MSIT-developed technology to link with SME ministry's smart factory program
North Jeolla, South Gyeongsang pilots to precede full logistics-production rollout in 2028
SME-focused TF to pursue joint R&D in defense, pharma-biotech and K-consumer goods
The government will combine the Ministry of Science and ICT's "AI Factory Manager for All" program with the Ministry of SMEs and Startups' smart factory support initiative to accelerate the adoption of physical AI in small and medium-sized manufacturers. Under the arrangement, the science ministry develops and validates physical AI technology while the SME ministry applies it directly to factory floors.
The two ministries visited KAIST's physical AI demonstration lab Monday and held a roundtable with technology suppliers and manufacturing companies to discuss ways to promote the physical AI transition across small and medium-sized manufacturing sites.
The core of the plan is to connect the two ministries' programs, which have until now operated separately — one focused on technology development, the other on factory-floor support. The science ministry will gradually expand access to physical AI full-stack solutions developed through ongoing regional pilots in North Jeolla and South Gyeongsang provinces, making them available to small and medium-sized enterprises. The SME ministry will link those technologies to its smart factory rollout program to support actual production-line deployment and validation.
The science ministry's "AI Factory Manager for All" will begin this year with consulting services for introducing autonomous mobile robots and automated guided vehicles on individual logistics segments, then broaden its scope over time. In 2027, the program will expand to cover consulting on mixed-equipment deployment across entire logistics operations and the provision of precision manufacturing data. From 2028, it plans to offer integrated operations management consulting and systems spanning the full logistics and production process.
The SME ministry will create a dedicated support program allowing small manufacturers to use the "AI Factory Manager for All" service and the smart factory construction program simultaneously. Standout results from the pilot process will be made available through the "Manufacturing AI 24" platform, which connects manufacturing data, solutions, technology suppliers and government support programs.
The collaboration also extends the SME ministry's existing smart manufacturing policy agenda. Following the "AI-Based Smart Manufacturing Innovation 3.0 Strategy" announced last year, the ministry this year drew up a strategic technology roadmap for smart manufacturing and selected seven strategic fields and 49 promising technology items centered on AI and digital twins. In July, it also introduced for the first time in South Korea a special industrial classification system for smart manufacturing technology companies, including those in manufacturing AI.
Beyond factory-floor application, the two ministries will pursue joint research and development in physical AI. The science ministry will lead development of core foundational technologies targeting areas including national security, pharmaceutical biotech, climate technology and K-consumer goods, while the SME ministry supports application and validation that reflects manufacturing demand and commercialization potential.
The Physical AI Alliance, whose second cohort launched in June, will also serve as a link for supporting small manufacturers. A dedicated TF for small and medium-sized manufacturers will be formed within the alliance — which brings together related ministries, research institutions, industry associations and companies — to identify on-site needs and connect technology suppliers with manufacturers seeking solutions.
Monday's roundtable was attended by technology suppliers including Rainbow Robotics, Persona AI, Pebblous and Impix, as well as manufacturers Baekje Food and New Hitech. Participants called for a sustained cooperation framework to connect supply and demand companies, better data utilization infrastructure, specialist workforce training and stronger coordination among government support programs.
Noh Yong-seok, first vice minister of SMEs and Startups, said building verified leading models that companies can benchmark is essential for small manufacturers to quickly adopt and use physical AI. "We will concentrate our policy resources on spreading the results of the mega-project led by physical AI to small and medium-sized manufacturing sites," he said.
Ryu Je-myeong, second vice minister of Science and ICT, said that for physical AI to deliver real results on the factory floor, it is important to build a system that connects with manufacturing demand and leads to validation and wider adoption.
hong@heraldcorp.com
