2026 Integrated Announcement: Root Industry Track Overview
The most notable change in the 2026 government smart factory integrated announcement is the introduction of a dedicated track for root industries. Small and medium-sized enterprises in the six root technology fields—casting, mold, plastic working, heat treatment, surface treatment, and welding—will receive support through a combined structure of AI Application Product Rapid Commercialization and Process Innovation Smart Factory programs.
Funding Scale: Up to 75% government subsidy, maximum KRW 300 million for the Autonomous Factory AI Track (total project budget around KRW 400 million)Scope: AI solution deployment + process data infrastructure + digital twin constructionBackground: Amendment of the Special Act on Strengthening Root Industry Competitiveness, alignment with manufacturing AI diffusion policyDifferentiation: AI application weight of 30+ points compared to general smart factory programs, with industry-specialist evaluatorsFour Major Process Challenges Facing Root Industry SMEs
More than 70% of root industry SMEs operate equipment over 30 years old and face four structural challenges.
Aging Equipment and Manual Dependency: Process data digitization rate below 20%, quality management reliant on operator experienceHigh Quality Variation: Defect rate variance of 5–15% in identical processes, rising customer claim costsEnergy-Intensive Operations: Heat treatment and casting consume 8–12% of revenue in electricity, intensifying carbon-neutral pressureAging Skilled Workforce: Core personnel average over 55 years old, with 30% expected to retire within 5 yearsFor AI/IoT prioritization, focus on: (1) areas with high process variability, (2) equipment with high energy cost share, and (3) inspection and judgment tasks heavily dependent on skilled workers.
AI Application Scenarios by Process
Casting
Molten Metal Temperature and Solidification Prediction: Thermocouple data + machine learning achieving 92% solidification time prediction accuracyVision-Based Defect Inspection: Deep learning classification of X-ray and CT images, reducing inspection time by 70%Mold
Predictive Maintenance for Wear: Vibration and acoustic sensors + LSTM models extending mold life prediction, reducing sudden failures by 60%Injection Parameter Optimization: Reinforcement learning–based pressure and temperature tuning, improving yield by 3–5%pHeat Treatment
AI-Controlled Furnace Temperature Profile: Auto-generated optimal heating and cooling curves per steel grade, reducing energy consumption by 12–18%Hardness Prediction Model: Final hardness prediction from chemical composition and process conditions, cutting post-inspection costsSurface Treatment
Vision-Based Plating Thickness Measurement: Optical measurement + AI for real-time thickness monitoring, reducing rework by 50%Wastewater Load Prediction: Forecasting wastewater generation from process inputs to proactively meet environmental regulationsFive Steps to Writing the Business Plan
Current State Diagnosis: Process flowcharts + data collection status + quantified defect rates and energy usage (3+ years of data)KPI Setting: Defect reduction rate, energy savings, productivity improvement, OEE target valuesAI/Equipment Specification: Solution supplier selection + algorithm type (supervised/reinforcement learning) + data infrastructureROI Calculation: 5-year cumulative savings vs. investment, with payback typically achievable within 24–36 monthsOperational Sustainability: Post-project data governance, workforce training, and AI model retraining plansApplication Schedule and KITIM Consulting
Recruitment Schedule: 1st announcement in February–March 2026, 2nd announcement in May–June 2026 (expected)Evaluation Weights: Project Adequacy 30 pts, AI Applicability 30 pts, Expected Outcomes 20 pts, Execution Capability 20 ptsPre-Diagnosis Checklist: Data collection feasibility, AI solution fit, internal project team, post-project operations planContact KITIM Consulting
The Root Industry AI Track involves stricter technical fit assessments and demands far more concrete AI application scenarios than standard smart factory programs. KITIM has process experts across all six root technology fields and a network of AI solution partners, providing end-to-end one-stop consulting—from pre-diagnosis and business plan writing to evaluation presentation preparation and project execution management. Request your free pre-diagnosis for the 2026 integrated announcement by contacting KITIM today.
