Korea to Transform Industrial Complexes into M.AX Hubs for Regional Growth

Opinion|
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By Kim Jeong-kwan, Minister of Trade, Industry and Energy
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[Open Songhyeon] Industrial complex as a regional growth and M.AX hub - Seoul Economic Daily Opinion News from South Korea
[Open Songhyeon] Industrial complex as a regional growth and M.AX hub

"Zero, 76 seconds, 91%."

These three numbers represent the chilling sense of crisis I felt during my visit to Xiaomi's Beijing automobile factory late last year. The entire value chain—from orders to supply chain management to finished vehicle production—was connected online, resulting in "zero" inventory. It took just "76 seconds" to manufacture one car. With "91%" of the production line automated, the facility resembled a "dark factory" where robots produce around the clock with the lights off. This is a glimpse of Chinese manufacturing's formidable advance, rapidly integrating artificial intelligence across its entire industrial base.

Manufacturing with world-class competitiveness has been at the center of Korea's economic growth. However, our manufacturing sector faces challenges including declining productivity, population decrease, and intense technological competition. Not only China but countries worldwide are focusing on industrial AI competition to address these challenges. Embedding AI's DNA into manufacturing is no longer a choice—it is a matter of survival.

The Ministry of Trade, Industry and Energy launched the "Manufacturing AI Transformation (M.AX) Alliance" last September. We are developing industry-specific AI application models centered on 10 divisions covering key industries including automobiles, shipbuilding, semiconductors, batteries, and robotics. Though less than six months have passed since launch, participating organizations—including companies, universities, and research institutes—have grown to approximately 1,300, forming the M.AX ecosystem. Concrete results are emerging, with over 100 AI factories established and humanoid robots deployed at 10 plants.

This year, the ministry has set the "5 Poles, 3 Special Zones" regional policy as its top priority, aiming to deliver "growth to regions and vitality to businesses." More than 1,300 regional industrial complexes house core manufacturing industries including automobiles, shipbuilding, semiconductors, and steel. This is why industrial complexes must serve as hubs for M.AX's regional expansion.

Manufacturing AI transformation is a race against time. Since regional growth depends on industrial complex competitiveness, M.AX must spread rapidly with these complexes as bases. The "Industrial Complex AX Division" was launched in Changwon late last month. Adding to the existing 10 divisions, we now have the M.AX Best 11 lineup in place. The Industrial Complex AX Division will serve as a "regional cooperation platform" with 500 local organizations participating, connecting companies and facilitating data collection, sharing, and utilization to lead AX expansion within regions.

The government will spare no support. First, by year-end we will designate 13 AX industrial complexes across the 5 Poles, 3 Special Zones regions including Changwon, upgrading them into "M.AX Clusters" combining AI and robotics ecosystems. We will establish regional innovation ecosystems with local universities and research institutes, making them hubs for M.AX expansion.

Second, we will support development of field-customized AI models to solve production process improvements and manufacturing challenges identified by the Industrial Complex AX Division. In particular, we will accumulate the tacit knowledge held by manufacturing craftsmen as data and expand core AI infrastructure including AI data centers and high-speed communication networks.

Finally, M.AX's success ultimately depends on people. Workers at small and medium-sized enterprises in industrial complexes must transform from laborers in difficult and dangerous 3D jobs into AI and robotics managers. We will operate M.AX Academies to cultivate AI talent together with regional universities and companies, while also expanding residential and cultural infrastructure to create spaces where young talent can stay and work in local areas.

I vividly remember the excitement I felt seeing the two building signs for "M.AX Factory" and "M.AX Academy" at the Changwon Industrial Complex AX Division launch ceremony. Recognizing that M.AX is our last card for manufacturing's future, all attendees pledged to join forces and act swiftly. I reaffirmed my commitment to devote all efforts so that the seeds of hope planted in Changwon spread to industrial complexes nationwide, realizing the dream of Korea becoming a global leader in manufacturing AI.

Original reporting by Kim Jeong-kwan, Minister of Trade, Industry and Energy for Seoul Economic Daily.

AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.

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