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The AI War: Why South Korea is Betting Everything on Manufacturing 2026

Daniel Kim Views  

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Kim Jeong-gwan, Minister of Trade, Industry and Energy, speaks at the 1st M.AX Alliance general meeting held Dec. 24 last year at the Korea Chamber of Commerce and Industry in Seoul. Yonhap News

Kim Jeong-gwan, minister of Trade, Industry and Energy, described the manufacturing sector’s shift to artificial intelligence (M.AX) as a challenge directly tied to South Korea’s economic growth. He urged not only manufacturers but also the government, the National Assembly, businesses, universities, research institutes and labor groups to work together.

On May 27, Kim posted on social media a column titled Seven Thoughts on M.AX⑦: It’s Time for Everyone to Join In, in which he set out these views.

He wrote that the world is now engaged in an “M.AX war,” and the outcome will depend on how quickly AI is applied and scaled across industrial sites. He warned that no single company or institution can accomplish this alone.

Kim said the ministry has been working to link and concentrate dispersed capabilities. Centered on the M.AX Alliance, launched last September, the ministry is fostering a collaborative ecosystem that brings together manufacturers and AI firms, large corporations and small and medium-sized enterprises, academia and research institutes, and regional industrial complexes.

He added that this effort extends to cooperation with relevant ministries—such as the Ministry of Science and ICT, the Ministry of SMEs and Startups, and the Ministry of National Defense—partnerships with financial institutions through vehicles like the National Growth Fund and Industrial Growth Fund, and joint research and talent development with universities including Seoul National University and Changwon University.

Kim stressed that M.AX is not a project for a few ministries or limited industry‑academia‑research groups. It is a national undertaking that society as a whole must address for South Korea’s future, and he said the National Assembly and political parties have a particularly important role to play.

He called on both the ruling and opposition parties to cooperate in creating the regulatory framework, infrastructure and talent pipelines needed to accelerate M.AX. He also emphasized the importance of working with labor, given concerns that AI adoption could reduce jobs.

Recalling recent meetings with the heads of the two major trade union federations, Kim said he will listen closely to workers’ voices and engage labor leaders in finding solutions. “We will pursue M.AX in a way that strengthens industrial competitiveness and helps our companies grow, thereby expanding quality jobs rather than increasing job insecurity,” he said, urging labor to join the effort.

Kim reiterated that M.AX is about more than manufacturing: it affects youth employment, regional prospects and South Korea’s overall growth. “We will build a new future for Korea together—with the government, the National Assembly, businesses and financial institutions, universities and research institutes, labor and local communities, and the public. There is no time to hesitate. We will speed up M.AX,” he said.

Since May 11, the minister has used social media to outline why M.AX is necessary and how to pursue it; this post was the promised seventh and final entry. Kim has consistently identified M.AX as his top policy priority.

Sejong — Reporter Lee Won-bae lwb21@viva100.com

Daniel Kim
content@tenbizt.com

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