[K-Tech] S. Korea pushes AI adoption in manufacturing with new funding program

By Lim Jaeho Posted : July 31, 2025, 13:42 Updated : July 31, 2025, 13:42
Ministry of Trade Industry and Energy at Building 13 Government Complex Sejong  Aju Business Daily
Ministry of Trade, Industry and Energy at Building 13, Government Complex Sejong / Aju Business Daily
SEOUL, July 31 (AJP) - South Korea's Ministry of Trade, Industry and Energy announced Wednesday it will launch a new initiative to promote AI adoption in the manufacturing sector, with applications for implementing agencies opening July 31. The project is part of the second supplementary budget for 2025.

The program is designed to help manufacturers integrate and validate AI solutions on-site, speeding up digital transformation across the industry while also strengthening the capabilities of AI developers.

Through the open call, the ministry plans to select six consortia, one per industry segment, focusing on sectors where AI implementation is seen as both urgent and likely to produce a broad impact.

Each consortium will be led by a medium-sized manufacturing company, working in collaboration with AI providers, universities and research institutes, and regional support centers. Together, they will build a cooperative network centered on practical, field-based AI use in manufacturing.

Manufacturers will provide access to industrial data and establish testing environments with the necessary systems and equipment. AI providers will collect and process the data securely, then fine-tune their existing AI solutions to fit the specific needs of each site before applying and validating them in the field.

Sector-specific associations will oversee the creation of shared manufacturing datasets, excluding sensitive business information so they can be used across the industry. These groups will also help spread successful outcomes from the program more broadly to ensure wider industry uptake.

To ensure active participation and reflect actual industry demand, the government will operate the program on a 50-50 matching basis, requiring manufacturers to cover half the cost of implementing AI solutions.

Eligibility will be limited to medium-sized enterprises to amplify the program’s impact through vertical diffusion across the supply chain.

"A small upfront investment from the government is expected to encourage voluntary industry participation and accelerate private AI investment, leading to faster and broader adoption throughout the manufacturing sector," said a ministry official.

The application period runs from July 31 to September 1, with an information session scheduled for mid-August. The briefing will offer a platform for manufacturers and AI vendors to share successful cases, on-site experiences, and insights on practical implementation.

Lee Seung-ryul, Director General for Industrial Policy, added, "We’ll continue to connect our various AI initiatives with special focus on ensuring the benefits reach all sectors and regions."
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