Research Institute for Local Companionship Platform Policy Forum on Global Future Industrial City Incheon and the Three AI Powerhouses

Incheon National University Research Institute for Local Companionship Platform brought public attention through a joint discussion among government, legislative, industrial, and academic sectors to the “Need for a Comprehensive Reassessment of Smart Factory Strategies to Rapidly Enhance the Competitiveness of Incheon and the Korean Manufacturing Industry in the Era of AI Transformation.”

The policy forum, co-hosted by Incheon National University (President Lee In-jae) and the Incheon Metropolitan Council’s Industrial Economy Committee (Chairman Kim Yoo-gon), and co-organized by the Research Institute for Local Companionship Platform (Director Hong Jin-bae) and the Incheon Chamber of Commerce and Industry (Chairman Park Joo-bong), was held on August 12 (Tuesday) at 2 p.m. in the plenary conference room (Main Building Room 302) of the Incheon Metropolitan Council.

In his opening remarks, Kim Yoo-gon, Chairman of the Industrial Economy Committee, emphasized that smart factories are a key strategy for the future competitiveness of Incheon’s manufacturing industry, noting the need for customized policies inclusive of small-scale businesses. He expressed hope that the forum would contribute to structural improvement and the development of the industrial ecosystem in Incheon. In a written congratulatory message read by Senior Research Fellow Nam Seung-gyun, Kim Kyung-soo, Chairman of the Presidential Committee for the Era of Local Autonomy, urged that the expansion of smart factories should not remain a mere increase in numbers, but instead lead to the creation of an AI-based industrial ecosystem, win-win cooperation between large and small enterprises, and stronger connections with regional industrial policies. He also expressed hope that the policy recommendations from the forum would be reflected in both central and local government policies, enabling Incheon and other regional manufacturing sectors to take a step forward.

Dr. Shin Bong-sam (Visiting Research Fellow, Institute of Korean Public Administration, Seoul National University; former Secretary-General of the Fair Trade Commission) delivered the keynote presentation, pointing out that Incheon’s manufacturing industry—an essential pillar of the local economy—is facing serious challenges such as the nation’s lowest productivity and declining competitiveness in core industries. He stressed that smart factories must serve as the starting point for a breakthrough. In particular, he highlighted the need to reformulate strategies so that local governments play a leading role in central government policies on smart factories, large corporations expand their participation, and win-win cooperation and fair trade practices are reinforced in order to swiftly enhance SME competitiveness and innovate the regional industrial ecosystem in the era of AI transformation. He also expressed concern that Incheon’s smart factory support budget for this year has been reduced to one-fourth of the 2021 level. Referring to a recent survey conducted jointly with the Incheon Chamber of Commerce and Industry, which showed that many Incheon companies are willing to adopt or upgrade smart factories, he called for urgent countermeasures from both local and central governments.

The discussion session, moderated by Professor Yoo Woo-sik (Department of Industrial and Management Engineering, INU), featured panelists including Shin Sung-young (Vice Chairman, Industrial Economy Committee, Incheon Metropolitan Council), Chae Yi-bae (Jeollabuk-do Future Planning Committee; former National Assembly member), Yoo Young-seok (Director, Economic Promotion Office, Incheon Chamber of Commerce and Industry), Professor Cho Jin-pyo (Department of Smart Materials and Process Engineering, Inha University), Hong Sang-woo (CEO, Hana Metal Co., Ltd.), and Lee Nam-joo (Director, Future Industry Bureau, Incheon Metropolitan City).

Councilor Shin Sung-young pointed out that Incheon has long suffered from reverse discrimination in metropolitan policies, resulting in insufficient support in science and technology/R&D, stressing the urgent need for institutional support and budget increases, with a focus on strengthening industrial competitiveness through AI-driven manufacturing innovation. He emphasized that relevant legislation, such as an “AI Basic Ordinance,” and the establishment of a regional science and technology ecosystem are in progress. He also noted that support for small-scale businesses in Incheon faces structural limitations, calling for cooperation among the city, research institutes, and industry to create tailored innovation models and improved support systems.

Committee Member Chae Yi-bae, drawing on his experience in cooperative smart factory projects, emphasized that smart factories are central to productivity improvement and manufacturing innovation in SMEs. He argued that practical improvements tailored to the field and the commitment of CEOs are more crucial than grand technological solutions, and suggested that Jeollabuk-do’s large corporation–local government cooperation model should be expanded. He also proposed that manufacturing AI can enhance competitiveness by codifying tacit knowledge (skills and know-how) into explicit knowledge (documents, manuals, regulations).

Yoo Young-seok noted that while many Incheon manufacturers are experiencing growth stagnation, they remain hesitant to prepare for new business ventures. Despite recognizing the need for smart factories and AI transformation, they face difficulties due to inadequate support. He suggested that in order to actively promote manufacturing AI, expanded financial support, adoption of Incheon-style win-win models, creation of successful cases in root industries, strengthening supplier capabilities, standardizing data, and cultivating talent are necessary.

Professor Cho Jin-pyo emphasized that for the successful transition to smart factories, experts from universities and regional research institutions must be actively involved from the early stages. He stressed that difficulties in technology application and operational stabilization often occur during the initial establishment, but these can be overcome through field-tailored support and the deployment of professional talent to quickly achieve productivity and quality improvements.

CEO Hong Sang-woo highlighted that the introduction of smart factories and AI faces many on-site challenges, such as lack of supplier reliability, high maintenance costs, and difficulties in data collection. He warned that uniformly supporting standard models for companies lacking a genuine will to innovate may waste resources, suggesting instead that support for process analysis using retired experts and graduate students, as well as assistance with maintenance costs, could provide practical solutions.

Director Lee Nam-joo explained that Incheon City is currently promoting manufacturing AI transformation, stressing the need to expand region-specific budgets for advancement and introduce large corporation–local government win-win models. He also called for resolving reverse discrimination against the metropolitan area, improving the linkage structure among the government, the Korea Federation of SMEs, and technology parks, as well as reorganizing budget systems for more effective implementation, with active support from the city council.

In closing remarks, Dr. Shin Bong-sam emphasized the urgency of swift implementation, noting that strengthening manufacturing competitiveness and responding to the AI transformation are pressing challenges. Professor Yoo Woo-sik concluded the forum by underlining the necessity of continuous cooperation among universities, local communities, and industries.

Group Photo of the Research Institute for Local Companionship Platform Policy Forum on Global Future Industrial City Incheon and the Three AI Powerhouses