What the Two Ministries Announced on September 7
On September 7, Korea's Ministry of Science and ICT (MSIT) and Ministry of SMEs and Startups (MSS) announced that they will jointly support the adoption and spread of physical AI on small and mid-sized manufacturing floors. Physical AI refers to AI that directly senses, decides, and controls things that move — robots, transport equipment, and machines.
The flagship item is linking MSIT's "AI Factory Manager for All" with MSS's Smart Manufacturing Innovation program. The ministry that has led technology development and demonstration and the ministry that has led deployment to SMEs are being connected into a single path.
The announcement sets a direction, not a program notice. Budget, per-company support limits, the company's own cost share, and the timing of the call for applications remain to be confirmed in follow-up notices.
What Is the "AI Factory Manager for All"?
The service builds on full-stack physical AI technology secured through two regional demonstrations.
What it plans to offer is design, analysis, procurement, and training consulting for automating logistics and production end to end, together with a factory operating system. Put simply, it answers the question "how many robots, placed where, moving how?" so that a small plant does not have to work it out alone.
How It Pairs with the MSS Smart Factory Program
Three linkages can be confirmed from the announcement.
Whether the dedicated program becomes a separate track within the existing smart factory program or works through bonus points and referrals has not yet been disclosed.
Gauging Whether Your Plant Could Qualify
Selection criteria have not been published, but the nature of the service suggests how to assess fit in advance.
What You Can Prepare Now
Some materials take too long to assemble once a notice is out. We recommend getting these four in order now.
Organize Process Documentation
Bring process flow charts, layout drawings, and material flow data by item and by segment up to date. Even one to two weeks of measured transport counts, distances, and waiting times gives the design a starting point.
Prioritize and Quantify Expected Benefits
Choose the processes to automate and write down current and target values for labor hours, lead time, and defect rate. They should be measurable — for example, "transport labor from 6 hours a day to 2."
Check Equipment and Safety Status
Survey each machine's controller type, communication method, and data connectivity. Confirm robot safety inspection and collaborative-robot workplace safety requirements early so they do not delay the schedule.
Plan the Funding
Plan for the company's cost share and for maintenance and expansion investment after the build.
Being Realistic About Promise and Limits
Where to Watch for Follow-Up Notices, and How KITIM Helps
The channels to watch are MSS and MSIT press releases, the smart factory project management system, and Manufacturing AI 24. The timing may also overlap with the 2027 Smart Manufacturing Innovation program notice, so having basic documents — business registration, financial statements, factory registration — and the process materials above ready lets you respond to either call.
KITIM supports SME manufacturers preparing for smart factory and physical AI adoption through process diagnosis, program fit review, and advisory on business plans and ROI design. If you would like to know whether your plant could qualify and where to begin, please request a KITIM consultation.