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Korean Smart Manufacturing Strategy

Author Jung Eun-Mi et al. Date 2019.12.12 Page

This study aims to realize smart manufacturing as a strategy for a new leap in Korean manufacturing and transition to new manufacturing amid rapid changes in the global competitive environment and finds the direction of Korean smart manufacturing innovation, by looking at the policies and strategies of major advanced countries. Major countries are actively pursuing smart manufacturing strategies to overcome constraints that came from their industrial structure and to sustain economic growth, and they are taking not only full advantage of the strengths of their manufacturing industries but also shaping up new economic growth visions.

In response to the vision of mid-to-long term industrial development, Korea should also take advantage of our manufacturing industry’s strengths and promote smart manufacturing innovation with differ-entiation in strategic initiatives from other countries. This is because the global paradigm shift, called digital transformation, is providing a crisis and an opportunity at the same time in upheavals and high uncertainty, so proactive use of smart manufacturing is more



<Major Strategies for Korean Smart Manufacturing>



Discover smart


business models by

industry type

Establish strategies for smart manufacturing innovation in connection with the global market

Smart manufacturing prospects by industry based on the characteristics of the market type and process

Diagnosis of innovation capabilities by industry and subject and differentiation of corresponding policy measures (funds, R&D, market creation, etc.)



of smart



Reinforcement of consulting on establishing a mid-to-long term plan and management vision

Providing workplace innovation incentives to respond to smart manufacturing visions and strategies

Promote information links between companies to implement customer-tailored production methods

Resolving the problem of supply and demand of expert personnel related to smart manufacturing





Preparing guidelines for smart manufacturing suppliers

Strategic support for securing element technology in the supply sector

Expand cooperation between companies, including joint research and development and overseas advancement

Creating a market to enhance user convenience

Establishing smart


system and


Establishing governance for smart manufacturing

Improving consistency with global standards

(technology, products, processes, and business models)

Establishing data sovereignty and securing security

Source : KIET


To this end, first, Korean smart manufacturing should be pushed forward through manufacturing innovation while utilizing our strengths and make up for the weak points of Korean manufacturing by applying intelligence information technology. We should get the smart manufacturing system power by creating best practices for industries and companies.

Korea’s diverse industrial portfolio has optimal conditions as a testbed for smart manufacturing in its transition to smart manufacturing. Additionally, the rapid pace and flexibility of adaptation to change are expected to be advantageous in finding new directions in connection with production and demand. The differentiation of smart manufacturing strategies by industry type is also expected to be effective in securing reliable assets by facilitating the accumulation and proliferation of joint industrial data.

Second, small and medium enterprises should promote product innovation, market innovation and workplace innovation linked to the global market by utilizing intelligence information technology. This means that process innovation, along with product innovation, should be based on market innovation. It should also take into account the difficulty of expanding investment if companies do not anticipate

growth in demand in the future.

Meanwhile, it is needed that a smart manufacturing strategy targeting foreign markets because the domestic market is difficult to be expected economy of scale and the domestic market’s demand is not fragmented. It is expected that the real-time collection and analysis of market information will provide new growth opportunities for the B2C-process industry and small and medium-sized enterprises.

Third, supply capacity should be secured to cope with the growing demand for smart manufacturing systems at domestic and foreign. The company should strengthen its corporate capabilities in supplying smart manufacturing systems in response to the spread of smart manufacturing systems. In this process, medium-sized businesses should be fostered and the suppliers should be more easily accessible to the market. Policy support should be differentiated in consideration of the company’s innovation capabilities in response to smart manufacturing and an ecosystem approach that encompasses solutions, equipment,

devices and services should be taken.

Finally, we should use our manufacturing know-how as much as possible to maintain our competitive advantage in the manufacturing sector, while using it to discover new solutions and develop them into new business sectors. The dominance of operational technology should be developed into a manufacturing solution.

To this end, the smart factories of small businesses under construction should have connections and extendability to large companies and other industries. In addition, smart factory components and system design technology considering the characteristics of Korea’s manufacturing industry should be provided, and in order to analyze applications and data optimized for the domestic environment and workers, systematic analysis and support policies on the technology and level of companies in the supply sector should be prepared.