Japanese Local Governments and Institutions Turn to Korea for Regional Solutions
AI Technology and Execution Capabilities Drive Market Entry Through PoC
On September 30, the Korea Trade-Investment Promotion Agency (KOTRA) and Japanese local governments will hold a Digital Transformation (DX) Partnership Forum in Tokyo, Japan. The event will be attended by 15 Japanese local governments, related organizations, and around 20 Korean companies operating in Japan.
Exterior view of the headquarters of the Korea Trade-Investment Promotion Agency (KOTRA). Provided by KOTRA
The forum has been organized to accelerate problem-solving using artificial intelligence (AI) and digital technologies. Proof of Concept (PoC) projects in Japan will also be discussed. These projects have recently become a gateway for Korean AI and digital innovation companies to enter the Japanese market. Major Japanese local governments are facing a variety of challenges, including an aging population, labor shortages, aging infrastructure, and issues related to disasters and the environment. In response, they are seeking solutions through DX PoC competitions utilizing AI and digital technologies. By participating in these projects and demonstrating their technological capabilities, Korean companies can secure valuable references for entering the Japanese market and potentially expand their global business based on these achievements.
Recently, as the number of tourists traveling between the two countries has reached 12 million, human and cultural exchanges have expanded, further boosting the atmosphere for economic cooperation. Reflecting this trend, representatives from major Japanese local governments such as Nagoya, Shizuoka Prefecture, Shibuya Ward in Tokyo, Yokohama, Kobe, and Okinawa Prefecture took the lead in introducing their PoC projects at the forum. Other regions, including Hokkaido, Tokyo Metropolitan Government, Kyoto, and Fukuoka, also participated as observers and expressed strong interest in collaborating with Korean companies.
Since 2021, KOTRA has been identifying DX project needs for major Japanese local governments and supporting Korean companies' participation in PoC projects. Currently, four PoC projects are underway in three cities, and KOTRA is collaborating with eight local governments. In particular, following last month's Korea-Japan summit, where the need for joint responses to social issues such as low birth rates, an aging population, and metropolitan concentration was emphasized, KOTRA's Japan Regional Headquarters plans to further expand cooperation models between Korean companies and Japanese local governments based on DX PoC projects.
Kang Kyungsung, President of KOTRA, stated, "Through this partnership forum, I hope that both countries, which share common challenges, will create new models of cooperation as partners sharing experiences and technologies." He added, "KOTRA will serve as a platform to lead Korean companies with outstanding AI and digital technologies into the Japanese market."
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