"First instance of cross-industry member companies joining forces since the launch of KT's 'olleh GiGA IoT Alliance'"

KT announced that it has signed an MOU with Kyodong Food Co., Ltd. to introduce an IoT-based smart factory.

A 'smart factory' refers to a factory that utilizes IoT technology to eliminate unnecessary tasks and contribute to increased productivity.

According to the 'Manufacturing Innovation 3.0 Project,' jointly conducted by the Ministry of Science, ICT and Future Planning and the Ministry of Trade, Industry and Energy, pilot projects are currently underway with the goal of establishing approximately 10,000 smart factories among small and medium-sized enterprises (SMEs) and mid-sized companies nationwide by 2020. However, according to a survey conducted by the Korea Federation of SMEs, 79.2% of companies responded that they have no intention of adopting smart factories due to reasons related to funding and business conditions.

Gyotong Food Co., Ltd., located in Okcheon, North Chungcheong Province, also faced difficulties in securing management personnel and managing inventory at its cold storage plant located on the outskirts of the city. KT supports the creation of an industry-based IoT ecosystem by providing IoT-specialized networks such as LTE-M and the 'IoT Makers' platform. In addition, target SMEs can achieve cost reduction and effective business operations by establishing IoT-based smart factories, without the need to purchase separate equipment, through the streamlining of equipment control, logistics management, and inventory management.

Factories on the outskirts facing labor shortages expect cost reduction and increased productivity.

KT will first develop a mobile system that allows real-time monitoring and control of factory facilities, such as cold storage warehouses, via smartphone even from outside the company, and build a system that predicts and responds to equipment failures in advance by attaching IoT sensors to the facilities.

In addition, the company plans to attach IoT sensors to logistics pallets to monitor inventory status in real time from production to shipment. This enables an accurate First-In, First-Out (FIFO) system, and Kyodong Food expects increased sales through benefits such as maintaining product freshness and reducing waste.

Kim Byung-guk, CEO of Kyodong Food Co., Ltd., stated, “Most factories are located in suburban areas due to the nature of their operations, so there is a severe labor shortage,” adding, “By implementing an IoT-based smart factory, we expect to achieve improved productivity and cost reduction by reducing cumbersome and repetitive tasks while deploying limited human resources to the right places.”

Yoo Yong-gyu, Senior Vice President of KT’s Future Convergence Business Promotion Office, stated, “This MOU marks the first instance of member companies from different industries joining forces since the launch of the 'olleh GiGA IoT Alliance.' We will strengthen collaboration with leading member companies to build smart factories applicable not only to large corporations but also to small and medium-sized enterprises, and take the lead in realizing the creative economy.”