Korea Chamber of Commerce publishes a case of a win-win smart factory for large and small and medium-sized companies

[Image: Korea Chamber of Commerce and Industry]
[Image: Korea Chamber of Commerce and Industry]

[Digital Today Reporter Cho Belieum] The Korea Chamber of Commerce and Industry (Chairman Tae-won Choi) published the ‘2020 Best Practices for Small and Medium-Sized Win-Win Smart Factory,’ which contains the achievements of companies that participated in the support project for the construction of a win-win smart factory.

This Best Practices Book was created to introduce companies to support projects for small and medium-sized, win-win smart factories, and to share business results and cases of excellent companies for about two years.

The support project for building a smart factory for small and medium-sized businesses is a project in which the government provides partial support for the construction cost when business partners such as large companies and small and medium-sized companies build smart factories together. Small and medium-sized companies build smart factories that implement automation and digitalization by applying cutting-edge technologies such as Internet of Things (IoT), artificial intelligence (AI), and big data from the product planning and design stage to production, distribution, and sales. In this case, more than 60% of the total project cost is provided to small and medium-sized companies by combining contributions from large corporations and government subsidies.

Contributing companies such as Hyundai Motor Company, Kia Motors, Hyundai Mobis, LG Electronics, POSCO, Doosan, Korea Midland Power, Korea Western Power, Korea Gas Corporation, Korea South-East Power, and Korea Industrial Complex Corporation have shared growth and manufacturing with small and medium-sized companies through fostering partners. In order to improve innovation capacity, we have been supporting the establishment of a win-win smart factory with small and medium-sized businesses since 2019 with the Ministry of Small and Medium Venture Businesses.

In the first year of the project, which was carried out until 20 years, the project cost of 14.3 billion won was raised, including 8.5 billion won in contributions to large corporations and 5.8 billion won in government subsidies, to support the construction of smart factories for 361 companies. It supports 329 companies in scale.

Small and medium-sized companies that participated in the win-win smart factory construction support project performed well. As a result of a survey of 361 companies that participated in the project in the first year, the productivity improvement effect was found to be an average of 18.7%.

Satisfaction with participation in the project reached 88.1%, and 78.4% answered positively to the questionnaire asking if they were able to secure information and communication technology (ICT) competitiveness through participation in the project. 65% of the participating companies answered that they are willing to build a smart factory voluntarily even after the project is over.

Tae-hee Woo, Vice-Chairman of Daehan Sang, who is in charge of co-director of the Central Promotion Headquarters of the Industrial Innovation Movement, said, “The project to support the construction of a win-win smart factory for small and medium-sized companies has a distinction in that it builds a smart factory suitable for the field of small and medium-sized companies based on active support from large companies.” “As ESG management has become a new normal throughout the industry, it is expected that the support project for building a win-win smart factory for small and medium-sized businesses that is effective in fulfilling corporate social responsibilities through shared growth with partner companies will also become more active in the future. “He said.

The contents of the best case book can be found on the website of the Industrial Innovation Movement.

Author/ Translator: Jamie Kim
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