South Korea to expand AI smart factory program with LG and SMEs
The Ministry of Trade, Industry and Energy, also known as the Ministry of SMEs and Startups, said on this day it visited LG’s Production Technology Institute in Pyeongtaek, Gyeonggi Province, to inspect an active site for the “Win-win AI Smart Factory” project and discuss ways to expand manufacturing AI through government–big business collaboration.
Minister Han Seong-sook participated in a demonstration of LG’s smart factory solutions and a site tour, then held a roundtable with LG Electronics executives and representatives from small and medium-sized enterprises participating in the support program. The meeting focused on successful cases and on-site challenges.
The ministry’s “Win-win AI Smart Factory Construction Support Project” is designed to have large companies share their manufacturing AI technology and infrastructure with SMEs through a cooperative framework. LG Electronics is contributing by packaging AI solutions, smart factory platforms, and automation equipment that leverage LG AI Research Institute’s EXAONE technology.
Minister Han said that as global manufacturing competition intensifies, incorporating AI into manufacturing is no longer optional but essential. She added that the government intends to expand the program’s scale this year so that more SMEs can benefit.
This initiative fits into Korea’s broader push to accelerate digital transformation in its manufacturing sector by pairing corporate-scale AI capabilities with smaller suppliers, helping to raise productivity and resilience across supply chains. Pyeongtaek, where LG’s facility is located, is a major manufacturing and logistics hub near Seoul.
For U.S. readers, the program illustrates how Korea is attempting to strengthen its industrial base and supplier networks through targeted public–private partnerships. The emphasis on AI-driven manufacturing, including packaged solutions like EXAONE, could influence global supply chains, technology transfer, and potential collaboration opportunities with Korean conglomerates and their international partners.
Observers will likely watch how the expansion unfolds and whether similar models spread to other sectors or attract cross-border participation, potentially affecting competition, pricing, and access to advanced automation and AI technologies in the global market.