The Ministry of SMEs and Startups and the Korea SMEs and Startups Agency (KOSME) said on the 4th that they are recruiting metropolitan local governments to newly join the "region-led artificial intelligence (AI) great transition" project.
The region-led AI great transition is a project being pursued to promote the use and spread of AI by regional small and venture businesses and to narrow the AI gap between regions.
According to 2024 data released by the Korea Chamber of Commerce and Industry and the Korea Institute for Industrial Economics & Trade (KIET), the AI utilization rate was 40.4% in the greater Seoul area but remained at 17.9% outside the capital region. Regional small businesses lack AI specialists and infrastructure, making it necessary to craft policy responses that reflect local conditions and industrial characteristics.
The Ministry of SMEs and Startups (MSS) and the Korea SMEs and Startups Agency (KOSME) selected five metropolitan local governments last year (South Gyeongsang, Daegu, Ulsan, South Jeolla, Jeju) and are pushing for regional AI transition. This year, two new regions will be selected.
For the metropolitan local governments newly selected this year, a total of 14 billion won in national funds will be invested, supporting the project at an average scale of 7 billion won per region. The total project cost will consist of national funds, local funds, and self-contributions at a 6:4 ratio. Of this, local funds must account for at least 20% of the total project cost.
Metropolitan local governments wishing to participate in the project may design and apply for programs such as developing and distributing AI solutions to promote the use and spread of AI by regional small businesses, building AI-use infrastructure, and training AI talent.
Project plans received by the 10th of next month will be evaluated on paper and in person for implementation capacity and expertise, feasibility, and whether they reflect regional industrial characteristics, and two outstanding metropolitan local governments will be selected in the final round.
Park Yong-sun, director general for small business policy, said, "AI is a key element that goes beyond technology adoption to fundamentally enhance the competitiveness of regional industries and small businesses and improve the sustainability of regional economies," adding, "Through the region-led AI great transition project, we will accelerate the AI transition of regional small businesses and support the creation of a self-sustaining AI ecosystem in which regions grow on their own."