Legislation to Maximize Industrial Data Utilization... Follow-up Measures for the Korean New Deal

"Industrial Digital Innovation... Leap to a Top 4 Global Industrial Power"
Advancing the Industrial Value Chain Using Data and Artificial Intelligence
Establishing 30 Data Platforms for 10 Key Industries Including Electric Vehicles and Materials
Creating New Manufacturing-Based Services Such as Autonomous Driving Service Demonstrations
Raising a 400 Billion KRW Fund by 2024, Investing 60% in Commercializing Promising Companies
Reviewing Legislation for Industrial Data Standardization and Trading Guidelines
Training 16,000 Industrial Data and AI Specialists

[Asia Economy Reporter Moon Chaeseok] The government announced its plan to increase the utilization of industrial data and accelerate the digital transformation across industries. As a follow-up measure to the 'Korean New Deal,' it will build a 'Data Dam' applying D.N.A (Data·Network·AI) throughout the industry to innovate the value chain and create new products and services. To this end, it will establish and expand industrial data platforms for 10 key industries such as electric vehicles and materials, and establish a legal foundation concerning the principles of industrial data utilization and protection.

The Ministry of Trade, Industry and Energy announced the 'Digital-Based Industrial Innovation Growth Strategy' at the 2nd Korean New Deal Ministers' Meeting and the 14th Central Disaster and Safety Countermeasures Headquarters (Economic Central Disaster Headquarters) meeting held on the 20th.

Source: Ministry of Trade, Industry and Energy

The Ministry proposed three major tasks to innovate the industrial value chain and increase added value based on collaboration among large, medium, and small enterprises. Unlike personal data and public data, industrial data involves concerns such as leakage of corporate trade secrets and security issues, but the government explained that it judged that industrial data utilization must be increased before it is too late to catch up with global manufacturing powerhouses.

The tasks are ▲timely and appropriate support for industrial data utilization based on industry demand ▲advancement of the industrial value chain using data and artificial intelligence (AI) ▲establishment of industrial digital innovation infrastructure.

Source: Ministry of Trade, Industry and Energy

First, 30 problem-solving industrial data platforms will be built in 10 key industries such as electric vehicles and materials. The strategy is to create early success cases centered on strategic sectors like electric vehicles and materials and spread them to other industries.

For example, a vertical collaboration system will be established among electric vehicle parts manufacturers. By combining and analyzing data on parts, operation, and environment, efforts will be made to improve parts performance and provide consumable lifespan prediction services.

In this process, the utilization of platforms combining vehicle operation data (personal), parts failure and inspection data (industrial), and environmental data (public) will be increased. Through this, various innovative success cases will be derived, such as services that prevent electric vehicle parts failures in advance, unmanned management and car-sharing services, and development of automobile insurance and financial products.

Source: Ministry of Trade, Industry and Energy

Public data such as standards and patents will be utilized to provide AI-based intelligent services. Support will be given for companies’ new product and service testing, certification, and intellectual property acquisition.

Using AI and industrial data, the value chain of all industries will be advanced. To this end, an 'intelligent methodology' will be applied at all stages of industrial research and development (R&D). Problems will be defined and planned based on data and AI, then data will be accumulated during execution and result data extracted.

Promising strategic fields that can create new services based on manufacturing, such as autonomous driving service demonstrations, robot delivery services, smart homes, autonomous ships, and remote energy demand management, will be discovered and supported. Additionally, more than 20% of new projects will be promoted as large-scale integrated R&D.

By 2024, a 400 billion KRW 'Industrial Intelligence Fund' will be established to support technology commercialization of promising innovative companies. More than 60% of the investment will be concentrated on leading companies that have excellent technology but face difficulties in funding and credit enhancement until commercialization.

Source: Ministry of Trade, Industry and Energy

Data standardization, data transaction guidelines, and other measures will be supported by laws and systems. The enactment of the 'Digital-Based Industrial Innovation Growth Promotion Act' or revision of the 'Industrial Convergence Promotion Act' will be considered.

Cases such as Japan, which provides public data and tax support when utilizing industrial data through the 'Special Act on Productivity Improvement,' will be referenced. Through such support, principles for industrial data utilization and protection will be guaranteed by law.

An official from the Ministry of Trade, Industry and Energy explained, "Rather than increasing the risk of exposing corporate trade secrets by sharing all processes, we will gradually expand industrial data sharing between companies starting from specific sectors," adding, "Servers will be operated in a way that companies autonomously manage them."

He said, "This government strategy emphasizes the importance of alliances (collaborations) between companies," and added, "Since countries strong in manufacturing like Germany and Japan are clearly using strategies to strengthen manufacturing by utilizing industrial data, we judged that it is not too late to start (digital transformation) now."

16,000 specialized personnel in industrial data and AI will be trained. The Ministry of Economy and Finance will announce the specific timeline for achieving these goals once the related budget is allocated.

From this year, AI-convergent industrial field technicians will be trained, and talents to promote digital transformation will be nurtured. Next year, a big data specialist training program will be newly established.

Source: Ministry of Trade, Industry and Energy

In addition, ▲10 digital management success models will be disseminated, and 10 convergence alliances operated ▲Focused development of four core components and equipment for digital transformation such as intelligent semiconductors, smart sensors, embedded AI, and AI-convergent robots ▲Full-scale implementation of the Digital Trade Agreement (DPA) and expansion of global cooperation projects will be carried out.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, emphasized in his opening remarks at the meeting, "Globally, the transition to a digital economy and the trend of industrial digitalization are accelerating," and added, "To enhance the global competitiveness of key industries that are the backbone of our economy, it is necessary to speedily promote industrial digital transformation utilizing our excellent manufacturing base and information and communication technology (ICT) infrastructure."

This content was produced with the assistance of AI translation services.