The government and private sector will invest a combined 3.7 trillion won (US$2.6 billion) in 26 projects within the manufacturing industry to apply artificial intelligence (AI) technologies aimed at improving productivity, the industry ministry said Monday.

Nine of the projects will be allocated to conglomerates, with small and medium-sized enterprises taking up the rest, according to the Ministry of Trade, Industry and Energy.

“We aim to revitalize South Korea’s manufacturing industry by applying AI-based automated solutions across all sectors,” Industry Minister Ahn Duk-geun said in a statement.

Of the total investment, the government will contribute 190 billion won over the next four years.

The projects include a plan by South Korea’s top automaker, Hyundai Motor Co., to establish a flexible production system capable of manufacturing different models on a single line through AI-driven process optimization.

POSCO, the leading steelmaker, will also implement AI technologies to automate production proce
sses with high safety risks, enhancing worker safety.

The ministry said the projects are expected to boost productivity of companies by 30 percent and reduce production costs by 20 percent.

The initiative will also help them cut carbon emissions by reducing energy consumption by 10 percent, it added.

Source: Yonhap News Agency