Samsung boosts drive to help small enterprises

Kim Jong-ho, left, president of Samsung Electronics’ global technology center, poses with Trade, Industry and Energy Ministry Vice Minister Lee Kwan-sup, center, and Park Jin-woo, president of Korea Smart Factory Platform after signing a partnership deal to build 600 smart factories across the nation by 2017, at the Korea Chamber of Commerce and Industry in Namdaemun, central Seoul, Monday. / Courtesy of Samsung Electronics

By Lee Min-hyung

Samsung is boosting its drive toward being a key supporter of small and medium-sized enterprises (SMEs) by sharing its advanced manufacturing technology with them.

The nation’s top conglomerate has teamed with the Ministry of Commerce, Industry and Energy to build more than 600 smart factories across the nation by 2017.

“Both sides agreed to invest a total of 30 billion won ($25.3 million) to boost bilateral efforts for the smart factory project,” a Samsung spokesman said Monday.

The move is in line with the government’s mainstream policy, named creative economy, under which 18 conglomerate-funded creative economy centers have been set up across the country this year.

Samsung has been leading two of them in Daegu and in North Gyeongsang Province.

Each party will invest 15 billion won in a special task force to deal with operations of the two-year project, which starts next year. They include financial resources management and manpower training systems.

The task force will invest the money to build the smart factories in the 18 creative centers and run the project.

“Samsung Electronics has been conducting business to expand smart factories for SMEs in North Gyeongsang Province since the beginning of the year,” Kim Jong-ho, president at the company’s global technology center, said in a statement.

The company said it will start with building an academy for the smart factory in the creative economy center in North Gyeongsang Province.

The company will then provide its manufacturing manpower to SMEs, helping them learn from Samsung’s technological experience and knowhow in manufacturing.

“We expect the project to become a new growth model between conglomerates and SMEs,” Kim said.

The trade ministry will help Samsung build infrastructure used for constructing the base for the smart factory. The ministry said it would spare no effort to maximize efficiency by collaborating with related ministries including the Science, ICT and Future Planning Ministry.

“We are pushing to build 10,000 smart factories by 2020 for the smart ecosystem of the country’s manufacturing,” said Trade, Industry and Energy Vice Minister Lee Kwan-sup.

He said the ministry planned to invite more conglomerates to help sustain the project.

Since President Park Geun-hye took office in February 2013, the government has pushed forward with the creative economy policy to shift its conglomerates-centered business ecosystem to support small and medium-sized enterprises in a strong bid to revitalize the sluggish economy.