Gwangju Companies Lagging in Response to the 4th Industrial Revolution and Digital Transformation

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] Although companies in the Gwangju area showed a high level of awareness regarding the 4th Industrial Revolution and digital transformation, the response of the local industrial sector and the preparedness of individual companies were found to be low.

The Gwangju Chamber of Commerce and Industry announced the results of the "2022 Survey on the Introduction of New Technology Convergence and New Business in Gwangju Area Companies" (responses from 115 manufacturing company representatives and executives in the Gwangju area) conducted as part of the Gwangju Regional Innovation Project.

According to the analysis report, companies in the Gwangju area showed a relatively high level of awareness (76.5%) about the 4th Industrial Revolution and digital transformation, with the chemical products industry showing the highest awareness and the food industry the lowest.

Additionally, 82.3% of respondents believed that changes in the industrial paradigm, such as digital transformation, would influence their industry, and 88.5% believed it would impact business management, indicating that the majority of companies highly recognize the accelerating influence of digital transformation.

However, negative responses (83.5%) were high regarding the local industrial sector's level of response to new technology convergence and new business introduction, and the companies' response and preparedness level (32.5%) were also low.

Reasons cited for companies' inability to respond included lack of skilled personnel and talent (31.7%), lack of investment funds (23.1%), and lack of understanding of the 4th Industrial Revolution (19.2%).

To respond to the acceleration of the 4th Industrial Revolution and digital transformation in the future, urgent support policies that the government and local governments should promote include talent development, education and training provision (21.5%), tax benefits related to corporate investment (16.1%), promotion and support for the spread of smart factories (13.4%), creation of market conditions for new business model creation (12.1%), and support for activating collaboration between small and large enterprises (12.1%).

Meanwhile, 51.3% of respondent companies expressed an intention to enter new technology convergence and new business fields, with the chemical products industry (66.7%) and the electrical and electronics industry (53.8%) showing high intentions to enter.

Among companies that expressed an intention to enter new businesses, 91.9% indicated willingness to participate in government R&D support projects, and 86.9% expressed willingness to form business partnerships in production, technology, and sales with leading domestic and international companies.

Choi Jong-man, Executive Vice President of the Gwangju Chamber of Commerce and Industry, said, "Local companies recognize the importance of industrial paradigm changes such as digital transformation, but the response capability of the local industrial sector and companies is insufficient, and it is difficult for individual small and medium-sized enterprises to apply new technologies to their products, so regional-level countermeasures are necessary."

He added, "Since 2019, with the support of Gwangju Metropolitan City and the Gwangju Regional Employment and Labor Office, we have been promoting the 'Promising Companies Future Core Technology Convergence Support Project' as a customized package project for individual companies to provide a foundation for promising local companies to grow into leading companies."

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