Korea to more than double manufacturing AI workforce training for SMEs, expand youth job support

The government plans to more than double the number of manufacturing AI practitioners trained to support small and medium-sized enterprises' transition to artificial intelligence, while also strengthening financial support for young workers at regional SMEs and incentivizing youth employment outside the Greater Seoul area.

The Ministry of SMEs and Startups announced Friday its fifth basic plan for SME workforce support, covering 2026 to 2030. The plan focuses on developing and supplying talent suited to SME workplaces in response to the AI transformation, while simultaneously addressing labor shortages at regional SMEs and youth employment challenges.

Under the plan, the number of practitioners trained to develop manufacturing AI solutions for small and medium-sized manufacturers will expand from 600 this year to about 1,600 next year. Internship periods for SME employment will also be extended from the current three months to 12 months next year.

A new "Manufacturing AI Fellow" training program will be launched next year to develop 500 specialists. KAIST and three other science and technology institutes will develop and operate specialized curricula for AI transformation in small and medium-sized manufacturing settings. Graduates will receive a micro-degree in manufacturing AI transformation and be connected to job placements at manufacturing firms.

The government also plans to broaden the foundation for AI specialist training. It will establish 10 AI-focused contract departments at universities this year and expand that number to 30 by 2030. To raise AI proficiency among SME employees, manufacturing AI education centers will open this year to provide hands-on AI training to 10,000 SME workers annually.

The plan also addresses research workforce shortages at regional SMEs. The share of recruitment slots allocated to companies outside the Greater Seoul area under the SME research personnel hiring support project will rise from 50 percent to 60 percent this year. Manufacturing AI SMEs will be eligible for support to hire up to two new research staff members.

To encourage young people to take jobs at regional SMEs and stay longer, the government plans to introduce a preferential track within the Youth Future Savings scheme for employees at regional SMEs starting next year. For the Youth Job Leap Incentive, the government is pursuing a significant increase in the grant for young people who take up positions at SMEs outside the Greater Seoul area — currently capped at 7.2 million won ($5,260) over two years.

Improvements to SME working conditions are also part of the plan. Financial support for preventing the three most common workplace accidents — falls, entrapment and collisions — at workplaces with fewer than 10 employees will be raised to cover up to 90 percent of costs. The government is also pursuing an expansion of the mandatory safety and health officer appointment requirement under the Occupational Safety and Health Act, which currently applies to workplaces with 50 or more employees.

The plan calls for greater use of middle-aged workers and foreign labor. The threshold for companies required to provide reemployment support services to workers approaching retirement will be lowered from the current 1,000 or more employees to 500 or more next year, and further to 300 or more in 2029. To help SMEs make use of foreign workers, the government plans to develop a comprehensive foreign workforce integration roadmap covering recruitment, residency support and settlement.

Infrastructure connecting SMEs with job seekers will also be strengthened. The ministry will expand its corporate workforce assistance centers from 17 locations last year to 34 this year and build cooperative networks with regional employment centers and universities.

The job-seeking allowance under the national employment support program, which helps youth and other job seekers enter the labor market, was raised from 500,000 won per month last year to 600,000 won this year, providing up to 3.6 million won over six months. The government also plans to establish a "Youth Playground" (tentative name) to introduce promising SMEs to young people seeking employment and connect aspiring entrepreneurs with mentoring opportunities from sunbae founders.

"I hope the fifth basic plan for SME workforce support becomes a turning point in creating companies where talent seeks to work and where talent can grow," said First Vice Minister of the Ministry of SMEs and Startups Noh Yong-seok. "We will spare no effort, working together with relevant ministries, to provide the support needed so that those working at SMEs can lead the future of an irreplaceable Korea."