Contest accepting entries through Aug. 21 for AI transformation success stories
Entries judged on productivity gains, quality improvements and cost savings
Minister's commendations to go to standout contributors and organizations
The government is looking to identify small and medium-sized enterprises and small business owners that have used AI to achieve tangible results — such as higher productivity or lower costs.
The Ministry of SMEs and Startups and the Korea SMEs and Startups Agency said Tuesday they are accepting applications for the 2026 SME AI Transformation Best Practices Contest and nominations for the Regional SME AI Utilization and Diffusion Merit Award from Aug. 1 through Aug. 21. This is the second year the initiative has been held.
The contest targets SMEs and small business owners that have adopted AI technology and achieved measurable business improvements — including productivity gains, quality enhancements, cost reductions, sales growth or the creation of new business models.
Companies wishing to participate may submit an application and supporting documentation on their AI adoption case by email to the regional office of the Ministry of SMEs and Startups that covers their location.
The ministry and the agency will evaluate entries on the innovation, scalability and sustainability of each AI adoption case, selecting a total of 10 companies. The top winner and two runners-up, along with two additional excellence award recipients, will receive the minister's commendation, while five encouragement award recipients will receive a commendation from the agency's president.
Award recipients will receive bonus points in the selection process for the ministry's research and development support programs. Their AI adoption outcomes will also be compiled into a best-practices guide for other SMEs to reference when considering their own AI adoption.
The merit award program will recognize individuals and organizations that have contributed to spreading AI use among regional SMEs. Eligible candidates include those who participated in ministry AI policy initiatives — such as the "Region-Led AI Great Transformation" program — and helped accelerate AI adoption among local SMEs or contributed to building regional AI ecosystems.
A total of eight minister's commendations will be awarded: six in the individual category and two in the organization category. Individuals will be assessed on the innovation and impact of their AI adoption efforts and their contribution to supporting SME AI transformation. Organizations will be evaluated primarily on their regional AI project outcomes, collaborative frameworks and contributions to building an AI ecosystem.
Winners and honorees will be recognized at a year-end awards ceremony, where outstanding cases will be presented to share lessons learned.
A defining feature of this contest is that it evaluates not simply whether a company has introduced AI technology, but whether that adoption has translated into real business results. The focus is on outcomes verifiable at the company level — cost savings, sales growth and new business model creation, in addition to productivity and quality improvements. The initiative also aims to lower barriers to AI adoption by disseminating selected cases so other SMEs can use them as a reference.
Hwang Young-ho, the ministry's director general for technology innovation policy, said he hopes the contest and merit awards will help publicize AI adoption models that have delivered real results on the ground and spread the achievements of individuals and organizations that have worked to advance regional AI transformation. "We will continue to strengthen support so that SMEs and small business owners can use AI to boost their productivity and competitiveness," he said.
boo@heraldcorp.com
