Full-scale Launch of AI Transformation Support Program for SMEs in Manufacturing: "From Safety to Production and Management"

Ministry of SMEs and Startups, Smart Manufacturing Innovation Promotion Group, and Korea Federation of SMEs to Promote Commercialization of Manufacturing AI

The Ministry of SMEs and Startups, the Smart Manufacturing Innovation Promotion Group, and the Korea Federation of SMEs announced on February 22 that they will promote the "AI Application Products Fast Commercialization Support Program" to fully accelerate the AI (artificial intelligence) transition of small and medium-sized manufacturing companies.

This program is a key execution task of the recently announced "AI-based Smart Manufacturing Innovation 3.0 Strategy" by the Ministry of SMEs and Startups. Its goal is to simultaneously enhance safety, productivity, and quality competitiveness at small and medium-sized manufacturing companies by supporting the rapid development and commercialization of AI products and services that can be used immediately on-site. The total project size is 87 billion won, and a total of 36 projects will be supported over two years.

For each project, the government will fund up to 70%, with the private sector bearing 30%. The support targets are consortia centered on small and medium-sized manufacturing companies and mid-sized manufacturing companies, in which manufacturing AI technology companies, regional innovation institutions, universities, and research institutes participate together.

In particular, this program will be implemented in two types to generate outcomes that can be clearly felt on-site. The "manufacturing site problem-solving type" will consist of projects that directly address issues such as the risk of industrial accidents, quality defects, production delays, and labor shortages that small and medium-sized manufacturing companies experience in actual processes, using AI technologies. The "regional industry development type" will create successful AI models around anchor companies that represent each region and then spread them to partner companies and other companies in the same industry.

The support areas are divided into four themes: the "industrial safety field," which detects and prevents risk factors for serious industrial accidents in advance and improves the work environment based on AI; the "process innovation field," which optimizes production processes to improve product quality and productivity; the "management innovation field," which automates repetitive work to improve overall business operations; and the "consumer experience field," which enhances user experience. These are further broken down into a total of 16 detailed themes.

Small and medium-sized manufacturing companies with demand for AI transformation (AX) are paying attention to the fact that the policy is designed not just for simple equipment automation, but to support the application of AI across safety, production, and overall management. The Korea Federation of SMEs will participate as a managing organization for projects related to root industries and cooperatives, discovering AX projects that reflect on-site difficulties and planning follow-up dissemination programs.

Yang Chanhoe, Head of the Innovation Growth Division at the Korea Federation of SMEs, said, "For the AI transition of our industries, it is necessary not only to foster leading companies, but also to rapidly expand AI adoption by sector and field among small and medium-sized enterprises, where AI utilization is currently low," adding, "We hope that AI models capable of resolving challenges at small and medium-sized manufacturing sites will be rapidly disseminated, focusing on the successful cases nurtured through this program."

Meanwhile, this program is a joint initiative of 10 government ministries, divided into the fields of manufacturing; agriculture, livestock, and fisheries; bio, health, and environment; security and defense; and land and transportation. Detailed information will be provided through an integrated announcement around March.