South Korea aims to build world's first physical AI port by 2035

The government is moving to build "physical AI ports" — facilities where AI autonomously monitors and manages all port operations. The plan calls for piloting the technology at Gwangyang port before developing Jinhae New Port into a world-class physical AI port, then rolling the model out to major ports nationwide and into overseas markets. The goal is to raise port productivity by 30 percent and generate 36 trillion won ($24.4 billion) in production-inducing effects by 2035.

The Ministry of Oceans and Fisheries unveiled the "Physical AI Port Strategy" Thursday at a science and technology ministerial meeting held at Government Complex Seoul, developed jointly with the Ministry of Science and ICT and other related ministries. A physical AI port goes beyond conventional automated ports: AI continuously perceives and assesses conditions across the entire facility, autonomously controls equipment and optimizes operations in real time — representing the next generation of smart port infrastructure.

The ministry set three headline targets for 2035: securing core physical AI technologies, raising port productivity by 30 percent, and capturing a 10 percent share of the global port equipment market. Gwangyang port will serve as the primary technology testing ground, while Phase 1 of Jinhae New Port — due for completion in 2032 — will be built as the flagship physical AI port model before expanding into a Phase 2 project in 2040. The initiative is expected to create an AI port technology market worth around 2.5 trillion won.

To achieve those goals, the ministry will pursue four strategic pillars: building the technological foundation for physical AI ports, driving innovation at ports and their hinterland complexes using domestically developed technology, fostering an industrial ecosystem, and overhauling the regulatory and implementation framework. On the technology side, the government plans to develop fully autonomous systems enabling port cranes and automated guided vehicles to perceive their surroundings and operate independently, while also eliminating human involvement in high-risk tasks such as securing and releasing container locking devices and handling mooring lines. An AI terminal operating system — AI TOS — will also be developed to analyze the real-time movements of vessels, port equipment and trucks and optimize work sequencing. The ministry is also considering establishing a research body at Gwangyang port, tentatively named the Advanced Port Technology Institute, which would link the physical port with a virtual simulation environment to support domestic firms through data collection, technology demonstration, and standards and performance certification.

The hinterland complex at Jinhae New Port will house a port-specialized AI data center and a smart shared logistics center, and will be developed into a "P.AX (Port AX) cluster" integrating manufacturing, port and logistics operations. The government, port authorities, port operators, and equipment and systems companies will form a unified team to develop a "K-Physical AI Port Solution," with plans to pursue package exports through joint projects including one with the UAE.

Through the strategy, the ministry aims to establish Jinhae New Port as a leading "K-Physical AI port," then replicate the model at ports across the country to boost productivity by 30 percent and eliminate safety accidents entirely. The government also intends to restore the competitiveness of the port technology industry using domestically developed solutions, achieve technological self-reliance, and cultivate a physical AI industrial ecosystem. Fiscal investment of around 3.3 trillion won through 2035 is projected to generate 36 trillion won in production-inducing effects, 12 trillion won in value-added effects, and 110,000 jobs.

"There is still no clear global leader in physical AI ports, which means now is the opportunity for South Korea — a country with strengths in both manufacturing and AI — to seize the technology and the market," Oceans and Fisheries Minister Hwang Jong-woo said. "We will actively support the entire process, from technology development and commercialization to innovation at our own ports and entry into overseas markets, to strengthen the country's logistics competitiveness and help South Korea become one of the world's top three AI powers."