Posco has launched a recruitment drive for its acclaimed co-growth smart factory support program, reaffirming its commitment to boosting the manufacturing competitiveness of Korean small and medium-sized enterprises (SMEs). This strategic initiative, aimed at strengthening local suppliers, was officially announced by the steelmaker on Wednesday.
The comprehensive program, a collaborative effort with Korea’s Ministry of SMEs and Startups, is designed to empower small and mid-sized manufacturers by facilitating advanced factory automation and digital transformation.
Since its inception in 2019, Posco has demonstrated substantial investment, cumulatively injecting 12 billion won ($8 million) into co-prosperity funds. These efforts have directly contributed to the successful establishment of 632 smart factories across Korea.
Participating companies have consistently reported significant and measurable operational improvements as a direct result of the program, according to Posco’s findings.
One notable success story is nonferrous metal equipment manufacturer Seil Precision Machinery. Through the program, Seil upgraded its enterprise resource planning (ERP) and manufacturing execution systems (MES), leading to a five-day reduction in manufacturing lead times and a 0.69 percentage point decrease in defect rates.
Similarly, ship parts manufacturer Daechun successfully integrated an ICT-linked warehouse automation system. This innovation fully automated previously manual production and logistics processes, resulting in a 23 percent reduction in shipment times and substantial cuts in overall logistics costs, Posco highlighted.
Looking ahead, the prominent steelmaker has committed to contributing an additional 2 billion won this year, further expanding its crucial support for SMEs.
Posco has also unveiled an innovative AI-focused track within the program. This new offering provides highly customized support, spanning from fundamental smart factory construction to sophisticated artificial intelligence implementation, meticulously tailored to each company’s specific operational needs and digital maturity levels.
Beyond its smart factory initiatives, Posco has significantly amplified its financial support mechanisms for small and medium-sized steel trading firms.
Complementing existing low-interest loan and ESG partnership funds, Posco recently inaugurated a 400 billion won steel supply chain stabilization fund. This substantial fund was established in close cooperation with the Korea Trade Insurance Corporation and the Industrial Bank of Korea, reinforcing market stability.
A Posco official commented, “These combined programs have successfully forged a comprehensive financial support ecosystem, now exceeding 1 trillion won.”
The official further affirmed, “We are dedicated to continuously fostering practical growth for Korean SMEs through robust smart factory support and essential financing assistance for our valued steel trading companies.”
