"Less Than 50% Localization of Korea's Core Components"... Uncertainty Remains Even as Robot Industry Grows [In-Depth Look at China's Humanoid Ecosystem] ⑦

No Domestic Robot Industry Ecosystem... Heavy Reliance on China
Samsung, LG, and Hyundai Motor to Unveil Humanoids at Next Year's CES
"Will This Make Money?"... Korea Trapped by 'Trust Capital'

Editor's NoteAt school sports festivals in Shenzhen, China, it is not unusual to see parents bringing robots. In China, robots have become deeply integrated into daily life, to the extent that the country even hosts a Robot Olympics. This phenomenon is supported by an ecosystem that makes it easy to manufacture robots. In Shenzhen's Huaqiangbei, it is possible to source all the necessary parts to build a robot in just one day. Robots created in this way are then deployed in factories and other settings, creating a virtuous cycle that boosts productivity. In contrast, in Korea, robots remain confined to laboratories and prototypes, with the country struggling to even reach the starting line of industrialization. Asia Economy has examined the structure and speed of the humanoid robot ecosystem on the ground in Shenzhen, China. As the world is already engaged in a race to commercialize humanoid robots, the article seeks to identify the challenges Korea has missed and explore urgent strategies to ensure the country does not fall behind.

"At this rate, we will have nothing even five years from now."

Lee Isu, a leading domestic robotics expert and head of the Humanoid Research Group at the AI Robot Research Center of the Korea Institute of Science and Technology (KIST), painted a bleak picture of the future of Korea's humanoid robot industry. While the United States leads with artificial intelligence (AI) and capital, and China is catching up with platforms and mass production, Korea continues to hesitate over profitability. The industry remains stalled by the question, "Will this make money right now?" Currently, there is virtually no domestic ecosystem for the components and software needed to build humanoid robots. Experts warn that unless Korea nurtures its own robotics industry ecosystem, mass production of robots will ultimately lead to dependence on foreign products.

No Domestic Robot Industry Ecosystem... Heavy Dependence on China

A humanoid robot is exhibited at the "K-Humanoid Alliance Launch Ceremony" held on April 10 at The Plaza Hotel in Jung-gu, Seoul. Photo by Jinhyung Kang

When examining the domestic robot parts supply chain, dependence on China is significant. An industry insider noted, "If you go to a motor company and ask them to make just a few motors you need, they won't do it," adding, "If you want to develop something right now, you either have to buy parts from China or make them yourself."

The biggest reason is lack of demand. Ryu Jaewan, CEO of SBB Tech and chairman of the Robot Parts Council under the Korea Association of Robot Industry, said, "Currently, there is almost no revenue from robot parts," predicting, "It will not be until at least 2030, five years from now, that humanoid robots will actually be applied to our production lines and their scale will increase."

The localization rate of core robot parts in Korea is only 35.8% for reducers, 38.8% for motors, 42.5% for sensors, and 47.9% for controllers. For reducers alone, Japanese products account for 70% of the market, and more than half of the precision servo motors and controllers required for precise robot movements are also dependent on Japan and China.

China is rapidly localizing its components. The localization rate for industrial robots increased from 27.3% in 2018 to 47.2% in 2023, and the localization rate for servo drivers rose from 40% to 90%. The self-sufficiency rate for drive components has already surpassed 70%. At the government level, China has established a fund worth approximately 188 trillion won, while Korea's support for the K-Humanoid Alliance amounts to just over 1 trillion won. Experts warn that if Korea's structure of sourcing key components from China becomes entrenched, the Korean robotics industry could lose its identity and ultimately be absorbed into the Chinese ecosystem.

Humanoid robots are not merely experimental devices. Given their potential to replace labor in Korea's manufacturing sector-a foundation of the national economy-concerns about dependency are even more acute.

For this reason, some argue that while mass production of robots is important, efforts to establish an industrial ecosystem are essential. Park Jaeheung, professor at Seoul National University Graduate School of Convergence Science and Technology and CEO of Blue Robin, said, "The investment industry tends to look only three to five years ahead and questions whether Korea really needs to pursue humanoids, but the humanoid robot industry could become a future global growth engine, like automobiles and computers," adding, "If industrialization succeeds, it will have an even greater impact than the automobile." This is a warning that failing to secure leadership in humanoids could undermine the very foundation of future manufacturing. Market research firm Strategy Analytics (SA) projects that the global humanoid market will reach 1 trillion dollars (about 1,400 trillion won) by 2035, a scale comparable to the current global automobile market.

Samsung, LG, and Hyundai Motor to Unveil Humanoids at Next Year's CES

Unlike in the United States and China, Korean companies are only now taking their first steps. Major domestic conglomerates such as Samsung, LG, and Hyundai Motor are preparing humanoid robots for the "CES 2026," the world's largest electronics and IT exhibition to be held in the United States in January next year. Industry insiders say there is a growing sentiment that companies should actively showcase humanoid models at CES. While some prototypes have reportedly been produced, there is speculation that if they are not fully developed by January, their release may be delayed. The K-Humanoid Alliance, launched under government leadership with participation from major domestic robot companies, research institutes, and component manufacturers, is reportedly planning to set up a dedicated exhibition hall at CES.

Samsung Electronics is accelerating development through its newly established "Future Robot Promotion Team," with Samsung Research and its subsidiary Rainbow Robotics each playing a role. LG Electronics is simultaneously developing home-use humanoids through its "Robot Advanced Research Lab" under the Chief Technology Officer (CTO) division and the Home Appliance & Air Solution (HS) business division, which handles home appliances. Hyundai Motor is enhancing its technology by dividing hardware and software responsibilities between its "Robotics Lab" under the R&D division and its subsidiary Boston Dynamics. However, aside from "Atlas," developed by Boston Dynamics, a Hyundai Motor subsidiary, there are still no commercially available humanoid robot models released by domestic conglomerates. Robot manufacturers such as Arobot, Robotis, and Robros are planning to launch humanoid robot products starting in the second half of this year.

"Will This Make Money?"... Korea Trapped by 'Trust Capital'

Industry insiders point to the conservative stance of conglomerates, government ministries, and research institutes as the reason for Korea's slow progress in the humanoid robot industry. By prioritizing "trust capital" when verifying new technologies, they have failed to accelerate business initiatives.

Dr. Lee said, "Conglomerates and the government have long harbored doubts about whether the humanoid robot industry would actually be profitable, preventing them from pushing forward with confidence," adding, "While factories in the United States and China are willing to deliver and test products, Korean companies first ask whether the robots can actually be used, whether they will lower labor costs, and whether they can be used safely." Another expert commented, "It seems that conglomerates are only pursuing the humanoid business if the overall atmosphere is favorable."

Government support programs also face criticism for focusing more on thoroughly verifying the need for investment rather than boldly betting on new technologies. Park Hyunjun, CTO of Robros, said, "In public institutions, there is a prevailing attitude that if a government project lasts three years, you should only purchase licenses for those three years and not any longer," adding, "It has not been long since 'humanoid robots' were even included as a target for government support." Furthermore, government support projects typically last three to four years, which does not match the rapid pace of development in AI and robotics industries.

The situation is similar in the venture investment sector. The rapid progress in the United States and China has been driven by large-scale investments and supply from conglomerates and the venture capital industry. In contrast, Korea's investment sector tends to focus on short-term utility rather than future potential. A venture capital (VC) executive said, "In recent years, the investment climate has been so sluggish that investors are being cautious rather than making bold investments," adding, "With the humanoid robot industry currently led by American and Chinese companies, there are few domestic firms worth investing in. I believe Korean companies were slow to respond in the early stages."