key factor is that electric compact SUVs and electric midsize sedans have entered the 30 million won price range. The actual purchase price, reflecting subsidies, is even lower.
When prices drop to the low 30 million won range, the price gap with higher-trim internal combustion engine vehicles in the same class narrows to several million won. This structure broadens consumer choice.
Previously, the mid-to-low-priced EV lineup was limited to compact car-class models like the Hyundai Casper Electric and Kia Ray Electric.
Kia launched the EV3 with a starting price of 39.95 million won. Reflecting subsidies, the actual purchase price in Seoul is around 35.95 million won. This signaled the expansion of the small electric SUV market.
Recently, Kia introduced the mid-size electric SUV EV5 Standard model Air Trim at 43.1 million won. Including purchase subsidies and EV conversion support, the actual purchase price drops to around 34 million won.
Hyundai also reduced the price of the EV5 Long Range model by 2.8 million won. Consequently, the effective purchase price for the Air Trim has dropped to around 37.82 million won.
Hyundai is responding with the Kona Electric. While the starting price is 41.52 million won, the effective purchase price after subsidies is around 35.84 million won.
Imported cars have also joined the price reduction trend. Tesla set the starting price for the Model 3 Standard RWD at 41.99 million won, lowering the actual purchase price to around 36 million won.
Volvo has reduced the price of its compact electric SUV, the EX30, by up to 7.61 million won. The Entry Trim Core price has been adjusted from 47.52 million won to 39.91 million won. The actual purchase price is expected to be around 36.7 million won.
BYD launched its compact electric SUV, the Atto 3, and midsize sedan, the Seal, in the 30 million won range. Actual purchase prices are 29.87 million won for the Atto 3 and 37.71 million won for the Seal, positioning them at lower price points compared to competitors in their class.
An industry insider stated, "It appears to be a strategy where automakers are willing to accept some decline in profitability to expand EV adoption and capture market share."

3. Share of ‘Internal Combustion Engines’ Among Imported Cars Plummets. EVs Increase 14-Fold in Four Years.

The proportion of internal combustion engine vehicles among newly registered imported passenger cars last year fell to one-fifth of the level four years ago.
According to the Korea Automobile Importers & Distributors Association (KAIDA) today (22nd), out of the total 307,377 newly registered imported passenger cars last year, internal combustion engine vehicles (gasoline, diesel) numbered 41,906, accounting for only about 13.6% of the total. This represents a 50.4 percentage point drop compared to 64% in 2021.
Over the past five years, the share of internal combustion engine vehicles among newly registered imported cars has steadily declined. It plummeted from 64% in 2021 to 26.7% in 2024, falling to the 10% range last year and hitting an all-time low.
New registrations of imported internal combustion engine vehicles themselves decreased by approximately 76.3%, from 176,725 units in 2021 to around 40,000 units last year.
The shift among the 2030 generation was particularly pronounced. In 2021, internal combustion engine vehicles accounted for 46,721 units, or about 74.7% of all new imported car registrations by the 2030 generation. However, last year, this figure dropped to 7,825 units, representing only about 12.5% of the total. This marks the first time since 2021 that the proportion of internal combustion engine vehicles among new imported car registrations by the 2030 generation has fallen below the overall average.
Preference for internal combustion engine vehicles has shifted toward eco-friendly vehicles such as electric cars.
Last year, 91,253 imported electric vehicles were newly registered, while hybrid vehicles (combining FHEV, MHEV, and PHEV) totaled 174,218 units.
The growth of imported electric vehicles was particularly pronounced. Last year's new registrations for imported electric vehicles surged over 14 times compared to 2021 (6,340 units). This also represents an increase of over 80% compared to the previous year (49,496 units).
The growth in new registrations of imported EVs among the 2030 generation was even steeper. Registrations surged more than 26 times, from 1,104 units in 2021 to 29,104 units last year.
Experts attribute this to consumers' sensitivity to technological advancements and the cost-effectiveness strategies of imported car manufacturers.
Indeed, Tesla Korea lowered vehicle prices by increasing the proportion of cars produced at its Shanghai factory. As a result, 59,916 Tesla passenger electric vehicles were newly registered last year, according to KAIDA.
BYD, a Chinese EV brand pursuing a value-for-money strategy, also registered over 6,000 units.


Ⅵ. ROBOT INDUSTRY TRENDS

1. Hyundai Motor Group Invests in U.S. Physical AI Startup… Expanding Robot Ecosystem

- Invests millions of dollars in robot software developer ‘FieldAI’
- Experience collaborating with Boston Dynamics on robotic dogs… Will it expand to Atlas?
Hyundai Motor Group has made a multi-million dollar investment in a U.S. robotics startup.
This move demonstrates Hyundai Motor Group's proactive expansion of its collaboration scope with global tech companies as it pushes physical AI as a future growth engine.
According to the startup industry, Hyundai Motor Group recently invested in the US robotics software startup 'FieldAI'. The investment is reported to be in the millions of dollars.
FieldAI is a startup developing AI software for robot control, with strengths in physical AI technology that supports robots' autonomous movement and task execution.
The 'Field Foundation Model' (FFM) being developed by FieldAI enables robots to recognize and assess risks in real-time and perform autonomous tasks even in complex and unpredictable environments.
Field AI's technological capabilities were recognized and last year it secured over $400 million in funding from investors including Bezos Expeditions, Intel Capital, and NVentures.
Hyundai Motor Group has recently been expanding its cooperative framework with global AI leaders.
Last year, it signed a business agreement with NVIDIA, the world's largest semiconductor company, to enhance physical AI capabilities. This year, it formed a strategic partnership with Google DeepMind to accelerate the development of future humanoid technology.
Through these efforts, it has secured 50,000 units of the latest graphics processing units (GPUs), Blackwell, and researched AI models for complex robot control, steadily establishing a solid foundation for physical AI.
Regarding this FieldAI investment, observers note that synergies can be achieved by combining Hyundai Motor Group's hardware with FieldAI's software competitiveness.
Hyundai Motor Group possesses a diverse robot portfolio, including the next-generation humanoid 'Atlas', the four feet walking robot 'Spot', and the mobility platform 'MobED'.
Particularly noteworthy is FieldAI's ongoing partnership with Boston Dynamics, Hyundai Motor Group's robotics affiliate, fueling expectations that the collaborative relationship between the two companies could expand.
Field AI reportedly deployed its self-developed FFM on Boston Dynamics' robot dog 'Spot' at global construction sites across Asia, Europe, and North America.
Spot equipped with FFM can recognize complex environments and perform tasks autonomously without pre-mapped routes or predetermined paths, relying on various sensors like cameras and LiDAR.
There is also cautious speculation that this collaborative experience between the two companies could lead to future cooperation at the humanoid robot level and, further, drive the internalization of technology.
Hyundai Motor Group plans to deploy the humanoid Atlas at its HMGMA plant in Georgia, USA, starting in 2028, and expand its scope of work to include parts assembly from 2030.
Hyundai Motor Group Chairman Chung Eui-sun emphasized the necessity of internalizing AI technology at last month's New Year's gathering, stating, "The only way for Hyundai Motor Group to firmly establish itself as a global top-tier company is to embrace AI not as borrowed external technology, but as a vital force within the organization and make it our own."

2. Physical AI Shakes Up Capital Markets

- Related stocks see upside
- Hyundai Motor target price KRW 850K and Mobis 750K
- LG Display, Samsung Electro-Mechanics, and other beneficiaries draw attention
Physical AI (artificial intelligence with a physical body), including humanoid robots, is emerging as a key keyword in the domestic capital market. It is projected to become a new future growth engine across industries including automotive, electronics, batteries, and chemicals.
According to FnGuide, securities firm reports related to Physical AI published this year alone have reached over 20. The number of individual stock analyses mentioning Physical AI is significantly higher. Physical AI has established itself as a core topic across sectors including electronics, automotive, and chemicals.
Notably, Securities firms are raising stock targets prices, anticipating that the value of domestic companies will surge significantly once the physical AI market fully blossoms.
Hyundai Motor is highlighted as a prime beneficiary of Physical AI. Hyundai took center stage in the Physical AI market by unveiling its humanoid robot 'New Atlas' at CES 2026, the world's largest international electronics expo held in Las Vegas, USA, last January.
Hyundai plans to mass-produce New Atlas by 2028 and deploy it on production lines, anticipating a corresponding reduction in production costs. Samsung Securities has raised Hyundai's target stock price twice since CES, setting it at the highest level of 850,000 won.
Yim Eun-young, an analyst at Samsung Securities, stated, "Hyundai Motor will play a core role in robot production—providing behavioral data and verifying AI model training—rather than merely purchasing robots for the group's governance structure." She added, "This year marks the blossoming of physical AI services, so investors should not miss out on this visible growth potential."
Hyundai Motor Group affiliates are also drawing attention. KB Securities raised Hyundai Mobis' target price to 750,000 won and Hyundai AutoEver's to 700,000 won. Hyundai Mobis supplies actuators, the driving mechanisms for humanoid robots, while Hyundai AutoEver builds robot control systems.
Physical AI is also a key topic in the electronics sector, which produces various components like displays and cameras. Daishin Securities recently raised LG Electronics' target price to 160,000 won, analyzing that its physical AI competitiveness will create synergies across its entire business, including TVs, automotive components, and air conditioning systems.
For LG Display, it is anticipated that the portfolio of organic light-emitting diode (OLED) panels for displays, such as smartphones and TVs, will expand into the physical AI field this year.
Park Kang-ho, a researcher at Daishin Securities, stated: "OLED offers fast response times and excellent color reproduction, making it suitable for implementing a robot's eyes and mouth expressions. Flexible OLED enables application to curved areas like the head and arms, increasing design freedom," he said. "Having already secured reliability in automotive OLEDs, LG Display is highly likely to be recognized as a partner for global humanoid robot companies like Tesla and Boston Dynamics."
Samsung Electro-Mechanics is also identified as a beneficiary. Kim Yeon-soo, an analyst at KB Securities, explained, "Samsung Electro-Mechanics is expected to supply key components such as multilayer ceramic capacitors (MLCCs), cameras, and substrates to Tesla's humanoid robot (Optimus), just as it does for electric vehicles. It is also estimated to supply MLCCs and camera modules to Boston Dynamics' robot (Atlas), a competitor." Samsung Electro-Mechanics' target stock price has soared to as high as 450,000 won.
Chemical companies producing batteries for physical AI and strategic minerals like rare earth elements used in batteries are also expected to grow. LG Energy Solution, Samsung SDI, and SK On, preparing for the commercialization of all-solid-state batteries called as the 'dream battery,' are particularly identified as frontrunners poised to pioneer the related market.
Battery materials company EcoPro BM is preparing mass production of cathode materials and solid electrolytes for all-solid-state batteries with its customers. Additionally, companies like Korea Zinc, POSCO International, and LX International are drawing attention as future beneficiaries from a rare earth value chain perspective.
The securities industry views physical AI as poised to become a core enabler across entire industries, transcending specific companies. Choi Seung-woo, a researcher at KB Management Research Institute, stated, "The physical AI industry is entering a phase where it spreads across various industries along differentiated development paths by function, rather than converging into a single, complete technology." He added, "Going forward, not only technological superiority but also business model and ecosystem design capabilities will emerge as key competitive factors."

3. Samsung and LG Accelerate Race to Dominate Display Market for Humanoid ‘Robot Faces’

- OLED, lightweight and power-efficient, ideal for robots
As core businesses like TVs and smartphones enter maturity, Samsung Display and LG Display are focusing on the humanoid robot industry as a next-generation growth engine. Displays have emerged as the key interface in human-AI interaction, and the organic light-emitting diode (OLED) technology both companies specialize in is considered well-suited for robots.
According to industry sources, Samsung Display and LG Display unveiled OLED products targeting the robot market at CES 2026 held in Las Vegas last month. Samsung Display showcased its 'AI OLED Bot' featuring a 13.4-inch OLED panel on its face. This panel incorporates high-brightness driving technology for stable high-luminance performance and low-reflection technology to minimize light reflection.
LG Display has unveiled a plastic (P)-OLED panel suitable for mounting on the face of humanoid robots. Compared to glass-based OLEDs, it is lighter and more flexible, making it ideal for curved facial surfaces or joint structures. The company also applied automotive tandem OLEDs to this panel. Tandem OLED technology enhances brightness and lifespan by stacking multiple red, green, and blue (RGB) organic light-emitting layers. LG Display plans to apply these panels to LG Electronics' home humanoid robot 'CLOiD' starting next year.
Both companies are focusing on humanoid robots because growth in their existing core markets has stalled. The TV and smartphone markets have shifted toward replacement demand rather than new demand as replacement cycles lengthen. In contrast, the humanoid robot market is expanding rapidly alongside advances in artificial intelligence (AI). U.S. investment bank Morgan Stanley forecasts the humanoid robot market will grow at an average annual rate of 63%, reaching approximately $28 billion (about 52 trillion won) by 2035 and $5 trillion (about 7,000 trillion won) by 2050.
The emergence of displays as a key human-machine interface (HMI) has also been significant. This is because displays can complement the limitations of voice-centric communication and visualize AI expressions and information delivery. They enhance interaction with users while simultaneously increasing the utility of robots.
The fact that OLED, the core technology of both companies, is well-suited for humanoid robots also fuels optimism. Unlike liquid crystal displays (LCDs), OLEDs are self-emissive, meaning they emit light without requiring a backlight. This enables high contrast ratios, allowing natural expression of facial details like pupils and shadows. The absence of a backlight also facilitates thin and lightweight construction, making it advantageous for robot head design.
Relatively low power consumption is another strength. Since humanoid robots operate on batteries, power management is critical. As joint actuation consumes significant power, the display must operate at low power. OLED is advantageous for robot faces displaying expressions against a black background. While LCDs keep the backlight on even for black screens, OLEDs create black by turning off pixels, enabling more efficient power usage.
Samsung Display is already discussing collaborations with robotics companies. President Lee Cheong of Samsung Display stated at CES 2026 last month regarding the robot display business, "It's difficult to disclose specifics, but we are making deep progress." President Jeong Cheol-dong of LG Display, who attended the same event, expressed his intention to establish a foothold in the humanoid robot market using the technological capabilities accumulated in the automotive market.


Ⅴ. BIO INDUSTRY TRENDS

1. Will Botox Regulations Blocking K-Bio Exports Finally Ease?

- Designated as a National Core Technology for 16 years… Comprehensive regulations applied
- Ministry of Trade, Industry and Energy plans data-based re-evaluation
The outline for lifting the 'national core technology' designation—long identified as a major regulatory hurdle blocking the global expansion of the botulinum toxin industry over the past 16 years—is expected to emerge soon.
Industry attention is focused as the outcome of the government expert committee's deliberations is expected to significantly impact the pace of 'K-Bio's' global market expansion.
According to the pharmaceutical and biotech industry on the 22nd, the Ministry of Trade, Industry and Energy is expected to convene a specialized committee in the biotechnology field soon to re-examine the proposal to remove the designation of botulinum toxin strains and production processes as National Core Technologies.
The government designated the production process for botulinum toxin as a national core technology in 2010, then expanded the designation to include the strain itself in 2016, tightening management controls. Under the current 'Act on the Prevention of Leakage and Protection of Industrial Technology,' companies holding botulinum toxin designated as a national core technology must obtain prior approval or file a report with the Ministry of Trade, Industry and Energy not only for technology exports but also for mergers and acquisitions (M&A) by foreign companies or when attracting equity investments.
The industry has pointed out that these comprehensive regulations act as an administrative barrier hindering swift investment attraction and partnership formation in the global market. Critics argue that the government's intervention in the direction of management rights for private technologies not directly linked to national security is an administratively convenient approach that runs counter to global standards.
◇ Delayed approvals resulted lower returns… Annual opportunity losses over 100 billion won
According to data from the Korea Pharmaceutical and Bio-Pharma Manufacturers Association, the average time required for export approval of botulinum toxin products ranges from 4 to 6 months, with some cases taking nearly a year.
The strict review procedures required for designation as a national core technology are causing companies to miss the optimal timing for exports.
The direct opportunity loss for the entire industry resulting from this is estimated to reach 90 to 100 billion won annually.
In one case, a domestic botulinum toxin company missed an opportunity to capture an overseas market due to administrative approval delays, forcing it to supply products at prices up to 45% lower than competitors.
◇ Whether it's 'common technology' is key... Will outdated regulatory shackles be loosened?
The core issue in this re-examination is whether botulinum toxin manufacturing technology still meets the requirements for designation as a National Core Technology: 'technical scarcity' and 'industrial uniqueness'.
Academic and industry experts emphasize that this technology was already discovered in the 1940s, and its production process has been publicly detailed since the 1970s. They argue that in a global environment of technological leveling, regulations that only constrain domestic companies yield no practical benefit and only deepen reverse discrimination.
Particularly at a time of fierce global market competition, many voices argue that designating globally distributed natural strains and processes disclosed half a century ago as National Core Technologies is an anachronistic measure that stifles industrial dynamism.
A bio industry official stated, "The essence of the National Core Technology system is protection, not confinement," adding, "Regulations in areas with low protective benefit should be lifted to allow companies to demonstrate their true capabilities in the global market."
Recently, within the Ministry of Trade, Industry and Energy, there has been a movement toward administrative rationalization and reform, including a comprehensive restructuring of expert committees following Minister Kim Jeong-gwan's appointment. This has raised expectations for objective deliberations based on data and global market trends.
A government official stated, "We intend to discuss applications as quickly as possible once they are submitted, but we cannot disclose the timing of committee meetings," adding, "After expert committee review, procedures such as submitting the matter to the National Core Technology Protection Committee must also be followed."

2. Despite European Patent Expiration… No Biosimilar for 80% of Biologics

- 100 monopolies to end by 2032… $143 billion opportunity
A survey found that 8 out of 10 drugs facing patent expiry in Europe still lack biosimilars.
According to the report 'Sustainability of Biosimilars: Current Status and Challenges in the European Market' published by the Korea Biopharmaceutical Association, citing data from market research firm IQVIA, approximately 100 biopharmaceuticals will lose their exclusivity in Europe by 2032. Among these, 79% have no biosimilars currently in development.
Only 10% of biopharmaceuticals have biosimilars in the pipeline slated for European entry, while the status of the remaining 11% for European launch is unclear. Biosimilar development is particularly slow for products with low sales volumes or those in rare disease areas.
The ophthalmic treatment area is a prime example. Even six quarters after its launch, the first biosimilar in ophthalmology, 'ranibizumab', only reached a biosimilar share of about 40%. This is low compared to the biosimilar market share (50-60% or higher) observed in many other therapeutic areas. This gap in the biosimilar pipeline has been estimated to result in a potential opportunity loss of approximately $143 billion (about 207 trillion won) in the European market. This figure represents 55% of total biopharmaceutical sales facing imminent loss of exclusivity. The report analyzed, "Simply lowering prices is insufficient to sufficiently drive biosimilar adoption," adding, "Factors beyond price, such as formulation convenience, healthcare professionals' usage experience, and treatment methods, significantly influence actual adoption in clinical practice."
In Korea, companies like Celltrion, Samsung Bioepis, and Prestige BioPharma are actively expanding into the European biosimilar market. Among the 28 biosimilars recommended for approval by the European Medicines Agency (EMA) in 2024, Korean companies accounted for 12 products, the highest proportion. Last year, only one of the 41 products recommended for approval was from a domestic company.
The report emphasized that the structural challenges identified in the European biosimilar industry provide important implications for Korea as well. It recommended that Korean biosimilar companies need to preempt the biosimilar market in new therapeutic areas, such as ophthalmic and dermatological treatments, alongside their blockbuster-focused strategy. They should also enhance development efficiency by leveraging formulation differentiation and simplified global regulations. Another approach is to secure next-generation pipelines, such as antibody-drug conjugates (ADCs), based on accumulated production capabilities, and strengthen the foundation for long-term growth through diversification into emerging markets.
The report advised to monitor global pipelines and biologics with pending patent expiration in Korea, adding, "Establishing a preemptive response system through industry-academia-research-government collaboration in areas where development gaps are anticipated could enhance global competitiveness."

3. CJ CheilJedang Signs Licensing Agreement with Chinese Biotech Firm

- Secures stable royalty revenue
CJ CheilJedang announced on the 22nd that it has signed a lysine product technology license agreement with China's state-owned enterprise StarLake Eppen. StarLake Eppen, a bio-fermentation technology company, produces amino acids, food additives, and fertilizers.
Under this agreement, CJ CheilJedang will grant StarLake Eppen an exclusive license in China for the use of its proprietary lysine bacterial strain. The plan is to maximize synergies by combining CJ CheilJedang's globally proven, differentiated lysine fermentation and bacterial strain process optimization technology with StarLake Eppen’s large-scale production capacity and global market network. Through this, CJ CheilJedang is also expected to secure stable royalty income. CJ CheilJedang anticipates this agreement will serve as a catalyst to expand its lysine business, currently focused on production and sales, into future business models such as licensing and technology transfer. The two companies also plan to continue collaborating in the fields of biotechnology and bio-fermentation technology.
Yoon Seok-hwan, CEO of CJ CheilJedang, emphasized at the cooperation ceremony held in Guangzhou, China on the 11th of this month, "CJ CheilJedang's lysine technology and the value of its strains have once again been recognized in the global market." He added, "This cooperation is significant because it goes beyond a simple technology licensing agreement; it means the two companies have laid a solid foundation for the sustainable growth of the amino acid industry together."
CJ CheilJedang has expanded its green bio product portfolio starting with lysine in 1991, followed by threonine in 2000, tryptophan in 2010, valine in 2014, and methionine in 2015. It now holds the world's largest feed amino acid portfolio with a total of eight products, all of which are produced using its proprietary fermentation technology. A CJ CheilJedang official stated, emphasized, "The global feed amino acid market is generally highly volatile, with market sizes ranging from hundreds of billions to trillions of won depending on the product. In this fiercely competitive market, driven by aggressive capacity expansion by Chinese companies, CJ CheilJedang maintains its leading market share in tryptophan, arginine, and isoleucine based on proactive investment and advanced R&D competitiveness."

　

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