Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Samsung supports SMEs with smart factory solutions
An advisory specialist for Samsung Electronics' Smart Factory program, left, explains factory automation to an employee at WIZES, a tractor cabin manufacturer, in Iksan, North Jeolla Province, in this undated handout photo. Courtesy of Samsung Electronics
By Nam Hyun-woo
Samsung Electronics has been empowering small- and medium-sized enterprises (SMEs) across Korea through its Smart Factory program, sharing its manufacturing expertise and know-how with more than 3,600 companies over the past decade.
Under the goal of narrowing the gap between large companies and SMEs and revitalizing the industrial ecosystem, Samsung Electronics has been operating the program since 2015 as part of its corporate social responsibility (CSR) initiative.
The program initially started as an effort to help SMEs in North Gyeongsang Province automate their manufacturing processes, but has since expanded into the Smart Factory 2.0 phase, broadening its scope to include market development, workforce training and technical support.
Since 2023, Samsung Electronics has also been operating Smart Factory 3.0, which also supports artificial intelligence (AI)- and data-driven manufacturing upgrades. Through the 3.0 program, the company invested 30 billion won over the past three years and is currently working with 10 municipalities across the country.
A key feature of the program is that it not only offers financial assistance but also sends experts to recipient companies for more than two months to help build smart factories tailored to on-site conditions.
Samsung Electronics currently deploys around 160 specialists with more than 20 years of manufacturing experience to support the construction of smart factories.
One of the recipient companies is BAEKJE, a rice noodle and rice cake maker based in Hongseong County, South Chungcheong Province. After adopting a smart factory solution, the company's output increased by 33 percent, helping it grow into an exporter serving more than 20 countries, according to BAEKJE.
“After adopting the smart factory solution, we automated most of our manual production processes, which led to a significant increase in productivity,” BAEKJE CEO Kim Cheol-yoo said. “Through efforts such as expanding into overseas markets, we are targeting 46 billion won in sales next year.”
WIZES, a tractor cabin manufacturer in Iksan, North Jeolla Province, also introduced a smart factory solution through the program, and increased its productivity by approximately 52 percent.
“Building on the innovation we achieved through the smart factory program, we are now pursuing ‘family innovation,’ under which our partner companies can grow alongside us,” WIZES CEO Jeong Byeong-gyu said.
“Building on the innovation we achieved through the smart factory program, we are sharing know-how with partner companies so that they can grow alongside us,” Jeong added.
According to an analysis by the Korea Federation of SMEs in September 2022, companies that adopted smart factories saw sales rise by 23.7 percent, employment by 26.0 percent and research and development investment by 36.8 percent.
Officials of Samsung Electronics and companies that participated in the former's Smart Factory program applaud during a ceremony to celebrate the program's 10th anniversary at Coex in southern Seoul, Oct. 21, 2025. Courtesy of Samsung Electronics
Entering the Smart Factory 3.0 phase, Samsung Electronics is focusing on upgrading factories into more advanced smart manufacturing facilities capable of collecting and analyzing production data in real time, allowing companies to respond to and address operational issues more promptly.
The 3.0 program supports companies through multiple stages, starting by establishing a data operating system for automated data collection and introducing manufacturing AI capable of predicting failures based on data analysis. Ultimately, the initiative aims to help companies build autonomous factories capable of making decisions based on AI.
“The past 10 years of the Smart Factory program are the result of Samsung and SMEs working side by side on the ground,” a Samsung Electronics official said. “We will continue supporting innovation through manufacturing AI.”
Samsung Electronics operates a range of CSR programs, including the Stepping Stone of Hope loan program, C-Lab startup incubation program and Smart Factory.