Public-Private Joint Project to Build 5,600 Smart Factories by the End of the Year
Build a manufacturing data center and platform by the end of the year
Support for development of core technologies such as CPS and smart sensors


A total of 492.5 billion won will be invested in the smart manufacturing innovation support project this year.

The Ministry of SMEs and Startups announced this on the 31st while announcing the integrated '2020 Smart Manufacturing Innovation Support Project Support Plan'.

The main projects of this integrated announcement consist of 11 projects including ▲smart factory construction and advancement ▲manufacturing data infrastructure construction ▲support for manufacturing innovation using robots ▲consulting such as smart masters ▲process and quality technology development ▲development of smart factory technology based on on-site demand ▲development of smart sensor leading project technology.

As of the end of last year, the Ministry of SMEs and Startups had distributed a total of 12,660 smart factories. On average, adopting companies saw a 30% increase in productivity, a 43.5% improvement in quality, a 15.9% decrease in costs, a 15.5% increase in on-time delivery, an increase of 3 people per company, and a 17.9% decrease in industrial accidents.

This year, the budget has been increased by 1.4 times compared to last year's 342.8 billion won, and the direction of support has also shifted from expanding the existing smart factory base to enhancing it.


Support for building and improving smart factories
The Ministry of SMEs and Startups plans to invest 415 billion won this year to expand 5,600 smart factories (3,800 government and 1,800 private).

In particular, starting this year, small and medium-sized enterprises that build or advance smart factories with their own technical personnel will also be eligible for support. This is an improvement on the previous system where support was only provided when smart factory demand and supply companies applied for business in the form of a consortium.

In addition, an advanced support track will be added to the 'mutually beneficial smart factory project' in which large corporations support small and medium-sized enterprises to build smart factories.

If small and medium-sized enterprises utilize a win-win business to advance their smart factories, they can receive support of up to 180 million won (90 million won from the government, 90 million won from large corporations, etc.).

The Ministry of SMEs and Startups plans to establish a plan for collecting, analyzing, and utilizing manufacturing data, and link manufacturing data generated in smart factories with manufacturing data centers and platforms.


Building a manufacturing data center and platform
Starting at the end of this year, small and medium-sized enterprises will be able to utilize advanced smart factory services, such as preemptively diagnosing manufacturing process failures through data accumulation and analysis, just like large companies.

By the end of this year, one manufacturing data platform and two data centers (selected through a public offering, costing 1.5 billion won per center) will be built.

The data center supports the collection and utilization of manufacturing data produced in smart factories, and the data platform provides advanced data analysis and utilization services in conjunction with regional data centers.


Support for smart factory level verification
The full cost of verifying the level of smart factories (KRW 800,000, 1,190 companies) will be supported for companies that have built their own smart factories without participating in the smart factory distribution and expansion project since 2014, or companies that have advanced their smart factories without government support among the participating companies.
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Applicant companies can receive smart factory advancement guidelines along with confirmation of smart factory level. In addition, small and medium-sized enterprises (level-confirmed companies) that have introduced smart factories can receive preferential treatment when supplying to public institutions or applying for policy funds, etc.


Securing manufacturing competitiveness through robot introduction
Small and medium-sized companies that want to improve their processes by utilizing robots can apply for the 'Robot Utilization Manufacturing Innovation Support' project. The Ministry of SMEs and Startups will provide a total of 8.5 billion won to about 30 companies this year.

The support conditions are within 300 million won per company (within 50% of the total project cost), and companies wishing to introduce the robot can apply by forming a consortium with a robot supplier.


Support for acquiring know-how on making manufacturing processes smarter
Smart Masters will be supported (400 people selected, 800 companies supported, total of KRW 7 billion) to help resolve on-site difficulties faced by small and medium-sized enterprises related to the introduction and operation of smart factories.

A Smart Master is a smart factory field expert who has worked at a large company's manufacturing site or has equivalent experience, degree, or qualifications.

Selected companies will be able to receive Smart Meisters for approximately three months to immediately resolve issues related to smart factories in the field and acquire manufacturing know-how at the level of large corporations.

In addition, a budget of 3 billion won was allocated to the 'Smart Capacity Enhancement' project so that small and medium-sized enterprises can receive professional consulting related to smart factories. Companies selected for the project can receive advice and consultation from professional consulting firms on establishing and operating smart factory construction strategies.

This year, depending on corporate needs, we will provide support divided into basic consulting (5 days), in-depth consulting (10 days), and one-point mentoring.


Support for development of smart factory technology based on on-site demand
Development of cloud-based data platform technology / We support the development of 'cloud-based data platform technology' that remotely collects and analyzes manufacturing data and controls production facilities via the cloud to improve the technological level of domestic smart factory suppliers.

This year, we will build a pilot smart factory based on Cyber-Physical Systems (CPS). The selected companies will implement CPS technology, which comprehensively verifies processes and facilities, in domestic fields and create an environment similar to an actual factory in a virtual space with government support.

K-Appsyst Technology Development / We also support the development of solutions that digitize data from production sites and support the development of products and services linked to smart factories.

The selected companies will digitalize manufacturing know-how related to equipment maintenance, failure response, and optimization of simple repetitive tasks, and develop solutions that enable workers and machines to collaborate to improve productivity.


Support for technology development of smart sensor leading project
Starting this year, we will provide new support for the development of smart sensor technology, one of the key components for advancing smart factories.

The selected companies will develop components that enable smart sensors to operate in high-temperature and high-power environments, or develop intelligent technologies that support real-time decision-making using manufacturing data collected from sensors.


Support for process and quality technology development
We support process and quality technology development for companies that want to innovate processes or improve product productivity through collaboration with industry, academia, and research expert organizations.

The process and quality technology development project consists of innovation-type R&D and field-type R&D. Any small and medium-sized enterprise wishing to improve the productivity of its products can apply for on-site R&D, but innovation R&D is limited to companies that have introduced smart factories and wish to advance their smart factories.

The Ministry of SMEs and Startups plans to announce detailed information on support targets, support contents, and support conditions through future public notices for each detailed project.

Information on the integrated announcement and follow-up detailed project announcement, etc. can be found on the website of the Ministry of SMEs and Startups , the Smart Factory Project Management System , the 1357 Integrated Call Center for SMEs , and the Technology Development Project Comprehensive Management System .

If you have any business-related inquiries, you can contact the business-specific dedicated organization and regional manufacturing innovation center (techno park). For inquiries about the 'Robot-Used Manufacturing Innovation Support' project, please contact the Korea Robot Industry Advancement Institute.