Wiring harness, non-contact thermometer, and IV set
KRW 1 billion in R&D support for process improvement for three products


To facilitate the return of overseas companies, an automation support project has been launched to improve complex, manual processes.

The Ministry of SMEs and Startups announced on the 24th that it will be accepting applications from companies wishing to participate in the '2020 Process and Quality Technology Development Project' from Friday, September 25th to Monday, October 26th to promote domestic production of wiring harnesses, non-contact thermometers, and IV sets, which are entirely dependent on imports.

The three items were selected by the private sector-led "Reshoring Process Innovation Task Force," launched in August, after comprehensively considering factors such as market ripple effects, job creation, automation potential, and urgency.

Wiring harnesses are bundles of wires that connect to various electrical devices in a car. They are known as a representative automation challenge technology that consists of labor-intensive processes such as cable cutting, insulation crimping, assembly, and testing, and most of them depend on imports from China. Non-contact thermometers and IV kits are also typical manual processes that are mostly assembled and produced in low-wage countries such as China and Southeast Asia.

The Ministry of SMEs and Startups has expanded its support to help companies successfully automate complex, manual processes, such as wiring harnesses, through process innovation and robot adoption. To ensure that technological development outcomes are disseminated to other companies, the support program also includes suppliers that produce automation equipment. Companies selected for technology development projects will receive up to KRW 1 billion (KRW 500 million per year) in R&D funding over two years.

To ensure this support extends beyond a one-time initiative, the Ministry of SMEs and Startups plans to identify at least 30 potential U-turn projects by early next year and provide technology development support for 10 projects annually to steadily increase the chances of successful U-turns for companies that have expanded overseas. Furthermore, the Ministry plans to promote smart reshoring by providing follow-up support for companies that have made U-turns, including smart factories and manufacturing robots.

Kim Il-ho, head of the Smart Manufacturing Innovation Planning Division at the Ministry of SMEs and Startups, said, “In February, domestic automobile production was halted due to a disruption in the supply of Chinese wiring harnesses caused by COVID-19,” and added, “This technology development support is expected to prevent a second wiring harness crisis and reduce the burden of repatriation for companies that have expanded overseas in search of lower labor costs.”

Companies wishing to participate in this project can apply online through the Small and Medium Business Technology Development Project Comprehensive Management System by Monday, October 26.