Korea to invest $96 mn with private sector to accelerate digital transformation

First Industry Vice Minister Jang Young-jin [Courtesy of the Ministry of Trade, Industry, and Energy]

The South Korean government will invest 123.5 billion won ($95.89 million) with the private sector to accelerate the digital transformation of key industries such as automobiles, shipbuilding, and secondary batteries.

Under the plan finalized during a meeting led by the Ministry of Trade, Industry, and Energy on Friday, the government and private sector plan to invest 123.5 billion won from next year to drive digital transformation in major processes of five industries – automobiles, shipbuilding, secondary batteries, foundational industries, and machinery.

In the automotive sector, the digital transformation will involve building a system for collaborative data utilization between finished car manufacturers and their partners in areas such as electric vehicle production, quality, and supply chain.

This aims to reduce unnecessary costs such as duplicate quality inspections and supply chain disruptions caused by the lack of data sharing.

In the shipbuilding sector, a smart ship platform will be established that connects ship data with data from ports, logistics, and equipment in real time. This will optimize logistics in ports and predict equipment failures in advance for maintenance.

In the secondary battery sector, a groundbreaking technology based on artificial intelligence (AI) will be developed to automate the cathode material process, which relies heavily on skilled workers, in collaboration with local secondary battery value chain companies.

For foundational industries, the know-how of AI-controlled plastic injection production from major domestic companies will be shared with partner companies. This initiative will support the uniform production of high-quality components in regions where it is difficult to secure skilled workers.

In the machinery sector, data generated by machinery equipment, robots, and facilities in factories will be integrated and linked based on international standards.

Additionally, an AI autonomous manufacturing platform will be established, enabling high-level production and logistics optimization, as well as high-quality mass production of various products.

“Industrial digital transformation brings about a triple effect of enhancing industrial competitiveness through process innovation, resolving labor shortages, and preventing major accidents,” said First Industry Vice Minister Jang Young-jin. “The government will make efforts to create successful cases of industrial digital transformation and promote the rapid integration of AI across the entire industry.”