LH Announces '2021 Win-Win Smart Factory Construction Support Project' Competition

Support for Customized Smart Factory Construction to Improve Productivity of Partner SMEs
12 Target Companies Supported with a Total of 720 Million KRW Raised from LH Contributions and Government Support

LH 2020 Smart Factory Implementation Support Case

[Asia Economy Reporter Kangwook Cho] Korea Land and Housing Corporation (LH) announced on the 13th that it will hold a public contest for the ‘2021 LH Win-Win Smart Factory Construction Support Project’ as part of the government’s smart factory dissemination and expansion initiative.

A ‘smart factory’ is an advanced intelligent factory that integrates all production processes from product planning to sales using ICT (Information and Communication Technology) to produce customized products with minimal cost and time. It applies cutting-edge technologies such as IoT, 5G, and AI to factories, improving product design and production processes through production management systems (MES) that automate overall factory operations including process management, quality control, and equipment management, and enterprise resource planning systems (ERP) that automate resource management such as receiving, production, shipping, and inventory control.

LH started the ‘Win-Win Smart Factory Construction Support Project’ for the first time last year by matching government project funds with LH’s own contributions. It invested 740 million KRW in 13 manufacturing SMEs selected through the LH certified new technology contest to build smart factories with advanced technology, supporting the establishment of systems such as robotic stacking systems and automated material management and product shipping management systems.

Through this, supported companies have achieved simultaneous improvements in safety and productivity, including accident prevention, increased production volume, and reduced defect rates. For example, Deokin Metal, which manufactures architectural metal panels, introduced a laser cutting machine for steel plate cutting, replacing previous manual work with machinery. This not only prevented safety accidents and industrial injuries such as musculoskeletal disorders among workers but also increased production by more than 10% and reduced defect rates by over 70%, demonstrating significant results.

For this year’s second round of the smart factory construction support project, LH plans to invest a total of 720 million KRW, including 300 million KRW from its own funds, 240 million KRW in government support, and 180 million KRW in SME contributions, to support the construction of smart factories for 12 SMEs. LH will operate the project through a consortium with collaborative organizations such as the Korea Federation of SMEs and the Korea Productivity Center. LH will handle fund contributions and overall project management, the Korea Federation of SMEs will support promotion and discover best practices, and the Korea Productivity Center will provide consulting support and manage smart factory construction and performance.

LH will accept applications and documents until the 15th of this month, select support targets through evaluation, and plan to operate the project by signing agreements with collaborative organizations and contributing funds in August.

An LH official stated, "Through this project, we will move beyond one-time support to provide tailored support throughout the SME lifecycle, from market support through new technology contests to productivity improvement through smart factory construction, thereby strengthening LH’s win-win growth support system."

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