Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) held the first Manufacturing AI Transformation (M.AX) Conference and Industrial Growth Forum on May 20, 2026, bringing together experts in manufacturing and economics to discuss how to advance M.AX and scale up the outcomes. Participants included companies involved in M.AX, such as LG Production Engineering Research Institute (LG PRI) and INTERX, as well as academic experts from KAIST, UNIST, Sungkyunkwan University and Myongji University.

Manufacturing has long anchored Korea’s economic growth. But the sector now faces tougher conditions, including a shrinking working-age population and a declining potential growth rate. As AI moves into manufacturing sites and emerges as a game changer for productivity and industrial competitiveness, advancing the M.AX has become essential.

As major competitors transform manufacturing with AI through large-scale private investment and strong government-led policies, the Korean government launched the M.AX Alliance to bring together capabilities across manufacturers, AI companies, academia and research institutions. Today, more than 1,500 companies and organizations across 11 divisions are working together on the use of manufacturing data, AX in production processes and the development of AI-embodied innovative products. Key projects include AI factories, on-site demonstrations of industrial robots and humanoids in manufacturing, and on-device AI semiconductors essential for AX products such as autonomous vehicles. In 2026, MOTIR will invest KRW 1.1 trillion in its AX budget to support wider adoption.

Since its launch, the Alliance has produced initial results, including productivity gains among AI factory participants through lower defect rates, more efficient predictive equipment maintenance, liquidity support for companies facing financing constraints through closer links with the National Growth Fund, and the creation of a M.AX sub-fund under the Industry Growth Fund. In February 2026, MOTIR added an industrial complex AX division, establishing a foundation for AX at regional manufacturing sites and completing the M.AX Alliance’s “Best Eleven” structure.
At the forum, speakers examined how M.AX can strengthen industrial competitiveness, reviewed strategies in different countries, and discussed technical priorities for applying M.AX at manufacturing sites. Participants also discussed upgrades to AI factory technologies, the need to secure technological sovereignty in manufacturing AI, Korea’s strengths in full-stack capabilities, and the importance of strengthening AI skills among the manufacturing workforce.

“M.AX, the AI transformation of manufacturing, will be a critical factor in maintaining Korea’s industrial leadership and securing the country’s future competitiveness amid the global race for technological supremacy,” said Kim Sung-youl, Deputy Minister for Industry and Growth at MOTIR. “The government will focus on bringing AI into production processes and developing new AI-embodied products and services, so that manufacturing, one of Korea’s core assets, can secure world-leading competitiveness. We will also work closely with companies in the M.AX Alliance to deliver tangible results on the ground, including higher productivity and greater value added across industry.”

Deputy Minister Kim added that MOTIR will also work to address labor shortages in key manufacturing industries and create new jobs through M.AX. Future M.AX conferences will be held as a series on topics such as data and robotics, while the Industrial Growth Forum will continue discussions across advanced technologies to develop a new growth model for Korean industry.