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South Korea Plans More Than 5 Trillion Won for SME Factory AI by 2030
South Korea’s Ministry of SMEs and Startups says it plans to invest more than 5 trillion won in smart-manufacturing innovation by 2030. Its strategy aims to support digital transformation at 30,000 small and midsize manufacturers and AI ado
AI.info Team · Written with AI · fact-checked ·
South Korea’s Ministry of SMEs and Startups says the government plans to invest more than 5 trillion won in smart-manufacturing innovation by 2030. The ministry announced its “Physical AI Expansion Strategy for Small Manufacturing” on Oct. 29 at the 16th National Policy Coordination Meeting, held at Chong Kun Dang in Cheonan, South Chungcheong Province.
The strategy links digital transformation, AI transformation and robot transformation in what the ministry calls a “3X strategy.” Data gathered through digital upgrades is intended to connect equipment and processes, support AI analysis and decisions, and enable robots to act in factories. The ministry says the strategy is designed to make small and midsize manufacturers participants in physical-AI testing and adoption.
Targets for digital upgrades and AI adoption
By 2030, the ministry aims to support digital transformation at 30,000 small and midsize manufacturers and AI adoption at 6,000. It plans to raise the digital-transformation rate at small and midsize manufacturing sites to 50% and the AI-adoption rate to 10%. Support for companies adopting the technology will be staged according to their capabilities: firms with limited AI foundations would receive help building basic capabilities, while companies with stronger foundations would be supported in advancing their use of AI.
The strategy also calls for integrated physical-AI demonstrations spanning equipment, production processes and entire factories. The ministry says these projects will test how AI and robots can work together in real production environments and help develop models suited to smaller companies’ production conditions. It also plans to connect technologies developed through national strategic projects with the smart-factory deployment system.
Suppliers and factory data
The government plans to develop a pool of 500 smart-manufacturing specialist companies by 2030. The ministry says selected technology suppliers would receive preference in government support programs and assistance with technology development, demonstrations and overseas expansion. Its planned technology roadmap covers automation, connectivity, information systems and AI, including robots, sensors, manufacturing-execution systems and digital twins.
The strategy also treats manufacturing data as a foundation for AI development. The ministry plans to collect and standardize data generated through government-supported projects to improve information exchange between equipment and systems. It says data valuation and recognition of data as an in-kind contribution in government programs are intended to help companies use their manufacturing data while reducing their cash contribution.
The existing Korea AI Manufacturing Platform, known as KAMP, is to be upgraded as “Manufacturing AI 24.” The ministry describes a planned cycle in which data is collected and standardized, used to develop and improve AI models, and returned to factory use; data from those applications can then inform further model improvements.
Regional infrastructure and workforce
The plan calls for linking regional AI hubs, including manufacturing AI data centers, with demonstration infrastructure to support companies’ AI development, testing and adoption. It also includes education connected to regional industries at four science and technology institutes, on-site internships for young people, and training for current employees to improve their ability to operate AI systems.
Minister of SMEs and Startups Lee So-young said:
“중소기업의 제조AI혁신은 대한민국 피지컬 AI 선도국가 도약의 핵심”
The ministry’s strategy sets out targets for company support, supplier development and regional infrastructure through 2030, while describing the connected use of data, AI and robots as its approach to expanding physical AI in smaller manufacturers.