KoreaTechDesk | Korean Startup and Technology News

Wed, October 22, 2025

Sign in

Virtual Demo Day
Menu
  • Home
  • Startup News
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • FinTech
    • Gadgets & Electronics
    • Health & Bio
    • Manufacturing
    • Press Release
    • IoT
    • Marketplaces & E-commerce
    • Robotics
    • Transportation
    • Investments
    • Ecosystem & Lists
  • Governments
    • Artificial Intelligence Industry Cluster Agency
    • Daegu Technopark
    • GANGNAM-GU
    • Gyeonggido Business & Science Accelerator
    • Hwaseong Industry Promotion Agency
    • Invest Seoul
    • Korea Creative Content Agency
    • Korea Internet & Security Agency
    • Korea Information Security Industry Association
    • Korea Institute of Startup & Entrepreneurship Development
    • Korea Tourism Organization
    • Korea Trade-Investment Promotion Agency
    • Ministry of Culture, Sports and Tourism
    • Ministry of SMEs & Startups
    • National IT Industry Promotion Agency
    • Pangyo Techno Valley
    • Seoul Business Agency
    • Seoul FinTech Lab
    • South Gyeongsang Province
    • Seoul Metropolitan Government
  • Events
    • COMEUP
    • Korea Fintech Week
    • K-Content Expo
    • NextRise
    • Try Everything
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
  • Programs
    • Asan Voyager
    • CAPA Global Program
    • Campus Town Program
    • SGSC Global Bootcamp
    • Gangnam-gu Global Roadshow
    • Global SaaS Marketplace Support Project
    • LAUNCHPAD
    • COMEUP STARS 120
    • K-Startup Grand Challenge
    • TIPS X beSUCCESS Global Project
    • SFL Global Program
    • KTO Global Showcase
    • Yonsei Univ Global Class
    • KOSME Global Program
  • Partner With Us
    • Press Release
    • Startup Scouting
    • Business Agencies
    • Global Mentorship Program
    • Investment Opportunities
    • K-Scouter Program
  • Lists
  • Virtual Demo Day
  • Home
  • Startup News
    • AI & Big Data
    • AR & VR
    • Blockchain
    • Clean Technology
    • Content & Games
    • Cybersecurity
    • Enterprise & SaaS
    • FinTech
    • Gadgets & Electronics
    • Health & Bio
    • Manufacturing
    • Press Release
    • IoT
    • Marketplaces & E-commerce
    • Robotics
    • Transportation
    • Investments
    • Ecosystem & Lists
  • Governments
    • Artificial Intelligence Industry Cluster Agency
    • Daegu Technopark
    • GANGNAM-GU
    • Gyeonggido Business & Science Accelerator
    • Hwaseong Industry Promotion Agency
    • Invest Seoul
    • Korea Creative Content Agency
    • Korea Internet & Security Agency
    • Korea Information Security Industry Association
    • Korea Institute of Startup & Entrepreneurship Development
    • Korea Tourism Organization
    • Korea Trade-Investment Promotion Agency
    • Ministry of Culture, Sports and Tourism
    • Ministry of SMEs & Startups
    • National IT Industry Promotion Agency
    • Pangyo Techno Valley
    • Seoul Business Agency
    • Seoul FinTech Lab
    • South Gyeongsang Province
    • Seoul Metropolitan Government
  • Events
    • COMEUP
    • Korea Fintech Week
    • K-Content Expo
    • NextRise
    • Try Everything
  • Interviews
    • Investors’ interviews
    • Founders’ interviews
  • Programs
    • Asan Voyager
    • CAPA Global Program
    • Campus Town Program
    • SGSC Global Bootcamp
    • Gangnam-gu Global Roadshow
    • Global SaaS Marketplace Support Project
    • LAUNCHPAD
    • COMEUP STARS 120
    • K-Startup Grand Challenge
    • TIPS X beSUCCESS Global Project
    • SFL Global Program
    • KTO Global Showcase
    • Yonsei Univ Global Class
    • KOSME Global Program
  • Partner With Us
    • Press Release
    • Startup Scouting
    • Business Agencies
    • Global Mentorship Program
    • Investment Opportunities
    • K-Scouter Program
  • Lists
  • Virtual Demo Day
Home Programs

Aerospace, Biohealth, Manufacturing: Korea AI Transformation Policy Targets Regional Industries with $5M in Funding

by Richard Park
October 2, 2025
in Programs
0

Korea is accelerating its push to proceed with AI transformation strategies across traditional industries, channeling $5 million into regional hubs that span aerospace, manufacturing, and biohealth. By empowering SMEs outside Seoul to lead transformation, the government is signaling a wider shift: innovation policy is no longer just about funding startups but about creating distributed AI ecosystems that reshape competitiveness across Asia-Pacific markets.

Korea Selects Five Regions for AI-Led Industrial Transformation

On October 1, the Ministry of SMEs and Startups (MSS) confirmed the selection of Gyeongsangnam-do, Daegu, Ulsan, Jeollanam-do, and Jeju as participants in the 2025 Regional-Led AI Transformation Program. The initiative will channel approximately KRW 7 billion (USD 5 million) in national funding over two years to accelerate small and medium enterprise (SME) adoption of AI solutions across key industries.

The government will cover up to 60% of project costs, with local governments as well as participating SMEs required to contribute the remaining 40% or more. A similar budget is planned for 2026, signaling long-term commitment.

Localized AI Transformation Strategies Designed Around Industrial Strengths

Each region will implement customized AI adoption programs aligned with its industrial profile:

  • Gyeongnam will focus on aerospace, defense, and machinery, distributing AI solutions among 3–5 partner firms while establishing GPU and edge-computing infrastructure.
  • Daegu will implement eight leading AI model projects in automotive parts manufacturing and build an AI Innovation Center in the Dongdaegu Venture Valley to serve youth-led startups and SMEs.
  • Ulsan will support SMEs in auto-parts, shipbuilding equipment, and fine chemicals with ready-to-use AI tools, anchored by a “Manufacturing AI Innovation Hub.”
  • Jeonnam will conduct deep AI readiness assessments in chemicals, steel, ceramics, pharmaceuticals, and renewable energy, followed by tailored solution deployment and workforce training.
  • Jeju will advance its biohealth cluster through the AI+B initiative, linking biotech and AI via LLM-driven bio-big-data solutions, alongside establishing shared AI infrastructure such as public GPU farms and testbeds.

The Ministry Pledges Tangible Gains in Productivity and Revenue

MSS Minister Han Seong-sook emphasized the government’s goal of delivering measurable outcomes for SMEs:

“We will continue to support more regional SMEs in adopting and using AI technologies so that improvements in quality, productivity, and revenue growth can be realized,” Han stated.

She also highlighted the importance of close collaboration with local governments to accelerate program execution and maximize results.

Korea AI Transformation Build Global-Ready SME Competitiveness

This program is a clear signal of Korea’s shift toward decentralized AI adoption. By embedding AI capabilities in regions beyond Seoul, the government is creating new entry points for SMEs in traditional sectors such as aerospace, heavy machinery, and biohealth.

At the same time, Korea AI transformation will tangibly show global investors and policymakers how the country is building regional AI hubs to reduce concentration risks and spread digital transformation benefits nationwide.

Korea AI transformation strategy also resembles broader global trends where governments tie AI investment to industrial clusters, ensuring that innovation translates into competitiveness in manufacturing, healthcare, and defense supply chains.

By combining national subsidies with SME co-investment, the program also strengthens the capability infrastructure—training pipelines, GPU farms, and MLOps platforms—that startups need to scale internationally.

Regional AI Policy as a Blueprint for Cross-Border Growth

Korea’s Regional AI Transformation Program positions the country as an early mover in embedding AI adoption at the SME and cluster level. Startups gain new opportunities to pilot solutions within government-backed testbeds, while investors gain visibility into regional innovation centers in Daegu and Jeju that are likely to produce scalable models.

As Korea aligns its industrial policy with AI, the broader implication is clear: the country is laying the foundation for globally competitive SMEs in aerospace, manufacturing, and biohealth, sectors critical to the Asia-Pacific and beyond.

– Stay Ahead in Korea’s Startup Scene –
Get real-time insights, funding updates, and policy shifts shaping Korea’s innovation ecosystem.
➡️ Follow KoreaTechDesk on LinkedIn, X (Twitter), Threads, Bluesky, Telegram, Facebook, and WhatsApp Channel.

Tags: AIAI adoptionAI Innovation CenterAI policyAI programArtificial IntelligenceBioHealthInnovationKorea AI TransformationManufacturingMinistry of SMEs and Startups (MSS)policypolicy reformRegional AIRegional AI Hubsregional developmentSMEs and Startupsstartup hubs
Previous Post

SME Tech Protection Enters a New Era: Korea’s Government – Police Collaboration Aims at Deterrence and Relief

Next Post

Korea’s SME Tech Protection on Trial: Doowon and Hyundai Kefico Case Shows Why Stronger Enforcement Matters

Next Post

Korea’s SME Tech Protection on Trial: Doowon and Hyundai Kefico Case Shows Why Stronger Enforcement Matters

MOST READ ARTICLE OF THE WEEK

1.
Korea Bets on Vertical AI: Rebellions and Lunit Collaborate to Expand Medical AI Ecosystem Globally
16 Oct 2025
2.
Korea’s Crypto Accountability Gap Widens as Dunamu, Bithumb Skip Third National Audit
16 Oct 2025
3.
Global ASTI 2025: Korea’s National R&D Network Charts New Path for AI Collaboration and Export Growth
17 Oct 2025
4.
Korea Builds Financial Backbone for Next-Gen K-Content Through KIBO – KB Kookmin Bank Partnership
17 Oct 2025
5.
How Korean SMEs Are Safeguarding Overseas Operations Amid Cambodia Travel Bans
17 Oct 2025
Register for Event

[the_ad id=”18508″]

List Article

1.
6 Reasons Why Seoul Is Poised to Become a Top 5 Global Economic Hub by 2030
20 Aug 2024
2.
Top Co-working Spaces for Startups & Companies to Explore in South Korea
3 Apr 2024
3.
Top Accelerators in South Korea Shaping Startup Success
29 Nov 2023
4.
Top Korean Venture Capital Firms Backing Startup Success
26 Oct 2023
5.
Top Apps for Seamless Korean to English Translation
14 Aug 2023

Similar Articles

Programs

Korea Builds Financial Backbone for Next-Gen K-Content Through KIBO – KB Kookmin Bank Partnership

More
Programs

Korea Expands Smart City Innovation Through Public – Startup Collaboration in Cheonan

More
Programs

Tech Service K-Innovation Delegation: 16 Startups Head to Canada for AI and Deep Tech Expansion

More

Topics

Menu
  • AI & Big Data
  • AR & VR
  • Blockchain
  • Clean Technology
  • Content & Games
  • Cybersecurity
  • Enterprise & SaaS
  • FinTech
  • Gadgets & Electronics
  • Health & Bio
  • IoT

Program

Menu
  • Asan Voyager
  • CAPA Global Program
  • SGSC Global Bootcamp
  • LAUNCHPAD
  • COMEUP STARS 120
  • K-Startup Grand Challenge
  • TIPS X beSUCCESS Global Project
  • SFL Global Program
  • KTO Global Showcase
  • Yonsei Univ Global Class
  • KOSME Global Program

About

Menu
  • About Us
  • all articles
  • Terms of Use
  • Privacy
  • Cookie-policy
  • twitter

Subscribe and be informed first hand about actual Korean startup news.

All the day’s headlines and highlights, direct to you every morning.

Contact us : [email protected]

Topics

Menu
  • AI & Big Data
  • AR & VR
  • Blockchain
  • Clean Technology
  • Content & Games
  • Cybersecurity
  • Enterprise & SaaS
  • FinTech
  • Gadgets & Electronics
  • Health & Bio
  • IoT

Program

Menu
  • Asan Voyager
  • CAPA Global Program
  • SGSC Global Bootcamp
  • LAUNCHPAD
  • COMEUP STARS 120
  • K-Startup Grand Challenge
  • TIPS X beSUCCESS Global Project
  • SFL Global Program
  • KTO Global Showcase
  • Yonsei Univ Global Class
  • KOSME Global Program

About

Menu
  • About Us
  • all articles
  • Terms of Use
  • Privacy
  • Cookie-policy
  • twitter

Subscribe and be informed first hand about actual Korean startup news.

All the day’s headlines and highlights, direct to you every morning.

© 2023 Koreantech News & Media Korea Zrt. All rights reserved.

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

Our Spring Sale Has Started

You can see how this popup was set up in our step-by-step guide: https://wppopupmaker.com/guides/auto-opening-announcement-popups/

We hope you enjoy our content, May you please give us Feedback regarding our website!

Single Post Feedback

dgdfgfdgdf

What you think about Koreatechdesk, Share your idea with us!

feedback popup

Invitation submission has been closed

Insert/edit link

Enter the destination URL

Or link to existing content

    No search term specified. Showing recent items. Search or use up and down arrow keys to select an item.