South Korea's then Ministry of Trade, Industry and Energy (MOTIE) established the Korea Academy of Industrial Technology (KAITEC) in 1989 to strengthen the technological base of small and medium enterprises (SMEs).

[2] By the middle of the 1990s, KITECH's annual budget was around US$130 billion, and employed a staff of one thousand in five sub-institutes.

[2] The institute conducted materials research into environmentally friendly manufacture of metal alloys, and sold the technology to the private sector for 28.2 billion won.

[5] It also fostered the exchange of technological know-how with foreign research institutes by creating the Global Venture Investment Center in Seoul.

[6] Together with Korea Railroad Research Institute (KRRI) and the company Rotem, KITECH developed the HSR-350x, a high-speed train with domestic technology.