South Korea plans to have 30 percent of local companies adopt artificial intelligence technologies by 2030 to beef up competitiveness of local industries, the industry ministry said Friday.

The target marks a sharp rise from the current estimate of 1 percent, according to the Ministry of Trade, Industry and Energy.

"In a mid-and-long term perspective, (the government) plans to proactively find and foster future industries and seek a great transformation that can fundamentally revamp the country's industrial system," Industry Minister Lee Chang-yang said.

Lee added that the AI sector holds the key for the "digital transformation" of local businesses.

In detail, the industry ministry plans to help connect AI service providers with local businesses, including manufacturers, to help create customized solutions.

In 2023, the industry ministry plans to allocate 1 billion won ($801,000) to five projects, with the size of the program set to expand next year under cooperation with the Ministry of Science and ICT.

South Korea will also foster at least 100 companies that supply AI solutions worldwide by 2030, the industry ministry added. (Yonhap)