<기사제목>Ministry of SMEs and Startups to Establish 6,000 Smart Factories This Year with a Budget of 437.6 Billion KRW

Integrated Announcement for Smart Factory Distribution Support Project Recruitment
Targeting Distribution of 30,000 Smart Factories by 2022
"Focused on AI and Data-Based Qualitative Advancement"

[Asia Economy Reporter Kim Bo-kyung] The government will invest 437.6 billion KRW this year in the smart factory dissemination support project targeting small and medium-sized enterprises (SMEs) and mid-sized companies.

The Ministry of SMEs and Startups announced on the 21st a unified recruitment notice for SMEs and mid-sized companies wishing to participate in the '2021 Smart Factory Dissemination Support Project' for smart manufacturing innovation.

This unified announcement consists of a total project budget of 437.6 billion KRW, including ▲Smart Factory Construction and Advancement (400.2 billion KRW) ▲Robot Utilization Manufacturing Innovation (18.1 billion KRW) ▲Smart Meister (7 billion KRW) ▲Smart Factory Aftercare (4.4 billion KRW) ▲Smart Capability Enhancement (3.3 billion KRW) ▲Cloud-based Solution Development (3.2 billion KRW) ▲Smart Factory Level Verification (1.4 billion KRW).

Specifically, 400.2 billion KRW will be invested this year to disseminate more than 6,000 smart factories through public-private cooperation.

In particular, this year, the level of support for dissemination will vary according to the degree of smartification. For companies demanding advancement, government support will be increased from the current 150 million KRW to 200 million to 400 million KRW to promote qualitative advancement.

The coordinator support system, which provides one-on-one close support by smartification experts, will be expanded from existing advanced companies to basic-level construction companies lacking manpower and funds.

SMEs and mid-sized companies wishing to improve processes using collaborative robots can apply for the 'Robot Utilization Manufacturing Innovation Support' project. Reflecting the high demand for robots in manufacturing sites, this year’s budget has been significantly increased to 18.1 billion KRW from 8.5 billion KRW last year, supporting about 57 companies.

Additionally, 7 billion KRW will be provided to 800 companies as Smart Meister support to resolve on-site difficulties related to the introduction and operation of smart factories for SMEs and mid-sized companies.

Asia Economy DB=Photo by Hyunmin Kim kimhyun81@

Furthermore, focusing on small enterprises lacking funds and manpower, 50% of after-service costs such as smart factory breakdowns, defects, solution upgrades, and key component replacements will be supported. The total support scale is 4.4 billion KRW, and this project was newly established this year to provide customized aftercare for continuous performance creation.

To enable SMEs to receive professional consulting related to smart factories, a budget of 3.3 billion KRW has been allocated to the 'Smart Capability Enhancement' project, supporting about 860 companies.

The Ministry of SMEs and Startups is focusing on disseminating 30,000 smart factories by 2022. By the end of last year, 19,799 smart factories were disseminated, exceeding the initial target of 17,800. The demand for smart factories surged due to the acceleration of digital transformation in manufacturing.

Kim Il-ho, Head of the Smart Manufacturing Innovation Planning Group at the Ministry of SMEs and Startups, stated, "This year, based on the achievements of expanding the smart manufacturing base, we plan to focus on shifting from quantitative dissemination to qualitative advancement based on artificial intelligence and data."

He added, "We will do our best to innovate manufacturing, the foundation of our economy and industry, based on smart factories to enhance global competitiveness, strengthen support in the pharmaceutical and medical device sectors, and further spread the success model of K-Smart Quarantine that citizens can feel."

Meanwhile, the unified announcement and detailed information on each support project can be found on the Ministry of SMEs and Startups website or the Smart Factory Project Management System of the Korea Technology and Information Promotion Agency for SMEs (Smart Manufacturing Innovation Promotion Group). Applications can be submitted online through the Smart Factory Project Management System.