Assemblyman Gu Jagun: AI Transition Is a Matter of Survival for SMEs

Amendment to the SME Promotion Act Proposed
Legal Basis Established for Setting Up and Operating AI Transition Support Centers

On April 17, Assemblyman Gu Jagun (People Power Party, Gumi City A) proposed an amendment to the Small and Medium Enterprise Promotion Act, which establishes the legal basis for setting up and operating an "Artificial Intelligence Transition Support Center" to assist SMEs in adopting AI technologies.

Under the current law, the Korea SMEs and Startups Agency is authorized to support the automation and digitalization of small and medium-sized enterprises by establishing and operating Automation Support Centers and Digitalization Support Centers. However, according to data submitted to Assemblyman Gu Jagun by the Korea SMEs and Startups Agency, there are currently no such support centers in actual operation.

Recently, the use of artificial intelligence technology has been rapidly spreading across the manufacturing and service industries. Nevertheless, SMEs are struggling to transition to AI due to a lack of specialized personnel and insufficient data utilization capabilities.

According to the "Survey on SMEs' Intentions to Utilize Artificial Intelligence" conducted by the Korea Federation of SMEs in 2024, only 5.3% of SMEs are currently applying AI, and just 16.3% of companies expressed a desire to adopt it. This indicates that the foundation for AI utilization among SMEs remains weak and that the technological gap with large corporations is widening.

Given this situation, there is a lack of dedicated support systems to help SMEs transition to AI, and there have been ongoing calls for the government to respond proactively to the industry-wide shift toward artificial intelligence, beyond just automation and digitalization.

The amendment proposed by Assemblyman Gu Jagun establishes the legal grounds for the Korea SMEs and Startups Agency to set up and operate Artificial Intelligence Transition Support Centers. It also enables the agency to systematically support AI adoption by SMEs through initiatives such as: identifying and assessing demand for AI transition among SMEs; training specialized personnel; providing support for data collection, processing, and utilization; offering education and consulting; and assisting with proof-of-concept and pilot projects.

Through this amendment, it is expected that the barriers to AI adoption by SMEs will be lowered, and the digital competitiveness of the industry as a whole will be further strengthened. Furthermore, as a dedicated support system centered around the Korea SMEs and Startups Agency is established, tangible support effects are anticipated to reach even regional SMEs.

Assemblyman Gu Jagun stated, "AI transition is no longer a choice but a matter of survival. Yet, SMEs still face challenges in terms of workforce, data, and technology. A systematic, nationwide support structure must be established to ensure SMEs can utilize AI to improve productivity and competitiveness."

Gu Jagun, Member of the National Assembly (People Power Party, Gumi City A)
Photo by Lee Jihwan

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