Ministry of SMEs and Startups supports smart factory construction with local governments

The Ministry of SMEs and Startups (Minister Oh Young-joo, hereinafter referred to as the Ministry of SMEs and Startups) announced on the 25th that it will be conducting a public notice for the 2025 Regional Specialized Smart Factory Construction Support Project (hereinafter referred to as the Regional Specialized Smart Factory).

The regional smart factory project is a new collaborative project that promotes the government's support for building smart factories and local governments' support for fostering regional specialized industries to solve regional issues. This year, three local governments, Gyeongbuk, Jeonnam, and Jeonbuk, are participating.

The Ministry of SMEs and Startups will provide KRW 6 billion in total, KRW 2 billion per region, as advanced stage construction costs, and local governments will match KRW 10.45 billion in local funds for basic stage construction and specialized projects, for a total of KRW 16.45 billion. Companies introducing smart factories will receive support for 50-80% of the construction costs, and can also receive local government-specific programs such as technical support and commercialization support.

By region, Gyeongbuk will support the construction of smart factories (50) in the food manufacturing sector with a budget of 4 billion won. In addition, support will be provided through linking with regional specialized programs such as business support for supporting companies, such as building cooperative networks, technical consulting, and certification evaluation, as well as policy funds, marketing, and strengthening export capabilities.

Jeollanam-do plans to support 5.75 billion won in costs necessary for the introduction of smart factories (40 companies) and the establishment of manufacturing robots and equipment (5 companies) to facilitate the digital transformation of local companies in the food manufacturing industry.

In Jeonbuk, 6.7 billion won will be invested in the agricultural life bio sector to support the introduction of smart factories (35 plants), and specialized programs such as technology commercialization, new product development, marketing, export certification, and smart HACCP education and consulting will also be operated for construction companies.

Mr. Kwon Soon-jae, head of the Manufacturing Innovation Division of the Ministry of SMEs and Startups, said, “I hope that this project will serve as an opportunity for the central government and local governments to work together to make local companies’ manufacturing sites smart and jointly resolve local issues,” adding, “In the future, we will expand the support budget and target regions by considering local demand.”

The announcement of the regional smart factory project will be conducted by region, and the announcement can be viewed on the Smart Factory Project Management System website from the 25th. Companies wishing to participate can write a business plan according to the regional announcement and apply online. For detailed inquiries related to the project, you can receive guidance from the operating agency in each region.


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