Korea Federation of SMEs, TIPA launch W122.9b AI manufacturing push with 48 projects

A 122.9 billion won ($86 million) program to help small and midsize manufacturers adopt AI has moved into full execution, with 48 selected projects launching at a kickoff meeting Tuesday.

The Korea Federation of SMEs and the AI Innovation Promotion Agency under the Korea Technology and Information Promotion Agency for SMEs (TIPA) held the kickoff meeting at the federation's headquarters in Yeouido, Seoul.

The Ministry of SMEs and Startups runs the program, which supports the development and commercialization of AI-applied products for use on manufacturing floors. The 48 selected projects will share the total budget of 122.9 billion won.

About 120 people attended Tuesday's meeting, including officials from the Ministry of SMEs and Startups, the Korea Federation of SMEs and the AI Innovation Promotion Agency, as well as executives and staff from participating companies — both adopting firms and lead suppliers. Attendees shared the program's direction, upcoming schedule and project management guidelines.

Jang Young-jae, a professor at the Korea Advanced Institute of Science and Technology, presented on core AI manufacturing technologies driving change in the industry and the outlook for commercialization. He also outlined considerations for applying AI to boost productivity and quality on the factory floor, and proposed ways to link projects with one another.

Participating organizations from the food, beauty and foundry sectors presented their project plans and strategies for spreading results. Discussions focused on designing AI models suited to each company's manufacturing processes and data environment, and on expanding the scope of application to other companies and industries after commercialization.

The meeting also included an open session in which participating organizations raised concerns and difficulties encountered during the AI transition. The Korea Federation of SMEs and the AI Innovation Promotion Agency plan to incorporate the feedback into future program operations and improvements to the support framework.

On Wednesday, practical training for project participants will be held at the ICC Hotel in Daejeon. The curriculum covers program procedures and detailed management standards, demand-oriented system analysis and design, accounting settlement and audit compliance.

Organizers plan to provide clear guidance on budget execution and settlement standards from the outset to reduce administrative burdens and trial-and-error during project implementation.

"This will be an opportunity to deepen participating organizations' understanding of the program and lay the groundwork for smooth execution," said An Gwang-hyeon, head of the AI Innovation Promotion Agency. "We will support every stage of the program so that AI transition results can be achieved quickly."

Yang Chan-hoe, head of the innovation and growth division at the Korea Federation of SMEs, said AI innovation must translate into stronger competitiveness for small and midsize manufacturers. "We will stay in close contact with the field so that results from individual companies can spread across industries and sectors," he said.