LG CNS said on Tuesday it signed a business agreement with the Korea Federation of SMEs to support AI transformation for small manufacturing companies.

The signing ceremony was held on Tuesday at the federation's office in Yeouido, Seoul. LG CNS CEO Shin Kyun (현신균) and federation Chairman Kim Ki-moon (김기문) attended, among others.

The agreement was prepared to help narrow the AI utilisation gap between large and smaller companies in line with the government's policy to expand AI transformation among small and medium-sized enterprises.

LG CNS will provide a total of 4.2 billion won over two years in three areas: AI transformation training, technical support, and distribution and marketing support. It will focus its capabilities on supporting small manufacturers that face difficulties in shifting to AI transformation due to a lack of data and skilled workers.

Linked to the government's "Large-Small Business Win-Win AI Transformation Leading Model Project", it will also build leading AI transformation models in manufacturing. For small manufacturers selected by the federation, LG CNS will deploy its technology and professional staff across the process, from building data collection systems to developing and applying AI models and system integration.

LG CNS will build a "Manufacturing AI Transformation Starter Package" that combines manufacturing execution systems (MES) and statistical process control (SPC) with a manufacturing-focused large language model (LLM). It will digitise work standards and equipment manuals into digital assets and implement a natural-language-based decision-making system.

For training support, it will run AI transformation courses for small business management, including chief executives. It will also provide training and consulting to define key issues for each company and draw up execution plans.

For distribution and marketing support, it will use a digital marketing optimisation platform based on AI and mathematical optimisation. To help 100 small companies expand into overseas markets, it will provide an Amazon-focused e-commerce platform, "LG Optapex". In the domestic market, it will use a marketing optimisation platform (MOP) to improve advertising efficiency on services such as Naver Shopping.

LG CNS and the federation plan to begin identifying small companies to support and to flesh out the operating plan for the programme.

Kim said he expects the federation's accumulated manufacturing data and on-site data from small companies to be combined with LG CNS' AI technology to achieve practical AI transformation. He said he would do his best to ensure the win-win model between large and smaller companies takes root at small companies' worksites.

Shin said AI transformation for small companies is a task directly linked to competitiveness across the industry. He said LG CNS will be a partner that drives practical growth for small companies by working together across the entire process, from training to manufacturing innovation and expanded marketing.