S. Korea to Invest 3.7 Trillion Won in AI-Driven Manufacturing Projects

SEOUL: South Korea is set to invest a combined 3.7 trillion won, equivalent to approximately $2.6 billion, into 26 projects aimed at integrating artificial intelligence (AI) technologies within its manufacturing sector. The initiative, a joint effort between the government and private sector, seeks to enhance productivity across the industry, according to the Ministry of Trade, Industry and Energy. According to Yonhap News Agency, nine of these projects will be spearheaded by conglomerates, while the remainder will involve small and medium-sized enterprises. Industry Minister Ahn Duk-geun emphasized the government's goal to rejuvenate the manufacturing industry by deploying AI-based automated solutions across various sectors. The government plans to allocate 190 billion won over the next four years to support these initiatives. The projects include a significant undertaking by Hyundai Motor Co., South Korea's leading automaker, to create a flexible production system. This system aims to utilize AI-driven pr ocess optimization to manufacture different models on a single production line. POSCO, the country's primary steelmaker, plans to implement AI technologies to automate processes with high safety risks, thereby improving worker safety. The ministry projects that these AI-driven initiatives will enhance company productivity by 30 percent and reduce production costs by 20 percent. Additionally, the integration of AI is expected to aid in decreasing carbon emissions by lowering energy consumption by 10 percent.