A smart sewing factory based on 5G network and ICT solutions in Iksan, 220 kilometers south of Seoul, is shown in this photo provided by North Jeolla Province on Dec. 22, 2020.
SEOUL, March 30 (Korea Bizwire) — The management performance of the small and mid-sized enterprises (SMEs) that introduced a smart factory in collaboration with large companies is stronger than other SMEs, a local business lobby group said.
The Korea Federation of Small and Medium Businesses analyzed the performance results of the ‘win-win smart factory project.’
The analysis showed that the operating profit growth rate of the SMEs operating smart factories was 37.6 percentage points higher than that of other SMEs.
In addition, the revenue, added value and payroll growth of the smart factory SMEs were 11.4 percentage points, 23.4 percentage points and 3.2 percentage points higher than those of other SMEs.
These results are based on a comparison between 824 SMEs that participated in smart factory projects in 2018 and 2019 and 2,553 SMEs that have similar business types and revenues but did not introduce smart factories.
Smart factory businesses saw their operating profits rise by 26.1 percent on average compared to the pre-introduction level. In contrast, businesses operating conventional factories suffered a 11.5 percent decline in operating profits.
Smart factory SMEs enjoyed a 13.7 percent growth in revenue, but the revenue growth of other SMEs remained low at 2.3 percent.
Under the win-win smart factory project, the Ministry of SMEs and Startups collaborates with large companies to support a private sector-led establishment of smart factories.
J. S. Shin (js_shin@koreabizwire.com)
