Smart Factories Drive Korea's Industrial Future

Smart factories in Korea are transforming manufacturing through AI, IoT and automation, boosting efficiency, precision and global competitiveness across key sectors. By Daniel de Bomford and Quentin Lange

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The city of Ulsan on the east coast of South Korea is the birthplace of the Korean Automotive Industry. There lies the beating heart of Hyundai Motor Company's production facilities, the Ulsan Plant. It is the world's largest single automotive plant complex, producing 1.5 million vehicles annually. In 1975, it made the first Korean car ever to be exported and 50 years later, driving down the 700 football fields worth of the enormous plant feels like a rolling showcase of Hyundai's evolution. On your left, the refined family SUV, a Palisade, glides off the production line. Further along, robot arms gently lower Ioniq and Kona Electric frames onto test rails. At the same time, the unmistakable silhouette of the Avante sedan slips into its final polish at the end of the corridor.

In 2024, Korea's automobile exports reached USD 70.8 billion, just shy of its 2023 record of USD 70.9 billion, which eclipsed its previous record by 30 percent—a record set in 2022. The sector's incredible growth is fueled by value-added, eco-friendly and high-tech vehicles. Korean automakers Kia and Hyundai have gained significant market share internationally due to their competitively priced, feature-packed cars, reliability, and high resale value.

Key for any major manufacturing country, the local supply chains have been remarkably resilient, with suppliers providing robust, innovative and cost-effective technology and solutions. Kwang Myung (KMIN) works closely with Korean and international car manufacturers to produce automotive seat frames. CEO Byung Gun Lim says that as vehicles evolve and adapt, the technologies and functionalities for seat frames change too. "We are actively developing advanced seat frames equipped with features tailored to EVs, hybrids, and autonomous vehicles," he explains. KMIN collaborates directly with Korean OEMs, joining projects early in the lifecycle of new vehicles.