The South Korean government will support approximately 25 trillion won in investment plans from companies in the Gumi region, focusing on advanced industries such as semiconductors, robotics, defense, and artificial intelligence (AI) data centers. A collaborative system will also be established to promote the transition to AI in manufacturing across the Gumi, Cheongju, and Pohang industrial complexes.
The Ministry of Trade, Industry and Energy announced that Minister Kim Jeong-kwan visited Gumi on October 28 to inspect advanced manufacturing sites and support corporate investments and the transition to AI in manufacturing. This visit marks the ninth field trip to the '5 regions and 3 special zones' following a visit to Gangwon on October 14. It is the second visit to the Daegu-Gyeongbuk region since February.
Minister Kim began his visit at LG Innotek's Gumi Plant 4, where he attended the opening ceremony of the Battery BaaS (Battery as a Service) testing and demonstration center. He also participated in a meeting with local investment companies and the third M.AX regional expansion conference.
At LG Innotek's Gumi Plant 4, he inspected the semiconductor substrate production line. The plant produces FC-BGA (Flip Chip Ball Grid Array) semiconductor substrates used in high-performance semiconductors and processors for data centers.
Minister Kim stated, "We will actively support investments from key companies like LG Innotek to ensure Gumi continues to grow as a core production hub for semiconductor components."
Following this, the opening ceremony for the Battery BaaS testing and demonstration center was held at the Gumi National Industrial Complex. Battery BaaS refers to a service model where batteries are leased or exchanged without direct ownership. The newly opened center will verify the safety and performance of used batteries for reuse.
The center will support the demonstration of business models for battery leasing, subscription, and reuse through classification, sorting, and safety and reliability verification. The construction project for the center will invest a total of 27.22 billion won from 2023 to 2027, consisting of 10 billion won from the national budget, 15 billion won from local funds, and 2.22 billion won from private investment. This opening is significant as it establishes a foundation for evaluating the quality and safety of used batteries.
During the ceremony, Minister Kim remarked, "We will support the transition to new business models such as battery subscriptions and rentals, ensuring that the reuse of used batteries becomes a new growth engine for the Gumi region."
The minister will also address the challenges faced by local investment companies. The luncheon meeting will include representatives from seven companies in the semiconductor sector, including LG Innotek, SK Siltron, and Jahwa Electronics, as well as Samsung Electronics, LIG D&A, LS Cable, and Samsung SDS. These companies have investment plans totaling approximately 25 trillion won in the Gumi area.
The Ministry will listen to the concerns regarding power supply, infrastructure, and workforce development that arise during the investment process and discuss solutions with relevant departments and local governments. Minister Kim emphasized that support will be strengthened according to the principle of "the further from the capital, the more robust the support."
The ministry is also launching initiatives to expand the AI transformation in manufacturing to the region. In the afternoon, the third M.AX regional expansion conference will be held in Gumi, where the 'MINI Alliance' will be established to promote tailored manufacturing AX in the Gumi, Cheongju, and Pohang industrial complexes.
The MINI Alliance will create a collaborative system where manufacturing companies in industrial complexes work with AI specialists to develop AI transition strategies and implement demonstration projects. With the establishment of this new organization, the number of MINI Alliances operating in industrial complexes will increase to 13.
The Ministry plans to launch a total of 25 MINI Alliances by 2030 to expand the AI transformation in manufacturing nationwide, centered around industrial complexes. A new initiative called the 'Industrial Complex Demonstration Expansion Track' will also be introduced to extend AI technology beyond specific processes of individual companies to other firms within the same industrial complex.
While the existing AI factory leading projects focused on developing AI models tailored to specific processes of individual factories, the new initiative aims to disseminate highly versatile AI models to companies in the same industry within industrial complexes. The ministry reported that an analysis of 38 successful cases from existing AI factories showed an average productivity increase of 30.1% and a 15.5% reduction in defect rates. The government aims to concentrate its policy efforts on expanding these achievements across entire industrial complexes.
The ministry will also operate an 'M.AX Meetup Day' to connect local manufacturing companies with AI specialists, expecting around 250 participants, including 10 AI companies and 150 manufacturing firms.
Emphasizing that the transition to AI in manufacturing is crucial for survival, Minister Kim stated, "We will support the establishment of a collaborative platform among companies and the training of specialized AI personnel to ensure that industrial complexes become hubs for M.AX expansion."
* This article has been translated by AI.
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