The Ministry of SMEs and Startups is accelerating the "AI transition (AX)" of small and midsize manufacturers. It plans to commercialize artificial intelligence (AI) application products that work immediately on factory floors within two years.
The Ministry of SMEs and Startups (MSS) said on the 22nd that it will push the "AI application product rapid commercialization support program" together with the Smart Manufacturing Innovation Promotion Team and the Korea Federation of Small and Medium Enterprises. It is a key execution task of the recently released "AI-based Smart Manufacturing Innovation 3.0 Strategy."
The government has set goals of supplying 12,000 smart factories, raising the adoption rate of AI in manufacturing by 10%, reducing industrial accidents by 20%, and fostering 500 specialized manufacturing AI companies. This program focuses on "on-site application" among those goals.
The total program size is 87 billion won. It will invest 64.5 billion won this year and 22.5 billion won next year to support 36 projects over two years. The government will cover up to 70% per project, with the private sector matching 30%. It is a consortium model centered on small and midsize manufacturers, with manufacturing AI technology companies, universities and research institutions, and regional innovation institutions participating.
The program is divided into two tracks. The "manufacturing-site problem-solving type" directly addresses recurring risks of safety accidents, quality defects, production delays, and labor shortages in processes with AI. The "regional industry fostering type" builds a successful model around a regional anchor company and then spreads it to partners and peers in the same industry. It is a structure aimed at transitioning the industrial ecosystem beyond supporting individual corporations.
There are four support areas. They include "industrial safety," which detects and prevents major accident risk factors in advance; "process innovation," which optimizes production processes; "management innovation," which automates repetitive tasks; and "consumer experience type," which improves user experience. The program consists of 16 detailed themes in total.
An official at the Ministry of SMEs and Startups (MSS) said, "This program focuses on developing AI products that work right away in factories," and added, "We will quickly spread successful cases to boost manufacturing competitiveness." The federation also said it will identify projects in root industries and cooperative associations and support subsequent diffusion.
This program will be jointly promoted by 10 ministries, covering not only manufacturing but also agriculture, livestock and fisheries; bio, health and environment; security and defense; and land and transportation. Detailed information will be released through a consolidated notice in Mar.