The Ministry of SMEs and Startups (Minister Han Sung-sook, hereinafter referred to as the Ministry of SMEs and Startups) announced that it will be recruiting metropolitan local governments (excluding Seoul) to promote the '2025 Regional-Led AI Transformation' project, which aims to rapidly transform small and medium-sized enterprises in regions with low AI utilization rates, starting on the 30th (Wednesday).
This project, planned as a new project through the second supplementary budget in 2025, has a budget of 35 billion won and will support various AI utilization and expansion programs planned by metropolitan local governments that reflect the characteristics of local industries.
Five metropolitan local governments will be selected and provided with an average of KRW 7 billion (up to 60% of the total project cost). Metropolitan local governments must match at least 40% of the total project cost, including the SMEs' own contributions. Furthermore, to promote competition and business performance, differentiated support will be provided based on evaluation results.
AI is emerging as a key element of corporate competitiveness. However, according to a 2024 survey by the Korea Chamber of Commerce and Industry and the Korea Institute for Industrial Economics and Trade, the AI utilization rate among SMEs stands at 28.7%, compared to 48.8% among large corporations. Furthermore, the rate among non-metropolitan companies is 17.9%, compared to 40.4% among metropolitan companies, demonstrating significant regional disparities. This project aims to enhance SME competitiveness and mitigate the regional AI gap by rapidly utilizing and expanding AI in regions with low AI utilization rates.
Metropolitan local governments seeking to collaborate can apply for various programs, including the development and distribution of AI solutions freely planned to reflect the industrial characteristics of their region, the establishment of AI verification test beds and cloud-based AI environments, and the strengthening of AI utilization capabilities for corporate employees.
For detailed information, including business plans, please contact the SME AI Utilization and Expansion Task Force at the SME Venture Business Agency (055-751-9646, 9647). Applications should be submitted by August 29th, referring to the announcement. Document review and in-person evaluations will assess project implementation capacity, expertise, feasibility, and self-funding capabilities. The five metropolitan local governments will be selected in October.
Minister Han Seong-sook stated, “I hope that through the rapid utilization and expansion of AI by local SMEs, the productivity and competitiveness of participating SMEs will rapidly improve. We will continue to work to strengthen the AI capabilities of SMEs going forward.”
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