The Ministry of Trade, Industry & Energy (MOTIE) announced on March 10 that it has assisted in the construction of smart factories in 1,240 small and medium enterprises (SMEs) and the smart factories, which can be defined as facilities that are fully automated based on information technology, have improved the SMEs’ productivity by approximately 25%.
“Specifically, their positive effects took the form of a 27.6% decrease in fraction defective, a cost reduction of 29.2% and a 7.1% reduction in the length of time taken for prototype production,” the ministry explained, continuing, “In addition, their exports increased with their product lineups being diversified.”
The MOTIE added, “The North Gyeongsang Provincial Center for Creative Economy and Innovation that President Park Geun-hye visited on March 10 assisted in the project for 137 SMEs last year, which resulted in a product quality improvement of 77%, a productivity improvement of 139% and much more supply contracts with foreign clients.”
The ministry is planning to help 800 or so companies to build smart factories this year. To this end, it is going to raise a fund of 57.5 billion won, 22.3 billion won of which is to be derived from the private sector.