"There are concerns that the adoption of AI in manufacturing is lagging, but in my view, it is being implemented much faster than the general public perceives," said Jeong Ha-jung, CEO of Siemens Korea, during an interview with Aju Economy on September 16. He assessed the pace of AI transformation in South Korea's manufacturing sector, noting that the country possesses ample industrial data and expertise accumulated from global manufacturing hubs in semiconductors, automotive, and shipbuilding, which provides a strong competitive edge. He emphasized that the key moving forward is not just the quantity of data but how effectively it can be organized for AI to drive results on the production floor.
Jeong believes that the speed of advancements in manufacturing AI technology is exceeding expectations. He remarked, "Even global experts did not predict such a rapid transition from agentic AI to physical AI."
He highlighted South Korea's strength in its long-standing accumulation of high-quality data. "South Korea is a manufacturing powerhouse," he stated, adding that the necessary data for effective AI utilization is abundant, with extensive industry-specific knowledge and quality data available across sectors like semiconductor design and production, shipbuilding, marine, and automotive. He stressed, "The important question now is how to leverage this data through AI."
However, having data and being able to utilize it with AI are two different challenges. Data is often scattered in various formats, such as paper documents or Excel and Word files, necessitating a process of refinement and integration. Jeong noted, "While there is a lot of data, it is crucial to systematically classify it into formats that can be directly applied to digital industries," and he praised South Korea's large corporations for their strong capabilities, stating, "Korean conglomerates are truly world-class."
The challenge lies with small and medium-sized enterprises (SMEs), many of which lack the specialized personnel and investment capacity to adopt AI, despite recognizing its necessity. Jeong explained, "SMEs often know they need to adopt AI but feel overwhelmed due to a lack of expertise and funding. They need to decide which partners and technologies to integrate, and this is where government support appears necessary."
He pointed to the rapid AI transition in Chinese manufacturing as being supported by extensive government backing and a conducive environment for technology validation. "The Chinese government provides substantial support," he said, noting that it fosters an environment where various trials and errors in applying new technologies like AI and autonomous driving can be flexibly accepted, which is advantageous for industrial development.
Siemens is also committed to supporting the AI transformation of domestic manufacturers by integrating automation, industrial software, digital twins, and industrial AI. Jeong expressed, "The competitiveness of manufacturing AI is not just about how much technology is adopted, but how quickly results can be achieved on the production floor. We aim to be a long-term technology partner that helps Korean manufacturers connect AI to tangible business outcomes."
* This article has been translated by AI.
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