The Ministry of SMEs and Startups and the Korea Technology and Information Promotion Agency for SMEs (TIPA) will begin full-fledged support to strengthen the competitiveness of smart factory suppliers. The two agencies said they will recruit participants for the "2026 first smart factory supplier capability assessment support program" from Apr. 27 to May 29.
In smart factory implementation projects, the technological prowess and on-site understanding of suppliers are key factors that determine success. While the number of suppliers has recently increased, some have been criticized for limitations in effectively solving on-site problems for demand-side clients due to small scale and lack of technological capacity. Accordingly, there has been a steady call for objective capability assessments and systematic competitiveness enhancement to stably lead digital transformation (DX) on manufacturing sites.
The Ministry of SMEs and Startups (MSS) has pursued the "supplier capability assessment support program" since 2023 to strengthen suppliers' capabilities. In 2025, it adopted the Korea Technology Finance Corporation (KOTEC)'s AI-based technological evaluation model (KTRS-FM) to further improve the objectivity and reliability of assessments. As a result, the number of corporations earning top grades (Level 3- or higher) in the capability assessment increased from 75 in 2023 to a cumulative 200 in 2025, showing tangible outcomes.
The 2026 capability assessment support will operate on two tracks: an "integrated capability assessment" and a "manufacturing AI development capability assessment." The integrated capability assessment comprehensively evaluates three areas—management, technology, and project management—of suppliers, and supports in-depth diagnostics of technological capacity and capability-building plans in one go.
The manufacturing AI development capability assessment separately evaluates the innovativeness and on-site applicability of manufacturing AI solutions held by corporations. In particular, it was used as the document review requirement for the "1st manufacturing AI solution contest" held on Dec. 10 last year and was used to verify the capabilities of 132 applicant corporations.
Corporations that undergo the capability assessment receive additional points by grade when applying for smart factory dissemination and expansion projects. In addition, outstanding corporations can receive various benefits, including registration as excellent suppliers in the project management system, eligibility to apply for designation as specialized corporations in smart manufacturing technology, and preferential interest rates for commercialization funds from Hana Bank.
This supplier capability assessment is linked to the upcoming "smart manufacturing technology specialized corporation designation system." The Ministry of SMEs and Startups (MSS) plans to designate suppliers that meet legal requirements as specialized corporations starting in the second half of this year, and suppliers that secure an excellent grade of "Level 3-" or higher in the capability assessment will be eligible to apply as specialized corporations.
Kwon Sun-jae, director-general for regional corporations policy at the Ministry of SMEs and Startups (MSS), said, "The success or failure of the digital and AI transition on manufacturing sites starts with the proven technological strength of suppliers," and added, "We will provide policy support so that the excellent corporations identified through the capability assessment can grow into specialized smart manufacturing corporations."