Only 4.97 billion won spent of 98 billion won budget for small manufacturers' smart production support
AI assistant for small businesses at 14.7%; smart manufacturing workforce training at 27.8%
Kwon Hyang-yeop: 'We're in Q4 and rates are still low — AI infrastructure rollout must accelerate'
Several projects run by the Ministry of SMEs and Startups to help small and medium-sized enterprises and small business owners adopt artificial intelligence have spending rates below 30% even as the fourth quarter begins. The worst performer — a smart manufacturing support program for small manufacturers with a budget of 98 billion won ($72.1 million) — has spent just 5.1% of its allocation.
According to data submitted to Democratic Party of Korea lawmaker Kwon Hyang-yeop of the National Assembly's Industry, Trade, Resources, SMEs and Startups Committee, three of the ministry's 19 AI-transition projects for 2026 had actual spending rates below 30% as of September.
The lowest was the small manufacturers' smart production support program, at 5.1%. Of the 98 billion won budgeted for this year, only 4.97 billion won has been spent.
The program was designed to introduce automated equipment into the largely manual production processes of small manufacturers and to spread smart technologies such as AI and the Internet of Things. The ministry said delays stemmed in part from the Ministry of Planning and Budget's review of projects suspected of irregularities.
The AI assistant program for small business owners also lagged, with a spending rate of 14.7%. Of its total budget of 5 billion won, only 730 million won has been disbursed.
That program trains an AI system on information and data related to small-business support, then provides individual business owners with tailored consultations and policy guidance.
The smart manufacturing innovation workforce training program spent 1.67 billion won of its 6 billion won budget, for a rate of 27.8%. It provides job seekers hoping to enter smart manufacturing companies with hands-on technical training and stipends, and offers intern allowances to small and medium-sized manufacturers and AI solution providers that take on interns.
Other programs fared better: the Year Dream School initiative for training AI talent at startups recorded a spending rate of 68.5%, the smart technology dissemination program for small businesses reached 71.9%, and the online sales channel support program for small businesses stood at 73.4%.
"A significant number of the ministry's core AI transformation projects are showing poor spending rates even as we enter the fourth quarter," Kwon said. "We need to improve effectiveness so that AI infrastructure reaches small and medium-sized enterprises and small business owners quickly."
hong@heraldcorp.com
