The BGA Korea team led by Managing Director B.J. Kim wrote an update to clients on a new comprehensive Mobility Innovation Road Map that seeks to significantly upgrade the country’s transportation industry.

Context

  • The road map covers the four sectors of autonomous driving, urban air mobility (UAM), digital logistics and mobility services. The Mobility Innovation Committee, which comprises transportation and information technology experts from the private sector, designed the plan.
  • Under the plan, Korea will commercialize level 4 autonomous passenger vehicles by 2027 and have level 4 vehicles account for half of all newly manufactured cars by 2035. The government also aims to launch UAM services between Seoul and major airports in 2025.

Significance

  • To ensure the plan’s smooth implementation, the Ministry of Land, Infrastructure and Transport (MOLIT) will provide necessary support by introducing new regulations, revising existing ones and establishing the infrastructure for autonomous cars and UAMs. MOLIT will also organize several committees for public-private cooperation to support the road map’s implementation.
  • Korea seeks to become the third country in the world to commercialize level 3 vehicle autonomy by the end of 2022 and the first to ever commercialize UAM. From there, Korea plans to achieve the commercialization of level 4 autonomous vehicles by 2027.

Implications

  • The road map is a windfall for semiconductor, telecommunications, cloud computing, artificial intelligence (AI) and other cutting-edge technology businesses. Clients should expect many new investment opportunities as Korea looks to meet the plan’s ambitious goals to transform the country’s transportation industry.
  • To introduce new laws or pass revisions of existing ones in the National Assembly, MOLIT and President Yoon Suk-yeol’s People Power Party need the cooperation and support of the main opposition Democratic Party, which holds the absolute majority and controls the legislature. The ministry is actively seeking the Democratic Party’s support.

We will continue to keep you updated on developments in Korea as they occur. If you have any comments or questions, please contact BGA Managing Director B.J. Kim at bjkim@bowergroupasia.com.

A small ginko leaf

Managing Director

B.J. supports BGA clients on the ground in Korea, advising them on stakeholder engagement and larger government affairs and public policy matters in Seoul. A former Korean diplomat, B.J. has advised international firms on political-economic and policy-regulatory affairs since 2003, offering analytical and advisory services on legislative, regulatory and political issues. He also has offered companies hands-on support in their engagement in Korea.  Prior to his career in consulting, B.J. was a diplomat serving two of Korea’s trade ministers as policy counselor and special assistant, developing international economic policies and public communications strategies on export and investment promotion and working ... Read More