Support for Collaboration such as Network Connection between Smart Factories, Joint Production, and Marketing

Ministry of SMEs and Startups Supports Leading Digital Cluster Project... Up to 6.4 Billion KRW per Consortium over 3 Years

[Asia Economy Reporter Kim Jong-hwa] The government will support the creation and expansion of various collaborative business models by connecting data and networks between smart factories, ranging from joint material management to order receipt, production, distribution, and marketing.

The Ministry of SMEs and Startups announced the 'Leading Digital Cluster' support project centered on this content and stated that from the 23rd until February 1st of next year, it will accept applications from leading companies and collaborative companies closely related to the upstream and downstream value chains.

The Ministry of SMEs and Startups is promoting the distribution of 30,000 smart factories by 2022 as a key national task for manufacturing innovation in small and medium enterprises. About 20,000 have been distributed so far this year, contributing to the expansion of smart manufacturing among SMEs, and companies that have introduced them have shown tangible results such as a 30% increase in productivity and a 15% reduction in costs.

The digital cluster goes beyond the previous support focused on individual factories' smartification and is based on mutual connection through data and network between smart factories.

Through this, a batch order system for joint and shared production is established by jointly receiving orders for high-function parts in modular form with value chain companies, and manufacturing, delivery, and inventory information among collaborative companies can be shared and integrated to build an organic production response system to market demand. In addition, distribution and marketing companies can jointly utilize secured sales channels to promote collaborative projects such as new market development and production expansion for manufacturing companies.

To participate in the project, a consortium must be formed by more than 15 manufacturing companies, including innovative leading companies and collaborative small and medium-sized enterprises and mid-sized companies, along with a planning organization that supports systematic strategy establishment. The consortium can include not only manufacturing companies centered on processes but also related companies across manufacturing such as design, sales, and after-sales service to form a flexible and optimized collaboration centered on the upstream and downstream value chains.

The Ministry of SMEs and Startups plans to select a total of three consortia based on industrial and economic ripple effects, win-win cooperation, and innovation, and invest up to 6.4 billion KRW each over three years to support the commercialization of collaborative business models (BM).

In the first year, support will be provided for establishing a systematic Information Strategy Plan (ISP), and in the second and third years, comprehensive support reflecting the consortium's characteristics will be provided, including online-based ▲integrated management solutions ▲platforms ▲smart devices and networks that can be linked and utilized between companies.

Additionally, individual cluster participating companies can receive additional smart factory construction subsidies of ▲70 million KRW, ▲200 million KRW, and ▲400 million KRW according to the smartification target level for data-based process innovation.

Kim Il-ho, head of the Smart Manufacturing Innovation Planning Group at the Ministry of SMEs and Startups, said, "To enhance global competitiveness, it is important to strengthen connectivity between companies and create manufacturing synergy based on win-win cooperation," adding, "This project will expand digital manufacturing innovation from an individual factory focus to an ecosystem perspective, further spreading the qualitative advancement of smart factory distribution."

Detailed information about the support project can be found on the Ministry of SMEs and Startups website or through the project announcement on the Smart Factory Project Management System of the Small and Medium Business Technology Information Promotion Agency, the dedicated project agency, and applications can be submitted via the Smart Factory Project Management System.

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