Liberty Labs, a Korean-based startup, has secured investment from Bass Investment and Seoul Techno Holdings to transition small and medium-sized manufacturing firms into AI-driven enterprises. The investment amount remains undisclosed.

Recognizing the productivity decline in many solid Korean SMEs due to the lack of widespread technology adoption, Liberty Labs aims to address this issue. With factors like an aging population, inflation, and a generational aversion to manufacturing, 58% of SMEs face labor shortages. Liberty Labs seeks to apply prevalent technologies, including AI, to revitalize outdated industry sectors, transforming them into AI-based manufacturing entities.

To enter the market, Liberty Labs plans to acquire and merge small and medium-sized manufacturing companies. With over 30 years of history, more than 81% of SMEs have CEOs over 60, and their successors encounter challenges such as succession reluctance and inheritance tax issues.

Liberty Labs intends to enhance productivity, efficiency, and management structures through digital transformation and AI adoption. With a team comprising PE experts, strategic consultants, M&A lawyers, and software engineers, Liberty Labs is well-equipped to acquire and integrate technology into small and medium-sized manufacturing firms.

Jung Jaemoon, Liberty Labs’ CEO, expressed plans to acquire precision component manufacturing companies and drive technological transformation. He stated, “We will introduce software and AI to acquired firms, significantly improving productivity.”