Sejong, October 5 - On September 18, at an Emergency Ministerial Meeting on Economic Affairs and Meeting on Export and Investment Promotion presided over by the Deputy Prime Minister for Economic Affairs, the Ministry of SMEs and Startups (MSS) announced the 'Manufacturing Innovation and DX Acceleration Strategy (MIDAS 2027)'. This strategy includes direction for the digital transformation of the small and medium-sized manufacturing industry and the action plan of the Yoon administration.

[Background]
The government has been promoting smart factories since 2014 in response to the digital transformation trend in manufacturing, laying the foundation for the digital transformation of small and medium-sized manufacturing companies.

Government-led support was limited and failed to address manufacturing site needs.

MSS has collaborated with concerned government offices to establish 'MIDAS 2027' based on the achievements and lessons learned from past policy initiatives. This initiative aims to implement the government's national agenda of digitally transforming small and medium-sized manufacturing industries.

[Key Contents of the 'MIDAS 2027']

First, MSS will customize support for digital manufacturing innovation based on businesses' capabilities from beginning to end, breaking from the long-standing government-led uniform support approach.

When SMEs apply for projects to innovate manufacturing, they will receive specialized support based on assessments by private experts, whether it involves creating new models, improving current ones, or laying the foundations for intelligent factories. In addition, MSS will provide thorough post-support management to enhance businesses' core competencies.

The government aims to aid 5,000 businesses by 2027, focusing on promoting advanced factory models. Local governments will also be encouraged to support the creation of initial-stage factories or allow private entities to utilize policy finance to establish 20,000 such factories. This initiative aims to foster 25,000 digital manufacturing innovation companies by 2027 through government, regional, and private sector collaboration.

Specifically, companies with solid capabilities will be fostered as leading models for digital transformation, incorporating AI and digital twin technologies to minimize worker intervention in autonomous factories or through digital collaboration factories among companies within the value chain. The government will assist companies with different levels of digital manufacturing capabilities. Those with moderate capabilities will receive support to become advanced digital manufacturing factories. It will involve the automation of equipment and processes based on manufacturing data. Companies with somewhat limited capabilities will be supported in creating foundational stage factories that meet their specific needs. These factories will include robots, automation equipment, and digitalization of production information. It will help improve the production environment and address labor shortages.

Second, the government will establish a digital manufacturing innovation ecosystem based on the standardization of manufacturing data at the international level.

A Korean-specific manufacturing data standard model will be developed to improve the efficiency of utilizing manufacturing data. Currently, the data is used inconsistently across factories, hindering smooth business collaboration. The upcoming standard model will be designed to comply with the data standards of manufacturing giants like the EU and the US.

This will enable smoother collaboration and more efficient data usage in the manufacturing industry. Additionally, guidance development, dissemination, and technical support will be provided to equipment manufacturers and technology suppliers to facilitate the adoption of these standards.

Furthermore, by building upon standardized data, the government will promote the realization of a data economy by facilitating smooth data sharing among businesses and processes. This will include operating an online manufacturing data exchange where companies can register, search, and purchase manufacturing data.

Thirdly, the government will establish a sustainable network led by the private sector and local regions.

The government will support digital manufacturing innovation among small and medium-sized manufacturing companies by promoting voluntary collaboration with technology suppliers and large enterprises. A Manufacturing Innovation Portal will be established to facilitate collaboration between demand companies and optimal partners. This portal will allow companies to search for collaboration partners based on factors such as location and technology field and engage in online consultations.

Additionally, the government will encourage large corporations to partner with SMEs to build mutually beneficial factories, enhancing cooperation among them.

Techno Parks (TPs) will be established as a 'hub' to facilitate the digital transformation of local small and medium-sized manufacturing companies. Local governments will have the power to suggest companies that will participate in intelligent factories to be established by the government.

Finally, the government will strengthen technology suppliers' capabilities, another crucial aspect of digital manufacturing innovation. It will also encourage all project participants to adhere to a healthy market order.

Technology suppliers can improve their business capabilities by utilizing the consulting services provided by private experts. Results in building intelligent factories and other relevant information will be made public to promote the market participation of outstanding technology suppliers. Additionally, opportunities to participate in government projects will be expanded for advanced technology suppliers specializing in artificial intelligence, digital twin technology, and similar fields. 

Voluntary market monitoring activities led by the industry will be conducted to ensure the efficient implementation of government projects. An online misconduct reporting center will be established to monitor project expenditure closely. Any company found guilty of misconduct will face strict sanctions such as participation restrictions and expense recovery.

Minister LEE Young stated, "MSS has developed a strategy that leverages the capabilities of relevant ministries to effectively implement the national agenda of digital manufacturing innovation in small and medium-sized manufacturing companies. The ultimate goal is to lead the manufacturing sector into a new era of prosperity." She added, "The government, private sector, and regional entities will collaborate to nurture 25,000 digital manufacturing innovation companies by 2027 to achieve qualitative and quantitative enhancement in intelligent factories."
 
 

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Rachel Minjo Chun
Spokesperson for Foreign Media
044-204-7104
rachelmchun@korea.kr