Korea KIAT AI Industry Innovation Program 2026
The Korea Institute for Advancement of Technology (KIAT) AI Industry Innovation Program supports Korean manufacturing, service, and technology companies in implementing AI solutions that enhance productivity, quality, and competitiveness. This program provides substantial funding to accelerate AI adoption across traditional industries and emerging sectors.
- Korean manufacturing companies (all industrial sectors)
- Service industry companies implementing AI solutions
- Technology companies developing industrial AI products
- Research institutes and universities (for collaboration projects)
- Startups with innovative AI business models
- Registered Korean company with valid business license
- Minimum 1 year of business operations history
- Financial stability (no active bankruptcy proceedings)
- Compliance with Korean labor laws and tax regulations
- Technical capability or committed partnerships with AI solution providers
- Determine which application round to target (Primary: January-February, Secondary: July-August if available)
- Prepare detailed technical proposal (20-40 pages) describing current industrial problem, AI solution architecture, and expected business impact
- Develop comprehensive budget breakdown with quotes from AI vendors and system integrators
- Gather company documents (business registration, financial statements for past 2 years)
- Document technical capability (team resumes, past project portfolio, or partnership agreements)
- Obtain letters of intent from customers or partners who will validate the AI solution
- Complete KIAT application form in Korean language
- Submit application by deadline (February for primary round, August for secondary)
- Participate in technical review interview if shortlisted (typically March or September)
- If approved, sign grant contract with KIAT (April or October)
- Begin project implementation with quarterly progress reports
- Complete semi-annual review meetings and submit final comprehensive report
Overview
The Korea Institute for Advancement of Technology (KIAT) AI Industry Innovation Program is South Korea's premier funding initiative for artificial intelligence implementation in industry. With grants reaching up to ₩500 million per project and subsidy rates of 50-70%, this program enables companies to deploy AI solutions that transform operations, improve product quality, optimize processes, and create new business models. KIAT prioritizes projects that demonstrate clear industrial impact and contribute to Korea's competitiveness in the global AI economy.
What the Program Covers
Eligible AI Innovation Projects
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Smart Manufacturing & Industry 4.0
- AI-powered quality control and defect detection
- Predictive maintenance for production equipment
- Production planning and scheduling optimization
- Supply chain management and logistics AI
- Digital twin and simulation systems
-
Process Optimization
- Energy consumption optimization using AI
- Waste reduction and resource efficiency
- Yield improvement in manufacturing
- Automated process control systems
- Real-time production monitoring and analytics
-
Product Development & Design
- AI-assisted product design and engineering
- Materials science and R&D acceleration
- Rapid prototyping with AI
- Customer requirement analysis for new products
- Generative design for optimization
-
Business Process Automation
- Document processing and data extraction
- Customer service automation (Korean language chatbots)
- Sales forecasting and demand prediction
- Inventory management optimization
- HR and administrative process automation
-
Research & Development
- AI for scientific research and data analysis
- Drug discovery and biotechnology AI
- Materials discovery and testing
- Simulation and modeling with machine learning
- Experiment optimization and design
Funding Structure
Grant Amounts
- Small Companies (<50 employees): Up to ₩300 million
- Medium Companies (50-300 employees): Up to ₩400 million
- Large Companies (>300 employees): Up to ₩500 million
Subsidy Rate
- Small/Medium Enterprises (SMEs): Up to 70% of eligible costs
- Large Corporations: Up to 50% of eligible costs
- Industry-University Collaboration: Up to 75% of eligible costs
Eligible Costs
- AI software licenses and platforms
- Cloud computing infrastructure and data storage
- AI hardware (GPUs, edge computing devices, sensors)
- External AI consultants and system integrators
- Data collection, labeling, and preparation
- AI talent salaries (data scientists, ML engineers)
- Training and capability building
- Pilot testing and validation
Application Requirements
Organization Eligibility
Qualified Applicants:
- Korean manufacturing companies (all sectors)
- Service industry companies implementing AI
- Technology companies developing AI solutions
- Research institutes and universities (collaboration projects)
- Startups with innovative AI business models
Company Requirements:
- Registered Korean company (business license required)
- Minimum 1 year of business operations
- Financial stability (no bankruptcy proceedings)
- Compliance with labor and tax regulations
- Technical capability or committed AI partners
Technical Proposal Components
-
Industrial Problem Statement
- Current operational challenges or inefficiencies
- Impact on productivity, quality, or competitiveness
- Market opportunity or competitive pressure driving AI adoption
- Quantified baseline metrics
-
AI Solution Architecture
- Technology approach (machine learning, computer vision, NLP, etc.)
- Data sources and data infrastructure plan
- AI model development methodology
- Integration with existing systems (MES, ERP, SCADA, etc.)
- Deployment strategy (cloud vs. on-premise)
-
Implementation Plan
- Project timeline with key milestones (typically 12-24 months)
- Resource allocation (internal team + external partners)
- Pilot testing approach and success criteria
- Rollout strategy after successful pilot
- Risk mitigation plan
-
Expected Business Impact
- Productivity improvement (% increase in output, reduction in defects)
- Cost savings (labor, materials, energy, downtime)
- Quality improvements (defect rates, customer satisfaction)
- Revenue growth opportunities
- Return on investment (ROI) calculation
-
Technology Transfer & Capability Building
- Staff training plan for AI systems
- Knowledge retention strategy
- Potential for technology diffusion to other companies
- Contribution to Korea's AI ecosystem
Application Process
Timeline (Annual Cycle with Rolling Deadlines)
Primary Round:
- January-February: Application period
- March: Technical review and evaluation
- April: Funding decisions announced
- May: Contract signing and project kickoff
Secondary Round (if budget available):
- July-August: Application period
- September: Review and selection
- October: Project start
Required Documents
- Application Form (KIAT standard template in Korean)
- Technical Proposal (20-40 pages including diagrams and specifications)
- Budget Plan (detailed cost breakdown with vendor quotes)
- Business Registration Certificate (Korean company documents)
- Financial Statements (last 2 years)
- Technical Capability証 Proof (team resumes, past project portfolio)
- Partnership Agreements (if collaborating with universities or AI vendors)
- Letters of Intent (from customers or partners who will validate the solution)
Review Criteria
Technical Excellence (30%)
- AI solution appropriateness and innovation
- Technical feasibility and team capability
- Technology readiness level
Industrial Impact (35%)
- Magnitude of productivity/quality/cost improvement
- Scalability to other companies or industries
- Contribution to Korea's industrial competitiveness
Business Viability (25%)
- ROI credibility and payback period
- Market potential and commercialization plan
- Company financial health
Ecosystem Contribution (10%)
- Technology transfer and knowledge sharing
- Collaboration with universities or research institutes
- Contribution to Korean AI industry development
Post-Award Requirements
Reporting Obligations
- Quarterly Progress Reports: Technical milestones, budget expenditure, KPI tracking
- Semi-Annual Review Meetings: Presentation to KIAT program office
- Final Report: Comprehensive results, ROI achieved, lessons learned
- Case Study: Contribution to KIAT knowledge base (company name can be anonymized)
Performance Measurement
- Baseline vs. Results: Document before/after metrics
- Financial Impact: Cost savings and revenue increases
- Operational Metrics: Productivity, quality, efficiency improvements
- Knowledge Transfer: Number of employees trained, publications, patents
Success Stories
Case Study 1: AI-Powered Quality Inspection for Semiconductor Manufacturer
Recipient: Medium-sized semiconductor component manufacturer Funding: ₩350 million (70% subsidy) Implementation: Computer vision system for automated defect detection Outcome: Reduced defect escape rate from 2.3% to 0.4%, decreased inspection time by 80%, improved yield by 6%, ROI achieved in 14 months. System now being licensed to other manufacturers.
Case Study 2: Predictive Maintenance for Automotive Parts Supplier
Recipient: Large automotive parts manufacturer with 3 factories Funding: ₩480 million (50% subsidy) Implementation: IoT sensors + machine learning for equipment failure prediction Outcome: Reduced unplanned downtime by 65%, extended equipment lifespan by 30%, saved ₩2.1 billion annually in maintenance costs. Published technical paper in collaboration with university partner.
Case Study 3: AI Demand Forecasting for Food Manufacturing
Recipient: SME food processing company Funding: ₩220 million (70% subsidy) Implementation: Machine learning model for demand prediction and production planning Outcome: Reduced food waste by 42%, improved on-time delivery from 78% to 96%, decreased inventory costs by ₩380 million annually, enabled 25% capacity increase without new equipment.
Tips for Strong Applications
Do's
✅ Quantify current problems clearly - Use specific metrics (defect rates, downtime hours, cost figures) ✅ Show technology readiness - Demonstrate team has AI capability or committed partners ✅ Include pilot plan - Start with focused scope, prove value, then scale ✅ Address change management - Explain how workers will adapt to AI systems ✅ Highlight industry impact - Show how success could benefit other Korean companies ✅ Provide strong letters of support - Especially from customers who will use the AI solution
Don'ts
❌ Don't propose research without clear application - KIAT funds industrial implementation, not pure research ❌ Don't underestimate data requirements - AI needs quality data; explain data collection plan ❌ Don't ignore integration challenges - Legacy systems in factories can be complex ❌ Don't skip employee impact analysis - Address concerns about AI replacing jobs ❌ Don't overstate AI capabilities - Be realistic about what AI can and cannot do
Additional Resources
KIAT AI Innovation Program Office
- Website: https://www.kiat.or.kr/site/eng/ (English section available)
- Email: ai-innovation@kiat.or.kr
- Phone: +82-2-6009-3000 (weekdays 9:00-18:00 KST)
- Regional Offices: Available in Seoul, Busan, Daegu, Gwangju, Daejeon
Related Programs & Resources
- IITP AI R&D Funding: For earlier-stage AI research projects
- NIPA Software Development: For AI software product development
- Korea AI Industry Association: Networking and best practices
- KISTEP Technology Impact Assessment: Help quantifying industrial benefits
Application Support Services
- KIAT Innovation Centers: Free consultation for applicants
- University Technology Transfer Offices: Partnership facilitation
- Korean IP Office: Patent filing support for AI innovations
- SME Support Foundation: Grant writing assistance for small companies
Why Choose This Program
Advantages
- Generous funding amounts: Up to ₩500 million with high subsidy rates
- Industrial focus: Prioritizes practical implementation over theoretical research
- Flexible scope: Supports both manufacturing and service sector AI
- Ecosystem benefits: Access to KIAT's network of companies and researchers
- Fast-track for SMEs: Higher subsidy rates and dedicated support for smaller companies
Strategic Context
South Korea's government has designated AI as a national strategic priority, with goals to become a global top-4 AI power by 2030. KIAT's program is central to achieving this through industrial AI adoption. Successful projects receive visibility, potential follow-on funding, and opportunities to showcase at government AI summits.
Contact Pertama Partners
Pertama Partners has helped Korean manufacturers and technology companies secure KIAT AI Industry Innovation grants. Our services include:
- Grant application strategy and proposal writing (Korean and English)
- Technical solution design and AI vendor selection
- ROI analysis and business case development
- Partnership facilitation with universities and research institutes
- Implementation planning and project management
- Change management and employee training programs
- Performance measurement and reporting support
Contact us to discuss your AI innovation funding needs and maximize your application success.
Frequently Asked Questions
Frequently Asked Questions
Korean subsidiaries of foreign companies can apply if they have proper Korean business registration and meet all eligibility criteria. However, the applying entity must be a Korean legal entity (not the foreign parent company directly). Many multinational manufacturers in Korea successfully receive KIAT funding for their local operations.
First-time applicants typically receive ₩150-300 million depending on company size and project scope. KIAT prefers to fund smaller pilot projects first, then provide expansion funding in subsequent years after proven success. SMEs can receive up to 70% subsidy even on smaller projects, making this accessible for companies new to AI.
The proposal should be detailed enough for technical reviewers to assess feasibility, but also accessible to business evaluators. Include: (1) Clear problem statement with current metrics, (2) AI technology approach with diagrams, (3) Data sources and infrastructure plan, (4) Integration architecture, (5) Expected quantified results. If your team lacks AI expertise, partner with a university or AI vendor and have them co-author the technical sections.
KIAT understands that AI projects carry inherent risk. If you encounter challenges: (1) Report issues early in quarterly updates, (2) Propose adjustments to scope or timeline (subject to approval), (3) Document lessons learned thoroughly. You won't be required to return funds if you made good faith efforts, followed the plan, and reported honestly. However, fraudulent reporting or fund misuse requires repayment and may result in debarment from future programs.
Yes, foreign cloud platforms and AI tools are permitted. KIAT does not require use of Korean technology. The criteria are: (1) Does it solve the problem effectively? (2) Is it cost-efficient? (3) Does your team have expertise to use it? Many successful projects use AWS SageMaker, Google Cloud AI, Microsoft Azure, or other international platforms integrated with Korean industry systems.
- •AI for Manufacturing & Industry 4.0
- •Computer Vision for Quality Control
- •Predictive Maintenance with Machine Learning
- •AI for Supply Chain Optimization
- •Industrial IoT & Edge AI
- •Process Optimization with AI
- •AI for Product Design & Engineering
- •Korean Language NLP for Business Automation
- •Machine Learning Operations (MLOps)
- •AI Project Management for Industry
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