Changwon Special City is set to support the transition of its manufacturing sector to artificial intelligence (AI) with a foundation for industry-academia cooperation and the establishment of a dedicated 5G communication network for industrial complexes.
The city announced that its "Manufacturing AX Industry-Academia Innovation Park Project" and "5G Specialized Network Infrastructure Project" have been selected under the Ministry of Trade, Industry and Energy's "2026 Smart Green Industrial Complex Support Project". The projects will run from August 2026 to December 2028, with a total budget of 21.636 billion won, including 6.636 billion won for the Innovation Park and 15 billion won for the 5G network. Of this, 16.5 billion won will come from national funds.
The city plans to connect these initiatives with the existing "Smart Green AX Demonstration Industrial Complex Project" to develop the Changwon National Industrial Complex and the Masan Free Trade Zone as AI autonomous manufacturing demonstration hubs. The existing demonstration complex project is a separate initiative with a total investment of 22.2 billion won, running from September 2025 to December 2028.
The Manufacturing AX Industry-Academia Innovation Park will be centered around the Masan Free Trade Zone and Bongam Industrial Complex. Funding will consist of 6 billion won from national funds, 600 million won from the city, and 36 million won from private contributions.
The project includes the establishment of GPU servers and IoT-based shared AI infrastructure, operation of a manufacturing data library, training for current employees, and a concept verification competition. The city aims to train over 250 specialized personnel in Manufacturing AX during the project period.
The 36 million won in private contributions is not a cash investment from participating companies but is the equivalent value of the labor costs of professors from Gyeongnam National University. A city official stated, "The 36 million won from private contributions reflects the labor costs of Gyeongnam University professors, and participating companies will be recruited through a separate announcement after the project is confirmed and agreements are signed." The scope of support for each company and selection criteria will be determined in future announcements.
No provincial funding has been allocated for the Manufacturing AX Industry-Academia Innovation Park. In contrast, the 5G specialized network project includes 1.35 billion won from provincial funds and 1.35 billion won from city funds.
The city cited the project structure, which requires local funding to cover more than 10% of the total project cost, and limited local finances as reasons for this allocation. A city official explained, "Not only the Changwon National Industrial Complex but also the Masan Free Trade Zone and Bongam Industrial Complex require a foundation for manufacturing transition. Due to budget constraints, local funds have been concentrated on the 5G specialized network project."
The city funds for the 5G specialized network will be allocated as follows: 400 million won in 2026, 500 million won in 2027, and 450 million won in 2028. The annual distribution of national and provincial funds will be determined during the project planning process.
A total of 15 billion won will be invested to establish a shared 5G specialized network in the industrial complex. This funding will come from 10.5 billion won in national funds, 1.35 billion won each from provincial and city funds, and 1.8 billion won from private contributions. The project aims to create a shared infrastructure for a 5G core network and integrated control system, enabling companies in the industrial complex to collect and transmit manufacturing data in real-time. It will also establish a demonstration environment for AI-based quality inspection and predictive maintenance services, reducing the burden of AI adoption for small and medium-sized enterprises by eliminating the need for individual companies to build expensive communication infrastructure.
There have been previous instances of individual companies establishing their own 5G specialized networks. However, the city emphasized that the basis for its claim of being the "first in the nation" lies in the establishment of a shared communication network specifically for industrial complexes. In a written response, the city stated, "The establishment of a 5G specialized network for industrial complexes is the first in the nation."
Changwon aims to increase the AI transition rate among manufacturing companies in the industrial complex to 30% through the existing demonstration complex project. This goal is based on the 225 companies that will establish intermediate stages 1-2 of smart factories in Changwon by 2024 through the Gyeongnam Smart Factory Construction Project. The city has set a target of converting over 70 of these companies to AX.
Support will be provided through site visits and technical consulting via the AX Comprehensive Support Center. Technical criteria for determining AI transition companies and performance indicators for achieving goals will be specified in subsequent project plans.
The leading factories in the existing Smart Green AX demonstration complex project include Doosan Enerbility, Hyundai Wia, and Samhyun. These three companies were selected through a public competition in August 2025, with the first-year agreement signed in October 2025 and the second-year agreement in March 2026.
The ratio of national and local funding support compared to the total project cost is 2.25% for Doosan Enerbility, 8.69% for Hyundai Wia, and 6.98% for Samhyun. The self-funding ratios for the companies are 4.05% for Doosan Enerbility, 5.61% for Hyundai Wia, and 1.86% for Samhyun.
Changwon plans to promote the dissemination of manufacturing data and AI models obtained from leading factories to small manufacturing companies through site visits and technical consulting via the AX Comprehensive Support Center. The city aims to spread autonomous manufacturing models that apply AI in machinery and defense-centered manufacturing environments and strengthen the industry-academia-research cooperation system to expand tailored technical support and demonstrations.
Shim Dong-seop, Director of the Future Strategy Industry Bureau of Changwon, stated, "The establishment of 5G and AI-based infrastructure will serve as a turning point for the Changwon manufacturing industry to transition to an AI-based autonomous manufacturing system. We will ensure the smooth progress of the project to position Changwon as a leading city in manufacturing innovation in South Korea."
Changwon plans to announce the recruitment of participating companies for the Industry-Academia Innovation Park after finalizing the agreements and implementation plans, and will proceed with the establishment of the 5G specialized network and the Manufacturing AX demonstration project by December 2028.
* This article has been translated by AI.
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