A Closer Look at 2024 Smart Factory Support Programs and Vouchers
The smart factory is often called the future of manufacturing. Emerging alongside the Fourth Industrial Revolution, the smart factory is an approach to manufacturing innovation that means digital transformation across the entire value chain — not only production automation but also planning, distribution, and sales. A smart factory connects a wide range of devices to the internet using IoT and M2M (machine-to-machine) technology, monitoring each device and machine and enabling remote control and automation. To raise productivity, AI analysis of the data collected from IoT and M2M devices can also drive improvements that optimize production activities.
Companies adopt smart factories because they deliver PQCD (Productivity, Quality, Cost, Delivery) innovation. Most small manufacturers are admittedly still at the stage of automating manual work rather than full digitalization, but even at that stage the effects are clear: productivity and product quality improve while cost and delivery time go down. A survey of 7,903 companies that adopted smart factories over the five years from 2014 to 2018 found that, compared with the year before the project, they achieved on average a 28.5% increase in productivity, a 42.5% improvement in quality, a 15.5% reduction in cost, a 16.4% improvement in on-time delivery, and 2.6 additional employees hired.
Seen as a way to revive a manufacturing sector that has hit its growth limits, the smart factory is now recognized as a necessity by many companies. Yet the cost of the transition and the difficulty of building systems tailored to each business leave many small manufacturers hesitating. Fortunately, the government runs a variety of programs to help small businesses adopt smart manufacturing technology, providing support in the form of grants and vouchers to drive manufacturing innovation and export growth. So — how can small businesses adopt a smart factory without the burden? Let’s take a look together.
The AI Voucher Support Program
This program helps demand-side companies (small businesses, ventures, mid-sized companies, and medical institutions) that want to apply AI adopt the best-fit AI in a short period of time. The Ministry of Science and ICT and the National IT Industry Promotion Agency (NIPA) issue vouchers to demand-side companies so they can purchase AI solutions developed by Korean AI solution companies, and the companies use the vouchers to adopt the AI solutions they want and advance their digital transformation. Demand-side companies find a suitable supplier within the published supplier pool (to be uploaded once confirmed for 2024), form a consortium, and apply for an AI Voucher program project.
(Eligibility) Korean small businesses, ventures, and mid-sized companies, as well as medical institutions under the Medical Service Act, that want to purchase AI solutions and apply them to their own products and services
(Funding) Up to KRW 300 million per project(as of 2023)
– After project selection, amounts may vary by project depending on the budget review results
– The portion of total project costs not covered by the government grant must be matched privately (cash or in-kind)
The process for adopting a smart factory through the AI Voucher is as follows.
1. Find a suitable supplier in the supplier pool and form a consortium
2. Prepare and submit the project business plan (during January)
3. Selection evaluation including a presentation review, followed by the final selection announcement and agreement signing
4. Adopt the smart factory together with the supplier
5. Report results and complete the final evaluation
The Data Voucher Support Program
This program provides vouchers for data purchasing and processing services to companies that need data and AI to innovate their business and create new services and products. The Data Voucher Support Program issues vouchers so demand-side companies can purchase data sales and processing services from Korean data companies. Companies that want to apply should visit the Data Voucher portal to review the data products and processing services, then follow the call-for-applications guidance and submit through the Data Voucher program management system. Applications are only accepted for data products and processing services designated and registered on the Data Voucher portal, so it is important to match well with a supplier that offers the data products you want.
(Eligibility) Early-stage mid-sized companies, small businesses, micro-enterprises, and prospective founders in Korea that want to leverage data and AI
(Funding) Up to KRW 60 million per project(as of 2023)
– A partial co-payment is required beyond the government grant
The process for adopting a smart factory through the Data Voucher is as follows.
1. Review products and services on the Data Voucher portal
2. Submit the required documents and the project execution plan through the Data Voucher program management system (during March)
3. Selection evaluation, followed by the final selection announcement and agreement signing
4. Adopt the smart factory together with the supplier
5. Report results and complete the final evaluation
The Cloud Service Adoption and Diffusion Program
This program supports the use of cloud services to drive digital transformation at Korean small businesses. By comprehensively covering cloud adoption consulting and usage fees, it aims to energize the domestic cloud market and strengthen the competitiveness of small businesses. To support each company’s digital transformation, it funds adoption consulting tailored to the company’s work environment, cloud migration (data transfer and training costs), and service usage fees. Most demand-side companies choose the usage fee support and use cloud services from the cloud service pool (to be uploaded once confirmed for 2024).
(Eligibility) Korean small businesses that want to digitally transform their work environment
(Funding) Up to KRW 15.5 million per project(as of 2023)
– A 20% cash co-payment applies
The process for adopting a smart factory through the Data Voucher is as follows.
1. Explore suitable services in the supplier cloud service pool
2. Prepare and submit the application materials (March-May)
3. Selection evaluation, followed by the final selection announcement
4. Adopt the smart factory together with the supplier
5. Review outcomes upon completion
The government programs above are valuable for small businesses that want to adopt a smart factory but find in-house development out of reach. For companies short on funding and looking to reduce risk, the government covers a set amount of the cost, lowering the hurdle to digital transformation.
With up to KRW 300 million in project funding (in the case of the AI Voucher program) and a company contribution capped at around 30% or less, it is an excellent opportunity for any company that has been weighing digital transformation. Using a support program reduces the burden of initial adoption costs and lets you adopt services verified through suppliers recruited and screened by the government — both clear advantages.
Daliworks, Your Smart Factory Adoption Partner
Daliworks supports small and mid-sized companies without in-house specialists across the entire journey — from consulting to service and system design, connectivity and device recommendations, and data visualization — so they can achieve a successful digital transformation at a reasonable cost. Daliworks has been selected as a supplier for the AI Voucher, Data Voucher, and Cloud Service support programs for three consecutive years and delivers a wide range of smart factory manufacturing solutions on the proven Thingplus AIoT platform.
AI Motor Diagnostics
-
Analyzes a motor’s current, voltage, and power data to diagnose motor faults and predict motor condition.
Equipment Operation Monitoring
-
A real-time equipment operation monitoring solution based on power data, supporting efficient equipment operations and energy management.
FEMS (Factory Energy Management System)
-
Collects data for efficient factory energy management and provides real-time monitoring and analytics, supporting optimized energy use and cost savings.
If you would like to learn how to adopt a solution through a smart factory support program, contact Daliworks today!
Contact: 02-2274-3254 / E-mail: contact@daliworks.net
