"Supporting K-Food SME Innovation"...Korea Federation of Small and Medium Business Recruits Food Manufacturing Companies for Smart Factory Project

Support for Establishing Smart Factories at 30 Food Manufacturing Companies

The Korea Federation of Small and Medium Business and Samsung Electronics announced on May 10 that, together with the Ministry of SMEs and Startups and the Ministry of Agriculture, Food and Rural Affairs, they are recruiting companies to participate in the "2026 Smart Factory Support Project for Food Manufacturing Industry."

Exterior view of the Korea Federation of SMEs. Korea Federation of SMEs

The Korea Federation of Small and Medium Business, in partnership with Samsung Electronics, has been supporting manufacturing innovation for small and medium-sized enterprises through the smart factory support project, which is regarded as a leading model of mutual growth.

This project was designed to strengthen the competitiveness of small and medium-sized, as well as mid-sized, enterprises operating in the K-Food food manufacturing industry, which is leading the global market.

This year, with a total budget of 3.9 billion won, the project will support the establishment of smart factories at 30 food manufacturing companies. Depending on the level of smart factory implementation, 15 companies each will be supported under the "Basic" and "Advanced" stages.

For the "Advanced" stage, up to 200 million won per company (not exceeding 50% of the total project cost) will be provided, while for the "Basic" stage, up to 60 million won per company (not exceeding 60% of the total project cost) will be supported.

The areas of support include not only the implementation of operational systems and automation such as Manufacturing Execution Systems (MES) and Enterprise Resource Planning (ERP) systems (linked with ICT), but also a variety of innovative initiatives tailored to food manufacturing sites, such as ultra-precision molds and process simulation.

Applications will be accepted from May 18 to June 12. The final beneficiaries will be selected through on-site inspections and a selection evaluation committee. Details on how to apply can be found on the Korea Federation of Small and Medium Business website, and inquiries should be directed to the Smart Industry Division of the Korea Federation of Small and Medium Business.

To enhance understanding of this project announcement and encourage participation from small and mid-sized food manufacturing and processing companies, the Korea Federation of Small and Medium Business will hold a project briefing session on May 11 at 2:00 p.m.

The session, under the theme "Finding Answers in AI-Powered K-Food Smart Factories," will provide detailed explanations about the announcement and guidance on preparing business plans.

Professor Lee Giwon, Head of the Department of Food Technology at Seoul National University, will give a special lecture on "K-Food Smart Manufacturing Innovation through AI." The event will also share real-life best practices from Hanul Agricultural Corporation, a sweet potato stick manufacturer, and Haedamsol, a specialized laver (seaweed) manufacturer, as outstanding examples of smart factories in the food manufacturing sector. Additionally, guidance on calculating project costs, including software development expenses, will be provided.

One-on-one customized consultations will be offered to pre-registered companies. Financial and business consulting from IBK Industrial Bank of Korea, as well as technical consultations on implementing smart factory solutions such as MES and ERP, will also be available.

Yang Chanhoe, Executive Director of the Korea Federation of Small and Medium Business, stated, "In the food industry, where stricter quality control and production efficiency are required than in any other sector, smart factories are an essential condition for securing global competitiveness. We hope that through this project, more small food manufacturing companies can establish themselves as key players in K-Food exports."

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