- MOTIE-SNU launch national AI model for manufacturing
- $35M investment targets smart factories by 2026
- Aims 20% productivity boost vs. U.S., China rivals
South Korea's Ministry of Trade, Industry and Energy (MOTIE) has joined forces with Seoul National University (SNU) to develop a nationwide artificial intelligence-based model specifically designed for the manufacturing industry, with a view to elevating the country's industrial competitiveness through digital transformation of an advanced nature. The program exemplifies a strategic blend of government and university resources to seek solutions to such urgent problems as those of intelligent factories, predictive maintenance, and supply chain optimization in the heat of the growing global technological competition.
The "National Manufacturing AI Model" project will combine the futuristic research of SNU in areas such as machine learning and data analytics with the industry-related data of more than 5,000 manufacturing companies collected by the ministry. Work is expected to start in the first quarter of 2026, with a launch capital of 50 billion won (near $35 million) paid out of the ministry's digital innovation budget. The AI framework is intended to gather data instantly from IoT sensors, a robot control unit, and business software, thus allowing prediction-based decisions in the case of machinery breakdowns, quality control improvements, and production lines' energy-saving. As an initial step, the program focus will be on the semiconductor, automotive assembly, and shipbuilding sectors, where South Korea enjoys worldwide leadership.
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MOTIE Minister Ahn Duk-geun considered the partnership as a "game-changer for Korea's manufacturing renaissance" and said, "The embedding of AI in our factories as the very core will not only raise productivity by up to 20% but also help us maintain our lead over the tech giants of the U.S. and China." Likewise, SNU President Sung Chul Bae announced, "This model will make AI tools accessible to SMEs, thus closing the gap between big conglomerates and small players, and enabling them to grow together."
The effort corresponds to Korea's extensive "Digital New Deal 2.0" plan, whose ultimate objective is the integration of AI in 30% of manufacturing operations by 2030. Besides, the program features the establishment of an ethically governed AI system, protection of data privacy, and setting up of re-skilling courses for the workforce to alleviate the risk of job losses. As the plan proceeds, it will be a source of new ideas in related fields, an invitation to foreign companies to use the technology, and joint R&D with friendly countries like Japan and the EU, thus consolidating South Korea's position as a leader in AI-powered manufacturing.