Skip to content
Back to Blog
Smart Factory
2026-10-197 min read1

AI Data Built With Government Money Must Go to 'AI Hub' — The AI Basic Act Amendment Approved by Cabinet on October 13 Mandates Sharing of Training Data; How SMEs in Manufacturing-AI Smart Factory Projects Can Use the Trade-Secret Exception and Settle Data Rights

The AI Basic Act amendment approved by Cabinet on October 13 would require AI training data built through government projects to be shared on AI Hub, with exceptions for trade secrets and similar cases. This guide covers the confidentiality measures and contract checks SMEs in manufacturing-AI smart factory projects should prepare now.

KITIM Consulting Team

What Is Changing — The AI Basic Act and Data Industry Act Amendments Approved by Cabinet on October 13

Korea is moving to require that AI training data built with government money be shared on a public platform. According to the Ministry of Science and ICT, the amendments approved by the Cabinet on October 13 come down to the following:

  • AI Basic Act amendment: AI training data built or produced while carrying out government projects must be linked to and shared on AI Hub, and relevant agencies get new duties to support and quality-control that data.
  • Exceptions: Data may be withheld for certain reasons, such as protecting trade secrets or concerns about infringing personal data or copyright.
  • Data Industry Act amendment: Information on where public and private data sets are held will be connected through a single window, and public institutions must, in principle, cooperate with linkage requests.
  • Note that this is only the government bill clearing the Cabinet. It still has to go through the National Assembly. Press reports put the effective date at six months after promulgation, but the text and supplementary provisions are not final and could change during legislative review.

    Why Smart Factory Companies Should Care

    Government support programs are shifting from funding equipment to funding *data*:

  • Manufacturing-AI smart factories: up to KRW 200 million for AI factory builds, and up to KRW 50 million for the data collection and validation track
  • Tacit-knowledge manufacturing AI projects: turning skilled workers' know-how into data and AI models
  • Manufacturing data productization support: up to KRW 50 million, covering no more than 80% of project costs
  • The catch is that factory data *is* process know-how. Injection temperatures and pressures, defect images, and vibration or current readings from equipment can tell a competitor exactly how you raised your yield. Deciding what counts as "training data produced through a government project" is likely to become the biggest practical issue.

    The scope of covered projects and the procedure for deciding exceptions will be set later in enforcement decrees and ministerial notices, and none of that is final yet. Still, waiting is risky, because the evidence you need to claim an exception is hard to put together after the fact.

    Preparing to Use the Exception — Meeting Trade-Secret Requirements

    Confidentiality management is the key

    Under Korea's Unfair Competition Prevention Act, information is protected as a trade secret only if it is not publicly known, has independent economic value, and is managed as a secret. If your data sits in shared folders without access controls, confidentiality pledges, or labeling, it will be hard to argue later that it can't be shared because it is a trade secret.

    Build a data catalog

  • Split your data into three layers: raw data, processed and labeled data, and trained models.
  • Give each layer a sensitivity grade (for example, shareable, internal, or core confidential) and name an owner for it.
  • Equipment utilization statistics might be shareable, for instance, while a process-condition table tied to defect root causes would be core confidential.
  • Track personal data separately

    For data that includes personal information, such as worker video or biometric signals from wearables, keep a separate record of whether it was de-identified and which exception applies to it apart from trade secrets.

    Revisit Your Contracts With Suppliers and Lead Agencies

  • Check ownership clauses: See whether your contracts cover who owns the data and AI models collected by the smart factory supplier, plus secondary use and disclosure to third parties. If those clauses are missing, it may be hard to stop your data from being used to train models for the supplier's other customers.
  • Use a reference standard: The Ministry of Trade's *Industrial Data Contract Guidelines*, which include model contracts and industry-specific cases, are a good place to start negotiations.
  • Separate data at the planning stage: List shareable and non-shareable data separately in your agreement and business plan, then adjust once the procedures in the enforcement decrees are set.
  • Align with related legislation: The renamed *Act on Promoting Industrial Digital Transformation and AI Utilization*, in force since July 1, 2026, makes the legal basis for industrial AI clearer. It makes sense to update your internal data governance alongside it.
  • Disclosure Is Not Just a Loss — Treating Data as an Asset

    Sharing non-sensitive data on AI Hub can get you quality-control support and a place in a shared training-data ecosystem. With manufacturing data productization support, you can also decide which data to sell and which to protect.

    Checklist for now

  • List the data you produced through government projects
  • Grade it by layer (raw, processed, model)
  • Put confidentiality measures in place: access rights, pledges, and labeling
  • Review contract clauses with suppliers and lead agencies
  • Follow the National Assembly review and draft enforcement decrees
  • How KITIM Can Help

    KITIM helps companies write the data management plans required in manufacturing-AI smart factory proposals, identify what to check in supplier contracts, and design projects that both protect and use their data. If you want to join government programs without giving away your process know-how, contact KITIM for a consultation. We will build a response strategy that fits your company's data.

    AI Basic Act AmendmentAI HubAI Training DataManufacturing AI Smart FactoryManufacturing DataTrade SecretsIndustrial Data Contract Guidelines
    매일 자동 업데이트

    이 분야 정부지원사업, AI가 찾아드립니다

    3분 기업진단만 완료하면 귀사에 맞는 공고를 적합도 점수와 함께 추천합니다. 무료입니다.

    AI 맞춤 공고 무료로 받기

    Need Consulting?

    Our technology innovation consultants will propose the optimal solution for your company.