"By introducing a smart factory through Samsung's smart factory support program and automating most of the manual processes, productivity has increased dramatically. As we pioneer overseas markets, we are looking at sales of 46 billion won next year."
Baekje CEO Kim Cheol-yu said this about the results after taking part in the smart factory support program that Samsung is pursuing. Baekje, located in Hongseong County, South Chungcheong Province, is a food corporations that has produced tteokguk and rice noodles. According to Samsung, after introducing a smart factory, based on productivity that increased by about 33%, the company pioneered overseas distribution channels and grew into a strong small corporation that currently exports to about 20 countries.
Samsung Electronics held a ceremony on the 21st at Coex in Gangnam District, Seoul, to mark the 10th anniversary of the smart factory support program. This is a flagship social contribution program that Samsung has pursued since 2015 with the Ministry of SMEs and Startups, the Korea Federation of Small and Medium Enterprises (K-Biz), and others. Over the past 10 years, Samsung supported 3,450 small and medium-sized corporations nationwide through the smart factory support program. About 150 officials attended the event, including Vice Minister Noh Yong-seok of the Ministry of SMEs and Startups, North Jeolla Province Gov. Kim Kwan-young, Democratic Party of Korea lawmaker Huh Sung-moo, Korea Federation of Small and Medium Enterprises (K-Biz) Executive Vice Chairman Oh Ki-woong, and Samsung Electronics CR Division President Park Seung-hee.
Samsung began "Smart Factory 1.0," which supports small and medium-sized corporations in North Gyeongsang Province, and expanded the support nationwide starting in 2016. From 2018, it launched "Smart Factory 2.0," which, along with support for building smart factories, also supports ▲ market development ▲ workforce training ▲ technology support ▲ after-sales management. Since 2023, it has been promoting "Smart Factory 3.0," which supports data-based advancement.
Samsung is deploying more than 160 expert advisers with over 20 years of on-site manufacturing experience to support smart factory construction. The advisers stay on site for about two months, identify problems, propose customized solutions, and resolve issues such as process improvement and quality control. According to an analysis of the policy effects of the "Win-win Smart Factory Construction Support Program for Large and Small Corporations," which the Korea Federation of Small and Medium Enterprises (K-Biz) released in September 2022, after introducing a smart factory, ▲ sales increased 23.7% ▲ employment 26.0% ▲ research and development (R&D) investment 36.8%.
Wizess in Iksan, North Jeolla Province, a corporations that has produced agricultural machinery tractor cabins, said productivity increased by about 52% with the introduction of a smart factory. Wizess CEO Jeong Byeong-gyu said, "Based on the experience of innovation through the smart factory, we are now pursuing 'family innovation' in which partner companies grow together."
Samsung, together with local governments, is investing budgets to support the construction of smart factories by regional corporations. Since 2015, Samsung has supported the construction of smart factories for a cumulative 2,312 small and medium-sized corporations outside the Seoul metropolitan area. An evolved business model has also emerged in which local governments and corporations benefiting from smart factory support cooperate to build a "self-sustaining smart factory ecosystem."
Since 2023, North Jeolla Province has partially supported the expense that small and medium-sized corporations in the province must bear themselves to participate in building smart factories, and since 2024 it has launched the "Jeonbuk-style smart factory" project, separate from Samsung's smart factory program.
Vice Minister Noh Yong-seok of the Ministry of SMEs and Startups, who attended the smart factory 10th anniversary ceremony, said, "Samsung has been a reliable partner in manufacturing innovation, building smart factories with small and medium-sized corporations." North Jeolla Province Gov. Kim Kwan-young said, "I hope North Jeolla corporations will open a broader path to growth nationwide by building smart factories."
Meanwhile, together with the government, Samsung is holding the "2025 Smart Biz Expo" at Coex through Oct. 24 to strengthen the competitiveness of small and medium-sized corporations and help them open new sales channels. First held in 2016 and now in its ninth edition, the exhibition features 81 small and medium-sized corporations across various fields, including parts and materials, machinery and equipment, home appliances, and food and beverages, and offers everything from running exhibition booths to buyer consultations, live commerce broadcasts, and training.