"Mid-sized Smart Factory Advancement Completely Absent... Quality Over Quantity Priority"

[Asia Economy Reporter Moon Hyewon] It has been found that 80% of small and medium-sized enterprises (SMEs) smart factories introduced with government support remain at the ‘basic stage’ level, which monitors real-time production information. In particular, since the ‘advanced stage’ is virtually nonexistent, there are calls for differentiated support policies targeting SMEs with greater investment capacity and the necessity of collaboration with large corporations.

According to the report titled ‘From Smart Factory Distribution and Expansion to Smart Business Policy’ published by the Small and Medium Business Research Institute on the 5th, 80% of SMEs’ smart factories introduced with government support are at the ‘basic stage’ that monitors real-time production information, 18.7% are at ‘intermediate stage 1,’ and 1.5% are at ‘intermediate stage 2.’

The institute pointed out, “Concerns and criticisms are being raised about policies focused on quantitative expansion of smart factory distribution,” adding, “The universal support method that provides assistance regardless of the intention to build has limitations for further advancement, so differentiated policies to promote smart factory advancement according to SMEs’ innovation capabilities are necessary.”

The Ministry of SMEs and Startups plans to invest 415 billion KRW this year to distribute 5,600 smart factories. To achieve a 100% smart factory distribution rate by 2030, it plans to enact the ‘Special Act on Innovation Growth and Competitiveness Enhancement of Manufacturing’ and the ‘Special Act on Promotion of Smart Manufacturing Innovation for SMEs.’

Researcher Park Jaesung of the Small and Medium Business Research Institute emphasized, “An increase in production without guaranteed sales can lead to burdensome excess inventory, so securing sales channels is essential,” and stressed the need to strengthen policies linked to sales channels. He also analyzed that in industries with high added value created by the convergence of technology development and manufacturing, such as biopharmaceuticals and nanomaterials, support projects for SME technology development should be organically linked and promoted.

There was also a claim that a culture of additional co-growth with large corporations needs to be established. Researcher Kang Jaewon of the Small and Medium Business Research Institute said, “As seen in Samsung’s mask production support case, technological support from large corporations produces visible effects,” and added, “SMEs within the supply chain prefer to build smart factories through collaboration with contracting companies rather than introducing them independently.”