On July 20, Kim Jeong-kwan, South Korea's Minister of Trade, Industry and Energy, visited the Banwol-Sihwa Industrial Complex and stated, "Advanced countries like the United States and China are aggressively increasing investments to win the AI competition, marking the arrival of an era of significant change." He emphasized the need to support numerous small and medium-sized enterprises (SMEs) in creating data and utilizing AI models, aiming to realize a 'miracle of SMEs' in Banwol-Sihwa and expand it across the nation’s industrial complexes and manufacturing sectors.
During a meeting at the Siheung Business Center with companies located in the industrial complex, academic and research institutions, and local governments, Minister Kim discussed the 'Banwol-Sihwa Materials and Parts MINI Alliance.' He noted, "Securing competitiveness through the industrial AI transition (M.AX) in the materials, parts, and equipment sectors, which are the foundation of South Korea's manufacturing industry, is essential for winning the AI revolution on a national level. Today, M.AX is no longer a choice but a matter of survival."
The Banwol-Sihwa Industrial Complex is the largest in the metropolitan area, housing over 22,000 companies across various sectors, including machinery, electronics, petrochemicals, and steel. With 96.8% of its manufacturing firms employing fewer than 50 people, it is considered an optimal site for demonstrating and expanding the SME-focused M.AX.
The Ministry of Trade, Industry and Energy believes that AI models tested in Banwol-Sihwa, which features a diverse range of industries and processes, can be disseminated throughout the nation’s industrial complexes and manufacturing supply chains.
At the meeting, participants discussed strategies for establishing an M.AX cluster within the Banwol-Sihwa MINI Alliance. They agreed to pursue a horizontal M.AX diffusion model that accumulates and shares equipment, process, and operational data, rather than relying solely on a few anchor companies. This approach aims to help SMEs overcome limitations related to investment resources, specialized personnel, and data availability.
Additionally, leveraging the diverse and multi-process characteristics of Banwol-Sihwa, plans are underway to convert the tacit knowledge of skilled workers—such as their intuition, expertise, judgment, and ability to handle exceptions—into data. The ministry plans to develop AI models tailored to the actual needs of SMEs in areas like quality control, process optimization, and equipment management.
Instead of fully automated, unmanned factories, a 'Banwol-Sihwa AI Factory' will be established, applicable to individual SME processes. This initiative aims to develop small yet complete AI success models that can be validated and expanded to similar processes and industries, allowing SMEs to experience M.AX outcomes at a lower cost.
As part of the AX demonstration industrial complex project, the 'AX Hub for AI Manufacturing Innovation Demonstration in Banwol-Sihwa' will be promoted, with a total investment of 28.05 billion won by 2028, including 14 billion won from the national budget. The plan includes establishing leading AX factories in the automotive parts and printed circuit board (PCB) sectors, as well as supporting AI model development and dissemination through an AI open lab and comprehensive AX support center.
Minister Kim remarked, "The Banwol-Sihwa Industrial Complex is a miniature version of South Korea's manufacturing industry, with over 20,000 SMEs and the accumulated experience of numerous skilled workers. If we can standardize the data generated during the manufacturing processes and the non-standardized tacit knowledge, it can serve as a foundation for developing universal models applicable across South Korea's manufacturing sectors."
He added, "In a situation where anchor companies are lacking, it is essential for businesses, innovation institutions, and local governments to collaborate and unite in promoting M.AX. I hope the MINI Alliance will lead this effort, evolving into a regional industrial innovation model driven by the overwhelming number of SMEs working together."
Furthermore, he stated, "To establish an M.AX cluster based on materials and parts, we will spare no effort in supporting local governments with initiatives such as 5G specialized networks, edge AIDC, M.AX academies, and dark factory strategy development."
* This article has been translated by AI.
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