Korea Federation of SMEs Holds Root Industry Committee Meeting: "Expansion of Support for Root Industries Needed"

Discussion on AI Adoption and Support Measures for Root Industries

The Korea Federation of Small and Medium Business discussed key issues, including strategies for applying artificial intelligence (AI) to root industries and the implementation of regionally differentiated electricity rates.

The Korea Federation of SMEs held the '1st Root Industry Committee Meeting of 2026' on the 26th at the Federation of SMEs building in Yeouido. Chairman Paek Pyeongjae (fourth from the left) and others are taking a commemorative photo. Korea Federation of SMEs

The federation announced that it held the "1st Root Industry Committee Meeting of 2026" on May 26 at its headquarters in Yeouido.

The Root Industry Committee was established to explore ways to enhance the competitiveness of root industries—the backbone of manufacturing, such as mold, casting, and plastic processing—and to jointly address related issues. The committee is chaired by Pyungjae Park, Chairman of the Korea Surface Finishing Industry Cooperative.

During the meeting, Jaehwa Lee, policy chief at the National Root Industry Promotion Center, introduced the government and institutional support programs for root companies planned for 2026. Sangho Lee, CEO of Imfix and the inaugural president of the Korea Autonomous Manufacturing Platform Association (KAMPA), gave a presentation on AI adoption cases and future directions for root industries.

President Sangho Lee shared successful AI adoption cases in various root sectors, including auto parts, mold and injection, and plating. He emphasized the need to transition from individual process units to an "autonomous manufacturing system" that connects the entire manufacturing process.

In the subsequent roundtable, participants engaged in in-depth discussions on pressing issues facing the root industry. The committee members highlighted the growing burden of electricity costs in recent years and argued that, regarding the "regionally differentiated electricity rate system" the government plans to introduce within the year, electricity rates should be designed to reflect the industry's needs and take into account companies already located in the Seoul metropolitan area.

They also emphasized the need to increase the reduced support budget, even though the scope of the root industry has expanded from six to fourteen sectors, and called for practical measures to strengthen industrial competitiveness, such as improving workforce development systems.

Chairman Pyungjae Park stated, "Currently, the root industry is struggling due to rising energy costs, chronic labor shortages, and the supply chain pressure from low-cost Chinese products. There are limits to what individual companies can achieve on their own. If the root industry falters, the entire competitiveness of Korean manufacturing could be at risk. Therefore, systematic national-level development and field-oriented support must be provided."

This content was produced with the assistance of AI translation services.