What the Audit Revealed — The System Is Built, but No One Can Fix It
A lawmaker's survey released during Korea's 2026 National Assembly audit (September 19–23, 105 SME manufacturers) puts numbers on what happens after a smart factory goes live.
A government-run "manual library" that would store maintenance materials has been proposed, but it remains a proposal, not an established program. This exposes a contradiction: grant recipients must keep their systems running throughout the five-year follow-up period, yet when the supplier disappears, so do the means to meet that obligation.
What Actually Stops When a Supplier Disappears
Safeguard 1 — Escrow Your Source Code and Technical Materials
With escrow, the source code is deposited with a third party and released to you if agreed conditions occur. The main options in Korea are the technology escrow service of the Foundation for Cooperation between Large and Small Enterprises and the software escrow service of the Korea Copyright Commission. Escrow only works if the contract spells out the release triggers (bankruptcy, closure, discontinued maintenance and so on).
At the regional level, Gyeongsangnam-do launched a "Smart Factory Solution Bank" with the Korea Copyright Commission in 2019. It stores source programs for a set period, makes them available for maintenance if a supplier closes or changes business, and included support for escrow fees. Check current terms with the provincial government.
Safeguard 2 — Seven Clauses Your Contract Needs
Safeguard 3 — Internal Capability and Fallback Paths
What to Do Before the 2027 Integrated Notice
If you already have a system, confirm your supplier's business status, check that you hold the deliverables and that accounts are in your name, and pursue an escrow agreement now. If you plan to apply, build maintenance, escrow and data-export terms into quotations and agreements when you select a supplier, ahead of the integrated notice expected around November.
KITIM reviews supplier contracts, assesses readiness for follow-up inspections and supports smart factory grant applications. Make sure the system you build today is still running five years from now, starting with the contract. Contact KITIM through our inquiry page to arrange a consultation.