Ministry of SMEs and Startups announces leading digital cluster support project
Participation of 15 or more small and medium-sized manufacturing companies centered on institutions
Applications are accepted by consortium unit... General type is also planned


The Ministry of SMEs and Startups announced on the 22nd that it is announcing a support project for the 'Leading Digital Cluster' based on smart factories, and that it will accept applications from 'leading companies' and 'collaborating companies' with close forward and backward value chains from December 23, 2020 to February 1, 2021.

The expansion of smart factories is a key national task for innovation in small and medium-sized manufacturing companies. The plan is to distribute 30,000 units by 2022, and about 20,000 units have been distributed as of this year. On average, the adopting companies achieved results such as increased product productivity (+30%) and quality (+43.5%) and reduced production costs (-15%).

This digital cluster was created to support the creation and expansion of diverse global-level collaborative business models (BMs), from joint material management to order receipt, production, distribution, and marketing, through data and network-based interconnection between smart factories, beyond the smart support centered on individual factories so far.

To participate in the business, a consortium must be formed with 15 or more small and medium-sized manufacturing companies and a planning agency to support strategy development. Not only manufacturing companies but also related companies in all areas of manufacturing, such as design, sales, and after-sales service, can participate in the consortium.

The Ministry of SMEs and Startups will select three consortia with a focus on industrial and economic ripple effects, win-win cooperation, and innovation, and support collaborative BM commercialization by investing up to KRW 6.4 billion each over three years.

The first year will support the establishment of a systematic information strategy plan (ISP), and the second and third years will provide comprehensive support that reflects the characteristics of the consortium, such as ▲integrated management solution based on online ▲platform ▲smart devices and networks that can be used in conjunction between companies.

Individual cluster participating companies can also receive additional support for building smart factories of △70 million won, △200 million won, and △400 million won, depending on their smartness target level. The levels are divided into ▲(Basic) digitalization of production information ▲(Advanced 1) real-time collection and analysis of production information ▲(Advanced 2) real-time control of production process.

In addition to supporting business expenses, we plan to provide policy support for mutual cooperation, including rational profit distribution, decision-making, and technology protection, through specialized organizations to ensure fairness and transparency between collaborating companies and to enable sustainable commercialization.

Details of the support project can be found on the website of the Ministry of SMEs and Startups or through the Smart Factory Project Management System Project Announcement of the Small and Medium Business Technology Information Promotion Agency. Applications can be submitted through the Smart Factory Project Management System.

Meanwhile, the Ministry of SMEs and Startups plans to separately promote the 'General Digital Cluster' project in January next year, which will focus on supporting innovation platforms for collaborative entities such as similar industries and industrial complexes led by innovative ventures and startups, and support various collaborative businesses based on smart factories.