South Korea Allocates 5 Trillion Won for Smart Manufacturing and AI Adoption

The Office for Government Policy Coordination announced a plan to direct more than 5 trillion won toward smart manufacturing innovation by 2030. This initiative targets digital upgrades for 30,000 small manufacturers and AI adoption for 6,000. The plan aims to increase the digital transition rate from 30% to 50% and AI adoption from 1% to 10%. Roland Busch, President and CEO of Siemens, advised that smaller firms should first organize factory data and set staged digitization goals.

The government funding addresses pressures cited by the Ministry of Trade, Industry and Resources, including a shrinking working-age population and slower labor-productivity growth. The Ministry of SMEs and Startups plans to align assistance with companies’ readiness, helping firms with limited digital capacity establish basic capabilities. Under the proposal, eligible data contributions to government programs may count in kind, helping reduce companies’ cash outlays.