The Republic of Korea announced three key strategies to accelerate the development of its car industry into the future. The country is devising plans to accelerate adoption of eco-friendly vehicles and build systems and infrastructure for autonomous vehicles. It will make a swift transition to an open ecosystem for the cars of the future through private investments totalling KRW60 trillion ($51 billion).
The Korean government wants to see 33% of new cars sold in the domestic market to be eco-friendly by 2030.It also expects Korea’s green car industry to account for 10% of total eco-friendly car sales in the global market by 2030. From 2030, every new car model will be offered in an environmentally friendly version. Such vehicles will be expected to achieve, maintain,and improve on world-class performance.
As part of this effort, a feasibility study has been approved for research and development projects that will receive KRW385.6 billion ($327,76 million) between 2020 and 2026. In the meantime, government subsidies will be restructured to put more emphasis on fuel efficiency, mileage, and other performance standards.
Korea will build a total of 660 hydrogen refueling stations by 2030 and 15,000 electric recharging stationsby 2025. Drivers will be able to access a hydrogen station within 20 minutes of any major city or within 75 kilometres from any expressway by 2030.
Many government policies will help create demand for eco-friendly cars. The government’s programme of subsidies will continue until efficient economies of scale are reached, and various measures will encourage the use of green technology in buses, taxis, trucks, and self-driving cars. Subsidy policies will be reassessed in 2022, following an examination of the industry’s output and competitiveness.
In 2027, Korea wants to roll out the world’s first commercial fully autonomous vehicles, achieving what is also known as Level 4 autonomy. This goal will require necessary infrastructure (communications facilities, high precision maps, traffic control, and major road modifications) and systems (performance testing, insurance services, and drivers’ obligations) to be fully implemented by 2024. With regard to technology, a feasibility study is underway to examine investments totalling KRW1.7 trillion ($$1.45 billion) in projects for developing key parts for self-driving cars between 2021 and 2027.
Korea will promote private-led and public-led mobility services.The former are driverless shuttles, taxis, and truck platooning. The latter will include mobility aids, public transportation optimisation, urgent road restoration, and self-driving police patrols. The country will push forward with developing new means of transport like flying cars. The advancement of technology and legal systems related to flying cars will lead to pilot projects in 2025.
Korea wants to see the ratio of electric parts producers reach 20% among all domestic parts companies by 2030. Parts manufacturers will receive more than KRW2 trillion ($$1.7 billion) in support for capital expenditure and liquidity. Their workforce will gain some 2,000 newly trained researchers and field workers. And they will cooperate with foreign automakers to undertake joint technology development projects.
The introduction of an open ecosystem will boost cooperation between large companies and small and medium-sized enterprises in areas such as hydrogen buses, self-driving shuttles, and microchip development for automobiles.Meanwhile, start-ups will find more support and opportunities in this field as well.
In addition, efforts will be made to increase the share of local supply of necessary materials and parts for the cars of the future from 50% to 80%.