"Supporting Smart Factory Construction Together with Large Corporations and Public Institutions"

Recruitment of Companies for Public-Small-Medium Win-Win Smart Factory Support Project Introduction

[Asia Economy Reporter Kim Cheol-hyun] The Ministry of SMEs and Startups (Minister Kwon Chil-seung, hereinafter referred to as the Ministry) announced on the 11th that it is recruiting companies to introduce the 'Large-Small Win-Win Smart Factory Support Project.'

Large corporations and public institutions, which are the main organizations supporting the establishment of smart factories, have confirmed participation from Samsung, LG Electronics, Korea Hydro & Nuclear Power, KEPCO KDN, KEPCO KPS, and Busan Port Authority in the first phase. Recruitment of introducing companies will be conducted separately according to the plans of each main organization, with Samsung and LG Electronics starting recruitment from today, followed sequentially by Korea Hydro & Nuclear Power, KEPCO KDN, KEPCO KPS, Busan Port Authority, and others.

The support method for this project is largely divided into 'Type 1' and 'Type 2,' which is exclusively for small enterprises, according to the support ratio of the government and the main organizations. Type 1 has a government support rate of up to 30% and a minimum private burden rate of 70%. The private burden is shared with the main organizations such as large corporations bearing at least 30%, and the introducing companies bearing up to 40%, allowing smart factories to be established with relatively low burden. Type 2, a small-scale support project at the basic stage targeting small enterprises, has the government and main organizations each bearing 50%, up to 10 million KRW, enabling introducing companies to establish simplified smart factories without separate construction costs.

Last year, nine large corporations including Samsung, Hyundai Motor Group, LS Electric, and POSCO, along with 23 public institutions such as Korea Hydro & Nuclear Power, Korea Electric Power Corporation, and Korea Western Power, participated, supporting the establishment of smart factories for about 1,000 companies with a total contribution of 27 billion KRW. Through this, productivity and quality in manufacturing sites improved, while costs were reduced, enhancing the manufacturing competitiveness of small and medium enterprises. There were also achievements such as increased employment and sales, and reduced industrial accidents.

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