Martial Arts: "Digital Transformation Essential to Enhance Korea's Manufacturing Competitiveness"

Korea International Trade Association and Korea Information Industry Federation Host 'DX Ignite, The Future of Smart Manufacturing and Logistics Conference Now'

There has been a claim that the speed of digital transformation (DX) must be accelerated to enhance the competitiveness of the domestic industry, which is based on manufacturing. It was also advised that active adoption of technology is necessary due to the significant benefits of expanding digital logistics.

On the 18th, the Korea International Trade Association (KITA) held the 'Digital Transformation (DX) Ignite, The Future of Smart Manufacturing and Logistics Conference,' jointly with the Korea Information Industry Association at the Trade Tower in Samseong-dong, Seoul. The event was attended by 200 companies interested in manufacturing and logistics DX.

In her opening remarks, Myungja Lee, Head of the Digital Innovation Division at KITA, said, "The manufacturing sector accounts for 27.8% of our country's Gross Domestic Product (GDP), which is the highest level among OECD countries," adding, "It forms the foundation of our economy, accounting for 84% of total exports." She continued, "There are concerns about the recent weakening of manufacturing competitiveness," emphasizing, "Our companies must strive to combine accumulated manufacturing capabilities with digital technologies to enhance productivity and synergy."

Yoonhwan Oh, Head of the New Industry Strategy Research Group at the Science and Technology Policy Institute, who gave a presentation, stated, "Smart manufacturing is becoming a reality and accelerating, especially in major countries," and explained, "To secure a competitive edge amid the trend of manufacturing innovation, companies should boldly increase investments in new innovations rather than holding excessive financial assets such as retained earnings."

Jihwan Song, Senior Researcher at the Software Policy Research Institute, pointed out, "The industrial structure is rapidly being reorganized due to DX," and stressed, "It is urgent to prepare plans to nurture talent who can be immediately deployed to the field by training existing personnel." He also said, "Relevant laws and systems must be established to ensure there are no restrictions on companies' adoption and utilization of software (SW) technologies."

Lee Myung-ja, Head of the Digital Innovation Division at the Korea International Trade Association, is delivering the opening address at the "DX Ignite, The Future Made Present: Smart Manufacturing and Logistics Conference" held on the 18th at Trade Tower in Samseong-dong, Seoul. / Photo by Korea International Trade Association

At the event, specific business cases leading DX in the manufacturing sector included 5th generation mobile communication (5G) specialized networks and artificial intelligence (AI) technologies. Deokgeun Park, CEO of Wizcore, predicted, "The introduction of 5G specialized networks will promote innovation in various fields such as wind power generation, mining, and aquaculture." Jaesik Choi, CEO of Inizi, emphasized, "Company D, which operates domestic boiler power plants, applied explainable AI and achieved 500 days of trouble-free operation for the first time in a large domestic power plant."

Introducing DX in the logistics sector is also expected to bring several advantages. Bonggi Choi, Executive Director at Samsung SDS, said, "With the adoption of digital logistics, errors in inventory tracking decrease, and costs are reduced through transportation optimization and warehouse automation," emphasizing, "It helps secure supply chain competitiveness by reducing the shipper's sales opportunity losses by 65-70% and inventory by 35-70%."

Junghyun Moon, Executive Director of the Korea Information Industry Association, said during a panel discussion, "Generative AI is expected to have a very significant impact on industries and companies," adding, "Manufacturing and logistics companies must incorporate generative AI in the DX process to improve productivity, process analysis, and management efficiency."

KITA plans to provide related information and implement customized support tailored to individual company conditions and industry groups in the future, as the overall DX promotion in the industry is still in its early stages.