South Korea’s manufacturing sector is accelerating its push into AI-powered factory automation, as companies race to integrate robotics, industrial software and real-time operational data into unified production systems designed for large-scale deployment.
LG CNS, the IT services and enterprise software arm of South Korea’s LG Group, on Wednesday unveiled a robotics integration platform called “PhysicalWorks,” positioning the company to play a larger role in what the industry increasingly describes as the next phase of physical AI.
The launch reflects a broader shift underway inside South Korean industry. Rather than focusing solely on building individual robots, companies are increasingly trying to develop systems capable of coordinating fleets of machines across factories, warehouses and logistics facilities through AI-based orchestration software.
At an event held at LG Science Park in Seoul, LG CNS demonstrated multiple robots — including humanoid, quadruped and wheeled machines — operating simultaneously in a logistics environment without direct human intervention. AI software monitored site conditions in real time, assigned movement paths and coordinated tasks between the robots to avoid collisions and maintain workflow efficiency.
The demonstration featured robots developed by Bear Robotics, a Silicon Valley-founded robotics company created by Korean entrepreneurs, alongside systems from Dexmate, Unitree Robotics and Deep Robotics.
Executives said the company’s “PhysicalWorks” platform combines robot data collection, AI training, simulation and integrated operations management into a single framework. The system uses virtual 3D industrial environments to simulate deployments before robots enter production facilities, reducing rollout timelines from several months to as little as one or two months, according to the company.
LG CNS said facilities operating roughly 100 robots could improve productivity by more than 15% while cutting operating costs by as much as 18% using the company’s AI-based operational management software.
The company emphasized that its strategy differs from robotics manufacturers focused primarily on hardware. Instead, LG CNS is concentrating on software integration and industrial operations infrastructure, areas where South Korean manufacturers hold deep operational experience after decades of dominance in sectors such as semiconductors, batteries, shipbuilding and consumer electronics.
That industrial background is becoming increasingly important as the robotics sector moves beyond standalone machines toward fully connected factory ecosystems.
While U.S. companies have dominated much of the global conversation around generative AI and humanoid robotics, South Korean firms are attempting to leverage a different advantage: large-scale manufacturing data and existing factory infrastructure already optimized for automation-heavy production environments.
LG CNS said it is currently conducting more than 20 proof-of-concept robotics projects across industries including electronics, logistics, batteries and shipbuilding. The company plans to expand systems first tested in South Korean factories into overseas operations run by LG Group affiliates and global manufacturing partners.
Executives also signaled additional investments tied to physical AI and robotics software. LG CNS said it has already invested in robotics-related companies including Skilled AI and Dexmate and is actively pursuing further acquisitions and strategic investments to strengthen its industrial AI capabilities.
A senior company executive said LG CNS is currently in discussions involving a U.S. investment target and expects to announce the outcome within a month.
The company’s expansion comes as manufacturers globally face growing pressure to offset labor shortages, rising operational costs and intensifying competition through automation technologies increasingly powered by AI agents rather than traditional rule-based systems.
For South Korea, the push carries broader strategic importance. The country’s export-driven economy remains heavily dependent on advanced manufacturing, making the transition toward AI-managed industrial systems not only a technology race, but a question of long-term industrial competitiveness.
