'Accelerating Industrial Digital Transformation'... 100 Tasks Identified Over 3 Years in 6 Key Industries Including Future Cars

Minister of Industry: "We Will Create a 'Korean Sputnik Moment'"

Sung Yun-mo, Minister of Trade, Industry and Energy./Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Moon Chaeseok]

"Just as Russia won the space race against the United States in 1957 by launching the first artificial satellite, we will create the 'Republic of Korea's Sputnik Moment' in the global industrial digital transformation competition."

Seong Yun-mo, Minister of Trade, Industry and Energy, stated this on the 28th at the launch ceremony of the 'Industrial Digital Transformation Alliance' held at Dragon City Hotel in Yongsan-gu, Seoul. Sputnik was the name of the artificial satellite launched by the former Soviet Union in 1957, the world's first.

This is a follow-up measure to the 'Digital-Based Industrial Innovation Growth Strategy' announced by the government on August 20 as part of the 'Korean New Deal.'

Discovering 100 Digital Transformation Tasks Over 3 Years

President Moon Jae-in visited the future car industry exhibition hall after the National Vision for the Future Car Industry proclamation ceremony held at Hyundai Motor Company's Namyang Research Center in Hwaseong, Gyeonggi Province, on the afternoon of October 15 last year. He boarded the electric vehicle 'Twizy' and asked questions. (Photo by Yonhap News)

About 150 companies and institutions in six sectors?future vehicles, home appliances and electronics, healthcare, shipbuilding, distribution, and materials and components?have formed around 17 teams to participate in this alliance.

Over the next three years, alliances will be formed in 10 sectors, and 100 digital transformation tasks will be identified.

This year, considering the likelihood of digital transformation success and systematic composition of the industrial ecosystem, alliances will be formed in six sectors and 20 tasks will be pursued.

Comprehensive Support for Funding, R&D, and Regulatory Improvement of Discovered Tasks

[Image source=Yonhap News]

The innovation, success potential, and ripple effects of the discovered tasks will be enhanced. To this end, comprehensive support including funding, R&D, and regulatory improvements will be provided.

By 2024, an Industrial Intelligence Fund of 400 billion KRW will be established and supported. Financial support agreements (MOUs) have been signed to assist digital transformation investments of medium-sized and small enterprises, including 1.5 trillion KRW in guarantee support through the Korea Credit Guarantee Fund and an additional 520 billion KRW in credit loans from Shinhan Bank.

Industrial R&D will be transformed into data- and artificial intelligence (AI)-based approaches. Next year, 520 billion KRW in R&D funds will be allocated to the digital transformation sector.

If regulatory improvements are necessary for new product launches or new service provisions through digital transformation, rapid processing under the 'Regulatory Sandbox' system will be supported to remove obstacles.

Additionally, proactive discovery of business restructuring demands and batch approvals will be pursued for business groups entering the digital transformation sector. Support will be strengthened throughout the entire cycle of 'planning-establishment, implementation inspection, and issue resolution.'

Prompt Preparation of the 'Industrial Digital Transformation Act' in Consultation with the National Assembly

Democratic Party lawmaker Go Min-jung demonstrating autonomous driving technology during the National Assembly inspection of the Ministry of Trade, Industry and Energy at the Industry, Trade, Resources, Small and Medium Enterprises Committee meeting held at the National Assembly on the 7th. Photo by Yoon Dong-joo doso7@

The Ministry of Trade, Industry and Energy announced that it plans to promptly prepare the 'Act on Promotion of Industrial Digital Transformation and Intelligence,' proposed by Go Min-jeong of the Democratic Party on the 19th to the National Assembly's Industry, Trade, Small and Medium Enterprises Committee, in consultation with the National Assembly.

With the enactment of the law, the ministry aims to rapidly create successful cases of industrial digital transformation and expand them throughout the industry by establishing a private-sector-led 'Industrial Digital Transformation System.'

An official from the ministry explained, "We will create a virtuous cycle structure that proceeds from 'discovering digital transformation tasks → task advancement → selection of leading tasks → diffusion.'"

A collaboration support center will be operated to develop and provide common infrastructure technologies such as platform architecture and standard artificial intelligence (AI), as well as data standardization guidelines, helping the private sector voluntarily build an 'industrial data platform.'

Digital management success models (DX reference models) will be disseminated for private companies to benchmark. Efforts will also be made to cultivate 'change talents' by providing CEO awareness transformation and consulting services.

Minister Seong said, "Industrial digital transformation is expected to provide a stepping stone to raise the added value of our manufacturing-centered industry and transform it into a leading economy in the digital economy era represented by the Fourth Industrial Revolution."

He emphasized, "Above all, industrial digital transformation must be promoted centered on the private sector by utilizing the vast data and innovative capabilities possessed by the private sector."

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