Korean SMEs Explore AI Transformation Strategies at Recent Forum

The Korea Federation of Small and Medium Enterprises (KFSME), led by Chairman Kim Ki-moon, announced on the 18th that it held the forum "New Growth Drivers for SMEs: AI Transformation (AX) Policy Forum" at its headquarters in Yeouido. This gathering focused on capturing the voices of SMEs amidst the ongoing AI transformation and discusses strategic support measures to effectively disseminate AX across various sectors.

In his opening remarks, Executive Vice Chairman Oh Gi-woong emphasized the urgency of creating actionable plans as many SMEs currently feel isolated from the AX wave. He urged that the initiative must evolve beyond mere rhetoric to ensure meaningful adoption across all small businesses.

In line with this, he stated that specialized AX models tailored to various industries are crucial. Oh suggested that cooperatives formed by these industries could play a pivotal role as hubs for AX integration, thereby enhancing the scalability of AI solutions across SMEs.

Kim Joo-mi, Senior Research Fellow at the Small and Medium Venture Business Research Institute, presented a detailed analysis on “Tailored AX Policy Directions for Small Manufacturing Enterprises.” She highlighted the necessity to shift from a 'supplier-centered' approach to one that is 'industry ecosystem-centered' in crafting policies that can better meet the diverse needs of these enterprises.

During a session focused on maximizing AX expansion at the SME level, Lee Young-hwan, Director of the Digital Innovation Research Center at Korea University, analyzed case studies of successful AX implementations. He proposed leveraging intermediate organizations in various sectors to bolster support for SMEs in their AX journeys.

A comprehensive discussion followed, moderated by Jin Byeong-chae, Professor at KAIST, with experts from public and private sectors exploring tailored support strategies for AX expansion in SMEs. Professor Han Yong-hee from Soongsil University pointed out that lightweight automation, such as 'vibe coding', may be a suitable solution for SMEs with multifaceted roles. He advocated for educational support in coding literacy over traditional large-scale hardware implementations.

Yang Chan-hui, Director of the KFSME’s Innovation Growth Headquarters, emphasized that effective AX dissemination requires an industry-specific approach that acknowledges shared production processes and pain points. Utilizing organized industry networks within cooperatives can enable the joint development and empirical testing of specialized AI models.

Jang Gi-cheol, Director of Artificial Intelligence Data Promotion at the Ministry of Science and ICT, and Kwak Jae-kyung, Head of the AI Dissemination Promotion Division at the Ministry of Small and Medium Enterprises and Startups, provided updates on prior AX support policies, expressing commitment to embedding marketplace insights into initiatives that can significantly enhance AX penetration across SMEs.