SEOUL, Aug. 6 (Korea Bizwire) — Companies that share similar production processes will be able to finance high-quality “smart” factories cost-effectively by coming together in clusters of five or more.
The Ministry of SMEs and Startups revealed yesterday that it would be partially funding the establishment of factories that would benefit companies through economies of scale.
Companies will be eligible for government aid if five or more entities producing products that require similar production processes come together to create a single “smart” factory system.
In doing so, companies will be able to establish high-quality production facilities at a low price.
In addition, the business that would be offering the production solution will also benefit financially by selling the same production system to multiple companies.
The government funding will be available starting this year on a trial basis, in which approximately 3 billion won will be distributed to applicants.
Companies benefiting from government aid will receive 50 percent of the costs required to pay for a “smart” factory system, up to a 40 million won maximum per company.
Companies, after forming a cluster of at least five entities, can apply for the funds by downloading a form, filling out the relevant details available on smart-factory.kr and applying via email to firstname.lastname@example.org.
If companies are unable to designate a factory system provider of their choice, they can check on smart-factory.kr to obtain information on a pool of resources.
The ministry plans give funding priority to companies that are struggling due to government regulations or policy changes.
An information session on the assistance will be offered to companies on August 14 at the Korea Chamber of Commerce and Industry’s head office in Seoul.
Kevin Lee (email@example.com)