The ATLAS prototype robot by Boston Dynamics, makes an appearance on stage during a press conference at the 2026 International CES, at the Mandalay Bay Convention Center in Las Vegas, Nevada on Monday, January 5, 2026. File. Photo by James Atoa/UPI | License Photo
Jan. 25 (Asia Today) — South Korea’s robotics industry leads the world in robot deployment but risks falling further behind Japan because of a low domestic production rate for key materials and components, a new report said.
The report, published Saturday by the Korea International Trade Association’s Institute for International Trade and Commerce Research, said South Korea ranks at or near the top globally in robot utilization, including first in robot density.
But it said South Korea’s supply chain remains vulnerable. About 71.2% of robot shipments in South Korea are concentrated in the domestic market, the report said, while Japan, the world’s second-largest installer of industrial robots, exports more than 70% of its shipments.
The report attributed the gap to structural differences in the two countries’ supply chains. It said South Korea relies on China for 88.8% of its permanent magnets, a critical material used in robot operation, and that its domestic production rate for materials and components remains around 40%.
Japan, by contrast, reduces supply chain shocks at the raw material and component stages through technologies such as recovering rare earths from scrap motors and through advanced materials technology for specialty steels and precision magnets, the report said.
It also said Japan is building more vertically integrated supply chains at the core component and module stages, citing global firms such as Harmonic Drive that dominate 60% to 70% of key component markets.
The report said South Korea’s low localization rate means that as finished robot production expands, imports of materials and components are likely to rise as well.
As a response, the report proposed a two-track strategy of “supply chain stabilization” and “new market leadership” to support sustained growth in South Korea’s robotics sector.
At the corporate level, it urged stronger joint research and development between companies that supply and use core materials and components, and efforts to secure rare earth-free technologies. It said the government should pursue measures such as sharing risks tied to domestic production and creating public demand.
Senior research fellow Jin Sil Moo-hyeop said shifting from a manufacturing-focused approach to a supply chain stabilization strategy will shape the industry’s future competitiveness, the report said.
— Reported by Asia Today; translated by UPI
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Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260125010011744
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