The Ministry of SMEs and Startups is stumbling from the start with its first "AI transition (AX) program for small merchants" since the launch of the Lee Jae-myung administration. That is because securing "mentor corporations," which will determine the success or failure of the program that applies AI technology to small merchants to upgrade their businesses, is proving difficult.
The Ministry of SMEs and Startups (MSS) will invest about 14.4 billion won this year to push the "AI utilization support program for small merchants." Minister Han Seong-sook of the MSS has stressed that policies for small and medium-sized enterprises and small merchants should shift from management stability to a "growth" phase.
The key strategy for this is AI-based innovation. On the 3rd, the Ministry of SMEs and Startups (MSS) unveiled the integrated AI policy brand "AI+ for all," setting a direction to integrate AI across the management of corporations and small merchants to boost outcomes such as productivity and sales.
Under the MSS, the Korea Small Enterprise and Market Service on the 8th began recruiting mentor corporations with AI solutions, along with the lead agency that will oversee the AI utilization support program for small merchants.
The core of this program is the "mentor corporations" that will lead AI adoption and on-site application for small merchants. Mentor corporations will go directly into the field on behalf of small merchants lacking AI capabilities, conduct consulting, and provide close support throughout the entire process from solution application to operation.
The focus is to go beyond existing digital transformation (DX) such as simple kiosk installation or website creation support, and to integrate AI into small merchants' businesses to lift sales and productivity. AI application areas are diverse, including management, automated customer response, product development, and marketing optimization.
However, the major big tech corporations the MSS had hoped for did not join this program. Naver and Kakao are prime examples. The two corporations took part in AI utilization training for small merchants that the MSS conducted late last year, but did not join this program at the stage of actual business application.
Naver proposed participation on the condition of centering on its own AI model, but it was reported not to have joined because that did not align with the program's aim to avoid dependence on a specific solution and to guarantee small merchants' choice. Kakao likewise did not express a separate intention to participate.
With Naver and Kakao out, the Ministry of SMEs and Startups (MSS) extended the deadline for recruiting mentor corporations from the 23rd of this month to the 6th of next month.
On the ground, whether mentor corporations can be secured is cited as the key variable that will determine the program's performance. That is because this program aims not at simple dissemination of AI technology but at AX that changes the very business structure of small merchants.
For example, in the case of a small merchant who makes custom insoles, it is possible to advance by photographing the customer's foot, analyzing pressure distribution with AI, and producing products tailored to each person's foot shape. Because AI must be applied across the entire process from product development to service delivery in this way, the role of professional mentor corporations that design and execute this is essential.
The AI utilization support program for small merchants is also compared with the MSS's "smart factory transition program for SMEs." Samsung Electronics participated as a mentor, leading productivity improvements at SMEs and earning praise for boosting policy effectiveness. On the SME shop floor, the smart factory transition program is cited as a key case of strengthening manufacturing competitiveness.
Some observers say LG, which has its own large-scale AI model "EXAONE," could be a strong mentor corporation to lead AX for small merchants. However, it is said that the company has not participated in this program so far.
A small merchant expert said, "For small merchant AX, technology matters, but on-site application capability is key. If participation by leading corporations to drive this is lacking, the program is likely to remain a formality," and added, "We need to encourage broad participation not only from big tech corporations but also from industry-specific AI corporations in sectors such as beauty and food."
The expert added, "As the first AX program for small merchants, it is not yet large in scale, but it is necessary to create early success stories, increase the budget, and expand the program step by step."