Korea Federation of SMEs and POSCO to Support Smart Factory Development for SMEs

Recruitment of Companies for the "2026 Win-Win Smart Factory Project"

The Korea Federation of SMEs and POSCO announced on May 20 that they are recruiting companies to participate in the "2026 Win-Win Smart Factory Development Project (POSCO Type)" led by the Ministry of SMEs and Startups.

Since 2019, the Korea Federation of SMEs and POSCO have supported the establishment of smart factories for over 480 small and medium-sized enterprises (SMEs), with a total investment of approximately 20.5 billion won, contributing to the enhancement of manufacturing competitiveness among SMEs. This year, in response to increasing demand for artificial intelligence (AI) technology adoption in SME manufacturing sites, a new "AI Track" has been introduced. The AI Track, designed to build advanced intelligent factories, will provide up to 640 million won per company (covering 80% of the total project cost), with the goal of creating leading AI transformation (AX) models among SMEs.

Additionally, to broaden the foundation of smart manufacturing, support for "basic" level smart factories will be resumed, fully reflecting on-site needs of SMEs. An additional benefit has been introduced to give preference to member companies of SME cooperatives. This aims not only to foster manufacturing innovation at the individual company level, but also to achieve industry-specific innovation centered on cooperatives and to maximize network synergy among SMEs. Furthermore, companies based in Pohang, Gwangyang, Gyeongju, Suncheon, and Yeosu will receive preferential consideration.

Companies selected for support will receive in-depth mentoring from "POSCO Mutual Growth Support Group," POSCO's highly skilled expert team. Through various mutual growth programs such as facility optimization, energy savings, and safety/environmental improvement, operated by the support group, participants will receive a "total solution" that goes beyond simply building smart factories.

Yang Chanhoe, Executive Director of the Korea Federation of SMEs, stated, "With the introduction of the AI Track and the resumption of support for the basic stage this year, the intelligent and autonomous manufacturing innovation at SME production sites through smart factories will accelerate. By strengthening support for cooperative members, root industries, and ESG-related companies, we will ensure that this project becomes a key driver for the recovery of the real economy on manufacturing sites and for AI transformation."

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