South Korea’s SME manufacturers lag in AI adoption as factory data becomes critical

  • Manufacturing conglomerates adopted physical AI, while SME adoption remains near 1%.
  • 47% of conglomerates with at least 500 employees have adopted physical AI.
  • SMEs were urged to collect factory data and launch joint AI projects within 12 months.

Nearly half of South Korean manufacturing conglomerates with 500 or more employees have adopted physical AI, compared with about 1% of small and medium-sized manufacturers, according to figures presented at a Seoul seminar. Experts said smaller firms must secure factory-floor data within roughly three years to compete in the AI transformation. The Korea Federation of SMEs and the Ministry of Economy and Finance convened about 200 officials, business representatives and academics to discuss AI agent commerce and AI and robotics. Speakers urged companies to capture discarded operational data, begin with one problematic production process and standardize information for joint projects. Proposed support included GPU infrastructure, manufacturing foundation models, regionally tailored AI programs, cooperative regulatory sandboxes, AI factories and participation by SMEs in a won-based stablecoin and the data-driven K-Ontology project.

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