Tech giant Samsung Electronics said Monday it would join forces with the Ministry of Trade, Industry, and Energy to make conventional factories run by small and mid-sized enterprises “smarter.”

Signing a memorandum of understanding on the day, Samsung and the ministry agreed to make a joint investment of 30 billion won ($25 million) to refurbish the outdated factories.

The counterparts will respectively invest 15 billion won until 2016 to install factory automation systems for 600 SMEs.

Samsung would also deploy a troupe of engineering experts and officials for the initiative to support the SMEs and set up the so-called “Smart Factory Academy,” to give consultations on how to build and operate smart factory systems.

The ministry will try to nurture experts in smart factory technology and to cooperate with other ministries including the Ministry of Science, ICT and Future Planning to accelerate the 30-billion-won project.

Kim Jong-ho, president of the Seoul-based tech firm, said “I hope the MOU will become a new exemplar that promotes coprosperity between conglomerates and SMEs, and more smart factories are built across the nation.”

The MOTIE plans to install smart automation systems at 10,000 factories in the nation by 2020 in collaboration with Korean conglomerates, including SK Group, and POSCO.

By Kim Young-won  (wone0102@heraldcorp.com)