SEOUL — Small and medium-sized enterprises (SMEs) in South Korea are increasingly calling for urgent government intervention to overcome critical barriers to adopting artificial intelligence (AI). Despite a strong desire to transition toward AI-driven operations, many SMEs are struggling with a severe lack of specialized talent and inadequate infrastructure.

These concerns were brought to the forefront during the 100th meeting of the SME Committee of the Korea Chamber of Commerce and Industry (KCCI), held at the KCCI building in Seoul on June 30. The meeting featured Ryu Je-myung, the 2nd Vice Minister of Science and ICT, who engaged with industry leaders on the nation’s future AI strategy.

The KCCI SME Committee, which has been a pivotal voice for small businesses since its inception in April 2002, underscored the growing divide in AI accessibility. Yoon Seok-geun, chairman of the committee, highlighted the urgency of the situation, stating, “While we are in an era of industrial transformation driven by AI, SMEs find it nearly impossible to secure the necessary expertise and technology on their own. We desperately need a ‘priming water’—initial government support—to attract young, talented professionals and to re-educate our existing workforce.”

During the session, the committee members proposed a multi-faceted approach to government support. Their key recommendations included the establishment of a unified AI support channel to streamline access, the opening of public AI infrastructure to private SMEs, and the provision of tailored consulting and investment support for ‘physical AI’—AI integrated with hardware systems.

Seong Ki-moon, CEO of Moltex, a company specializing in advanced precision molds, shared the challenges his firm faces while attempting to implement a fully automated AI manufacturing system. “We are trying to innovate, but the foundational industrial base is insufficient, and the shortage of specialized talent is a major bottleneck,” Seong noted. “We need concrete measures to create industry-specific AI applications and programs to foster talent that can translate AI theory into practical industrial results.”

In response, Vice Minister Ryu outlined the government’s ambitious “K-AI Policy Direction,” which aims to propel South Korea into the ranks of the world’s top three AI superpowers, alongside the U.S. and China. Ryu emphasized that AI is the “core engine and strategic asset” determining national industrial competitiveness.

The government’s roadmap includes several pillars: securing massive AI infrastructure such as Graphics Processing Units (GPUs), achieving competitiveness in sovereign AI foundation models, launching massive Artificial Intelligence Transformation (AX) projects across public and industrial sectors, and investing in indigenous AI technologies. Furthermore, the strategy addresses the talent gap by implementing a tiered education system—from basic AI literacy for the general public to advanced training for professional engineers.

Kang Myung-soo, an executive at KCCI, expressed optimism that this meeting would serve as a catalyst for meaningful policy changes. “The KCCI will continue to work closely with the government to ensure that the necessary institutional support is in place, enabling SMEs to overcome these hurdles and strengthen their competitiveness in the rapidly evolving global market,” he said.

As the government moves forward with its “AI-3” initiative, the success of these policies will likely hinge on how effectively the needs of the smaller, yet vital, segments of the Korean economy—the SMEs—are integrated into the national vision.

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