Recruiting Metropolitan Governments to Support AI Transformation for SMEs

Ministry of SMEs and Startups to Select Five Metropolitan Governments
Average Support of 7 Billion KRW Each for Region-Led AI Transformation Project

The Ministry of SMEs and Startups announced on July 29 that it will be recruiting metropolitan local governments to implement the "2025 Region-Led AI Transformation" project, aimed at accelerating artificial intelligence (AI) adoption among local SMEs.

This new project, planned through the second supplementary budget for 2025, has a budget of 35 billion KRW. Five metropolitan local governments will be selected, each receiving an average of 7 billion KRW (up to 60% of the total project cost). The selected governments will support a variety of AI utilization and dissemination programs tailored to the characteristics of their regional industries.

The selected metropolitan local governments must match at least 40% of the total project cost, including the self-contribution from SMEs. The Ministry of SMEs and Startups also plans to provide differentiated funding based on evaluation results, in order to foster competition and maximize project outcomes.

Metropolitan local governments wishing to participate can apply with a variety of programs freely designed to reflect the characteristics of their local industries, such as AI solution development and distribution, AI proof-of-concept test beds, cloud-based AI environment construction, and capacity-building for corporate employees in AI utilization. For detailed information such as the business plan, inquiries can be made to the SME AI Utilization and Dissemination Task Force at the Korea SMEs and Startups Agency. Applications must be submitted to this contact point by August 29.

Han Seong-sook, Minister of SMEs and Startups, stated, "We hope that the rapid adoption and dissemination of AI by local SMEs will quickly enhance the productivity and competitiveness of participating companies," adding, "We will continue to make efforts to strengthen the AI capabilities of SMEs in the future."