What Is the Digital Collaboration Factory Program
The Digital Collaboration Factory Program, a newly expanded track under Korea's 2026 Integrated Smart Manufacturing Innovation Support Notice, is currently accepting its second round of applications. Unlike the existing Large-Small Business Win-Win Smart Factory program, which pairs a single large enterprise with a single supplier in a 1:1 matching structure, the Digital Collaboration Factory Program is built around a consortium of five or more companies, including manufacturers, suppliers, and a planning organization.
In other words, the support target shifts from upgrading a single company's equipment to enabling digital integration across an entire supply chain — from raw material sourcing through production to distribution and logistics. This reflects a broader policy shift from supporting individual firms toward supporting manufacturing ecosystems as a whole.
What the Program Supports
Support under the program falls into two main categories.
Government funding typically covers 50–70% of total project costs, with the lead consortium company (the planning organization) drafting the overall project plan while individual member companies submit their own detailed sub-tasks.
Comparison with the Win-Win Smart Factory Program
| Category | Win-Win Smart Factory | Digital Collaboration Factory Program |
|---|---|---|
| Structure | 1:1 matching (large enterprise–supplier) | Consortium of 5+ companies |
| Cost sharing | Split among government, large enterprise, SME | Government funding + joint contribution by members |
| Eligibility | Centered on large-enterprise suppliers | Mixed manufacturer, supplier, planning organization |
| Focus | Individual company digitization | Consortium-wide collaborative systems + individual hardware |
While the Win-Win program centers its evaluation on "who shares how much of the cost," the Digital Collaboration Factory Program evaluates "how organically the consortium is connected." Applicants should therefore demonstrate concrete trading relationships and a clear rationale for data integration among participants in their project plan.
Application Process and Preparation
Applications are submitted online through the Smart Factory Program Management System, following a two-step structure: the lead consortium company registers the integrated project plan, and each participating company submits its own detailed application.
When forming a consortium, keep the following in mind:
When drafting the project plan, presenting concrete quantitative expected outcomes — productivity gains, lead-time reductions, inventory turnover improvements — has a major impact on the evaluation score.
How KITIM Consulting Can Help
The Korea Institute of Technology Innovation Management (KITIM) supports companies preparing to apply for the Digital Collaboration Factory Program in the following ways:
Because this program requires coordinating multiple stakeholders' interests — unlike the simpler Win-Win program — engaging expert consulting early in the planning stage can save substantial time and cost, from consortium formation through project plan completion. If you are considering an application for the Digital Collaboration Factory Program, please reach out to KITIM.