Manufacturing AI

Manufacturing AI
smart factory

It is an AI program, but what really decides the outcome is data. Without accumulated process data, no AI has anything to learn from, which is why data collection and validation is a separate stage.

AI factory build
Up to KRW 200M
Support ratio
Up to 50%
Data collection and validation
Up to KRW 50M

Figures below follow the 2026 call. They change by year, so check that year's call before applying.

Preparing before you apply

  1. Check the call

    Eligibility and conditions of the program

  2. Site priorities

    Processes and metrics to improve

  3. Plan

    Scope · cost · schedule

  4. Apply · review

    Follow the procedure in the call

Check the program's call for detailed conditions and dates.

Check first

Data comes first

The 2026 call has a data collection and validation stage separate from the AI factory build. If you have no collected data yet, it makes sense to start by reviewing that stage.

What the program is

A track that supports AI tailored to the industry and processes of a manufacturing site. It addresses process optimization and predictive maintenance with technologies such as AI agents and on-device AI.

Under the 2026 call, the AI factory build offers up to 9 months, up to KRW 200 million and a support ratio of up to 50%, and data collection and validation separately offers up to 6 months and up to KRW 50 million. The large–small win-win type also has an AI track, with government support of up to 50%.

The point where this program most often goes wrong is whether the data exists. Predictive maintenance needs failure history together with the equipment condition just before each failure; process optimization needs conditions and results tied to the same axis. Plan AI first without that data, and much of the build period is spent cleaning data.

What is supported

As of the 2026 call.

Item2026 call
EligibilityKorean SMEs and mid-sized manufacturers
AI factory buildUp to 9 months · up to KRW 200 million · support ratio up to 50%
Data collection and validationUp to 6 months · up to KRW 50 million
Example technologiesAI agents, on-device AI and similar
Example applicationsProcess optimization, predictive maintenance
Win-win AI trackGovernment support up to 50% of the build cost

How to apply

The overall flow is the same whatever the type.

  1. STEP 01

    Check the call for applications

    Start with the current year's call: the funding cap, cost-share ratio, eligibility and application window. Requirements differ by type, so read the call for that specific type rather than the combined announcement.

  2. STEP 02

    Choose a supplier and agree the scope

    Decide what to build and prepare the business plan with your supplier. Survey equipment communication and the signals you can collect at this stage, or the plan will not be realistic.

  3. STEP 03

    Write the business plan and apply online

    Applications go through the smart factory programme portal. The adopting company is the applicant; for consortium types, both the company's and the supplier's details are required.

  4. STEP 04

    Selection, agreement, build

    After evaluation and selection you sign an agreement and start the build. Changes outside the agreed scope need a separate procedure, so it is better to fix the scope at the planning stage.

  5. STEP 05

    Inspection, settlement, follow-up

    The build is inspected and project costs are settled. Improvements and upgrades needed in operation continue in later stages.

Where to apply and whom to ask

CategoryDetails
Apply atSmart factory programme portal
OperatorSmart Manufacturing Innovation Agency 044-300-0953 · 0957
General enquiriesSME integrated call center 1357

Useful to prepare

With the information below, writing the plan goes faster.

  • Business registration certificate and recent financial statements
  • Target processes or lines and the problems you face today
  • List of equipment and how it communicates (maker and year if possible)
  • Systems in use (ERP and so on) and integration needs
  • Preferred build scope and timing

Where it often goes wrong

Caution

Data collection comes before AI

First confirm which signals each machine can provide and whether the values match reality. How to judge collection routes is covered in the equipment communication survey.

Caution

Decide what you want to predict first

"Adopting AI" is a means, not a goal. If you do not decide which judgement to automate and what data that judgement needs, the model you build will not be used.

Compare with other types

The right program depends on your situation.

Sources and when they were checked

Source note

The figures above are as of the 2026 calls and change every year. Always check the original call for the year in question for funding caps, cost-share ratios, schedules and eligibility.

Source: Ministry of SMEs and Startups and the Smart Manufacturing Innovation Agency, "2026 Integrated Call for Smart Manufacturing Innovation Support Programs", Bizinfo (bizinfo.go.kr). Checked 30 August 2026.

Quick Answers

Manufacturing AI smart factory: key answers

What companies most often check at the review stage.

Can we apply without training data?

That is exactly why the data collection and validation stage exists. Still, before applying you should survey which values each machine can provide, or the plan will not hold.

Does our company data leave the premises?

It depends on how the system is built. It can be run in-house on premises, and at manufacturing sites this is often a contractual requirement. The on-premises entry sets out the criteria.

Which processes suit it best?

Processes where conditions and results are linked through data, such as molding conditions and defects, or coating conditions and inspection verdicts, where cause and effect sit on the same axis.

What does predictive maintenance need?

Failure history together with the equipment condition data just before each failure. If maintenance records exist only on paper, setting up a recording system comes first. See the preventive maintenance entry.

How do we decide the scope of AI?

Work back from what you want the AI to judge. With U-AI, IYULAB checks applicable areas along five axes before setting the scope.

Sources and standards

Terms and procedures on this page follow the public standards and official sources below. Figures are as of each source's publication date.

Key facts
TopicManufacturing AI smart factory
SectionSmart factory grants
Standards applied1st Smart Manufacturing Innovation Survey (Ministry of SMEs and Startups and the Smart Manufacturing Innovation Agency, announced 28 April 2025) · Smart Manufacturing Innovation Agency, smart factory programme portal (smart-factory.kr)
Public recordGS certification grade 1 of 2 grades · 7 patents registered
Reviewed byIYULAB engineering team
Last updated

Public record: GS certification, grade 1 of 2 grades (U-CMMS 3.0, Telecommunications Technology Association) · 7 patents registered (10-2141840, 10-2141847, 10-2147747, 10-2354546, 10-2408497, 10-2408501, 10-2698341; searchable by number on KIPRIS) · Certifications and patentsReviewed by the IYULAB engineering team · Last updated:

Let's find the type that fits your site

Once we see your equipment and the scope you want to build, it becomes clear which program fits.

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