More than basic tasks: Korean companies introduce AI into core operations

Home > Business > Tech

More than basic tasks: Korean companies introduce AI into core operations

Published: 09 Jun. 2025, 14:43 Updated: 09 Jun. 2025, 18:20

Audio report: written by reporters, read by AI

The Samsung flag flies in front of Samsung Electronics' headquarters in Seocho District, southern Seoul, on April 30. [NEWS1]

A growing number of Korea’s largest companies are integrating AI into core operations — far beyond drafting emails or summarizing meeting notes — applying it to software development and even manufacturing processes.

Samsung Electronics recently announced on its internal bulletin board that it began beta testing Cline, an in-house AI coding agent, for employees in its Device eXperience (DX) Division, according to industry sources on Sunday.

The system enables users to give commands like “Create a login function,” after which the AI generates, revises and tests code automatically.

“Cline can handle complex software development tasks, not just assist with basic coding,” the company said.

Samsung has customized Cline, which is based on open-source AI, for secure in-house use. Following enhancements through the end of this month, a formal launch is expected as early as July.

The company is also ramping up its transformation into an “AI-driven company,” establishing an AI Productivity Innovation Group within the DX Division to support AI infrastructure, deployment and best-practice sharing. Each business unit now also hosts an AI productivity innovation office.

Samsung Electronics' headquarters in Seocho District, southern Seoul is seen on April 30. [YONHAP]

AI enters the production floor

LG Display is also overhauling operations with AI.

“As time passes, the competitiveness gap between companies that possess AI-centered intelligence and those that don’t will only widen,” wrote LG Display CEO Jeong Cheol-dong in a recent letter to employees. “Let’s secure a competitive edge in timely development, yield rate, productivity and costs through AI adoption.”

The company recently deployed AI to its OLED production, which involves over 140 process steps. Previously, engineers manually managed thousands of data variables and machine settings at each stage.

Now, its proprietary AI continuously monitors and analyzes manufacturing data around the clock, cutting the time needed to detect and address quality issues from three weeks to just two days. The cost savings amount to approximately 200 billion won ($147 million) annually.

LG Display CEO Jeong Cheol-dong speaks during a press event on the fourth-generation OLED panel technology at LG Science Park in Gangseo District, western Seoul on Jan. 16. [YONHAP]

“In the face of intensifying Chinese competition, we aim to delegate repetitive tasks to AI and redeploy talent toward bolstering technological competitiveness,” said a company representative.

Employees are also encouraged to apply AI to personal workflows.

“Employees with an interest in data analytics and AI should experiment freely,” said Jeong. “The company will provide the necessary infrastructure.”

A 7.6 percent productivity boost

AI utilization is rapidly spreading across major companies. Around four in 10 Korean companies have incorporated AI into their operations, according to a report from the Ministry of Trade, Industry and Energy titled “Survey on Industrial Infrastructure and AI Utilization Plans.”

Seoul Digital Foundation Chair Kim Man-ki speaks during a launching ceremony of the Seoul AI Foundation (SAIF) at the Korea Chamber of Commerce and Industry in Jung District, central Seoul on May 21. [NEWS1]

Among large enterprises, the adoption rate was 65.1 percent, significantly higher than that of small- and mid-sized companies, which had adoption rates of 35.6 percent and 31.2 percent, respectively. Companies that adopted AI also reported higher sales and added value.

A study from the Korea Chamber of Commerce and Industry titled “The Impact of AI Adoption on Corporate Performance and Productivity” found that companies using AI saw average added value rise by 7.6 percent and revenue grow by 4 percent.

The proportion of high-performing and high-productivity firms also increased following AI adoption.

“The longer manufacturing delays AI integration, the greater the risk of falling behind China and losing industrial competitiveness,” the chamber said. “For successful AI adoption, policy efforts must go beyond technical support and focus on boosting executives’ understanding and decision-making capabilities regarding AI.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK HAE-LEE [[email protected]]