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South Korea's MIDAS 2027: A Shift in Manufacturing Strategy

Photo by Possessed Photography / Unsplash

Sejong, South Korea  - The Ministry of SMEs and Startups (MSS) unveiled its "Manufacturing Innovation and DX Acceleration Strategy (MIDAS 2027)" at an emergency economic meeting.

The strategy emphasizes the digital development of small- and medium-sized manufacturing industries.

The Key Points

  • Strategy Focus: MSS will move away from a generic support approach. Support decisions will be based on business capabilities assessed by independent experts.
  • Factory Evolution Goals: The plan is to help 5,000 companies develop 20,000 factories by 2027, intending to create 25,000 digital manufacturing companies through collaborative efforts.
  • Data Standardization: An initiative to create a South Korea-specific standard model for production data in line with international standards from the EU and the US is underway to standardize data usage.
  • Collaboration push: The government is pushing larger companies to collaborate with SMEs. A proposed manufacturing innovation portal aims to streamline these partnerships.
  • Accountability measures: A reporting center will be established to monitor compliance. Violators could face stiff penalties.

The Big Picture

The South Korean government, which has supported smart factories since 2014, recognizes the need to adjust its support strategies. MIDAS 2027 is the result of this recognition.

The strategy introduces specialized support for digital manufacturing that differs from previous government methods.

Companies can secure support to develop new models, improve existing ones, or initiate smart factories depending on their needs.

Another important aspect is the emphasis on data standardization to optimize collaboration and data application.

SMEs will be encouraged to partner with technology providers to strengthen cross-industry collaboration.

At the same time, larger enterprises will be encouraged to partner with SMEs.

Minister LEE Young's remarks on MIDAS 2027 emphasized a coordinated approach involving government, private and regional entities.

The ultimate goal is to create 25,000 digital manufacturing companies by 2027, signaling a strategic shift in South Korea's approach to manufacturing.