S. Korea announces KRW 146.2bn smart manufacturing project.

Sejong, South Korea—According to a ministry statement, the Ministry of SMEs and Startups has unveiled a KRW 146.2 billion ($117.4 million) plan to support the development of smart manufacturing by 2023.

The initiative aims to establish 758 smart factories, including 200 basic-level, 558 advanced-level, and 330 "win-win" factories developed in collaboration with larger companies.

Smart factories, which use automation and data analytics to improve efficiency and productivity, have been a government priority since 2014. 

Preliminary figures suggest that around 30,000 smart factories will have been built by the end of 2022.

KOSTAT reports that smart factories have improved productivity (29.4%), quality (42.8%), and cost efficiency (15.9%). 

In addition, there has been an increase in sales (6.4%) and employment (1.5 people per factory), as well as a decrease in workplace accidents (4.9%).

For 2023, the government plans to shift its focus from numerical expansion to promoting the development of existing smart factories. 

The project application period has been extended to 45 days to give companies more planning time.

The government will fund advanced factories while encouraging private sector participation in developing primary and "win-win" factories. 

The Smart Manufacturing Innovation Promotion Team will replace the Smart Manufacturing Innovation Center and oversee the selection process for government-funded projects.

The initiative includes an investment-linked smart factory construction project based on inter-ministerial cooperation. 

Under this program, the private sector invests in vendors that develop smart factory solutions while the government supports their growth.