Ministry of SMEs and Startups Proclaims Vision with Five Regional Governments to Expand AX Adoption

Regional AI Grand Transformation Vision Proclamation Ceremony
Smart Manufacturing Innovation 3.0 Conference

The Ministry of SMEs and Startups announced that the regional 'AI Grand Transformation Vision Proclamation Ceremony' was held at the Changwon Convention Center on November 19 to promote the adoption and spread of artificial intelligence (AI) among local small and medium-sized enterprises (SMEs). This event was organized to support the rapid AI adoption and establishment, as well as the building of collaborative systems, for local SMEs in five regional governments selected for the region-led AI Grand Transformation Project: Gyeongnam, Daegu, Ulsan, Jeonnam, and Jeju. The event included a proclamation ceremony, the Smart Manufacturing Innovation 3.0 Conference, awards and presentations for outstanding AI transformation (AX) cases, commendations for contributions to manufacturing innovation, a roundtable between Scale-up TIPS operators and AI suppliers and demand companies, and an AI supplier investor relations (IR) session, among other activities.

The region-led AI Grand Transformation Project is a new initiative by the Ministry of SMEs and Startups, which secured a budget of 35 billion won through the second supplementary budget to accelerate AI adoption among local SMEs with low AI utilization rates. Through a public contest, five regional governments-Gyeongnam, Daegu, Ulsan, Jeonnam, and Jeju-were selected to implement AX utilization and dissemination projects autonomously planned to reflect the characteristics of their local industries.

At the regional AI Grand Transformation Vision Proclamation Ceremony, Gyeongsangnam-do announced its plan to revitalize the local economy by integrating AI into its core industries, such as machinery, aviation, and energy, through the 'Manufacturing-Specialized AI Grand Transformation' project. During the proclamation ceremony, which included the Ministry of SMEs and Startups, the Korea SMEs and Startups Agency, and the five regional governments, participants reaffirmed their commitment to bridging the AI gap for local SMEs and building a sustainable regional AI ecosystem through joint efforts between the central and local governments.

Through preliminary and final rounds held at 13 regional offices since August, awards-including ministerial commendations-were presented to 10 SMEs selected for their outstanding AX transformation and smart manufacturing implementation cases. Cho Hwansu, CEO of Cheonil Engineering, who received the grand prize, achieved a 42.3% reduction in defect rates and a 20.8% increase in productivity by introducing AI vision inspection for automobile parts quality control and AI-based predictive maintenance for equipment.

At the Smart Manufacturing Innovation 3.0 Conference, the Ministry of SMEs and Startups shared the 'AI-Based Smart Manufacturing Innovation 3.0 Strategy,' which is being promoted jointly with related ministries, with ecosystem stakeholders including suppliers and demand companies.

Two roundtable discussions, attended in person by Minister Han Sung-sook, were also held at the event to discuss ways to stimulate investment in the manufacturing sector and to listen to the challenges faced by SMEs in adopting AI on the ground. At the Scale-up TIPS R&D operator roundtable, participants discussed various collaboration strategies, including corporate discovery, investment, and nurturing strategies by the participating operator consortium, public-private cooperation measures for discovering and investing in promising local SMEs, challenges, and policy suggestions, in line with the advancement toward an all-stage corporate support system. The Ministry of SMEs and Startups plans to continue supporting the discovery and investment in promising local companies by selecting more than 20% of regional companies in the TIPS program and more than 50% in the Scale-up TIPS program.

The AI supplier-demand company roundtable provided an opportunity to discuss the current status and challenges of AI adoption among small manufacturing companies, the development of smart manufacturing specialist companies, and the future direction of the ecosystem, as well as to explore support measures for creating synergies between suppliers and demand companies.

Minister Han stated, "Holding various events such as the Vision Proclamation Ceremony, the Smart Manufacturing Innovation 3.0 Conference, supplier IR, and presentations of outstanding cases all at once is aimed at building a nationwide consensus on the importance of AI adoption and utilization and seeking ways to advance the entire ecosystem," and added, "The Ministry of SMEs and Startups will spare no effort to ensure that tangible effects of AX can be realized at the corporate level."