Fostering 25,000 Digital Manufacturing Innovation Companies by 2027

Ministry of SMEs and Startups Announces 'New Digital Manufacturing Innovation Promotion Strategy'

By 2027, 25,000 digital manufacturing innovation companies will be nurtured. The government plans to cultivate 5,000 advanced companies and induce digital transformation of 20,000 small and medium-sized manufacturing enterprises (SMEs) led by the private sector and local regions.

The Ministry of SMEs and Startups (Minister Lee Young) announced the "New Digital Manufacturing Innovation Promotion Strategy," which contains the government's direction and practical strategies for digital manufacturing innovation in SMEs, at the "Emergency Economic Ministers' Meeting and Export Investment Measures Meeting" chaired by the Deputy Prime Minister on the 18th. The key feature of this strategy is to break away from the uniform support method led by the government and provide customized support for digital manufacturing innovation from start to finish according to the capabilities of each company. When SMEs apply for manufacturing innovation projects, they will be divided into leading models, advanced, or basic intelligent factories based on evaluations by private experts and receive tailored support. Furthermore, after support, more thorough follow-up management will be conducted to strengthen the core competencies of companies.

Through this, the government will focus on nurturing leading models and advanced factories by supporting 5,000 companies by 2027, while basic-level factories will be supported independently by local governments or induced to build 20,000 factories using private policy finance. Thus, the government, regions, and private sector will jointly nurture 25,000 digital manufacturing innovation companies by 2027.

Specifically, companies with excellent capabilities will be nurtured as leading models such as autonomous factories applying artificial intelligence (AI) and digital twins that minimize worker intervention, or digital collaboration factories among companies within the value chain. Companies with average capabilities will be developed into advanced digital manufacturing factories that automatically control equipment and processes based on manufacturing data. For companies with somewhat insufficient capabilities, basic-level factories will be supported according to their circumstances, including robots and automation equipment that can improve production environments and alleviate labor shortages, and digitalization of production information.

A digital manufacturing innovation ecosystem based on internationally standardized manufacturing data will also be established. To this end, a Korean-style manufacturing data standard model compatible with data standards of manufacturing powerhouses such as the EU and the United States will be prepared. Based on standardized data, smooth data sharing between companies and processes, operation of an online manufacturing data marketplace where manufacturing data can be registered, searched, and purchased will be promoted to realize a data economy.

A sustainable cooperative network led by the private sector and regions will also be built. First, the environment will be strengthened so that small and medium manufacturing companies with digital manufacturing innovation demands can voluntarily collaborate with technology suppliers and large companies. A "Manufacturing Innovation Portal" will be created where demand companies can search for optimal collaboration company information considering region and technology field at any time and consult online, and the number of large companies participating in win-win factory construction with SMEs will be expanded. Technoparks (TPs) will be nurtured as hub institutions promoting digital transformation of regional SMEs, and local governments will be granted the right to recommend companies participating in the government's intelligent factory projects.

To strengthen the capabilities of technology supplier companies, another pillar of digital manufacturing innovation, private experts will provide consulting. To promote market participation of excellent supplier companies, achievements in intelligent factory construction will be disclosed, and opportunities to participate in government projects will be expanded for advanced technology suppliers.

Minister Lee Young said, "We have prepared this strategy by pooling the capabilities of related ministries to strongly promote the digital manufacturing innovation of SMEs, a national agenda, and create a golden age of manufacturing." He added, "The government, private sector, and regions will become one team to nurture 25,000 digital manufacturing innovation companies by 2027, achieving qualitative advancement and quantitative improvement of intelligent factories."

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