South Korea Sets 53 Billion Won AI Factory Push, Targets 500 by 2030

South Korea sees artificial intelligence as a way to strengthen a manufacturing sector challenged by a shrinking workforce, slowing potential growth and intensifying global supply-chain competition. The government-led Manufacturing AI Transformation, or M.AX, Alliance brings together large and small manufacturers, AI companies and research institutions. Its factory program is designed to use industrial data and sector-specific models to raise productivity, reduce defect rates and shorten production lead times.

The Ministry of Trade, Industry and Resources said on April 29, 2026, that it would provide 52.75 billion won, rounded to 53 billion won, for 32 new AI factory projects. Applications run from April 30 through May 30. The projects cover supply-chain data sharing, customized AI models, commercialization of AI solutions and proof-of-concept work for full-stack factories. The M.AX initiative aims to establish 500 AI factories nationwide by 2030.