[KR-US-China Robotaxi War] ⑧Green Light for K-Autonomous Driving... 86% of Budget Goes to Vehicle Purchases, Data Integration Still a Challenge

Hyundai Selected as SDV and Platform Provider
Insurance and Safety System Established with Samsung Fire & Marine Insurance Participation
Remaining Challenges: Budget Allocation for Operators, Data Integration

Editor's NoteDriverless taxis, or "robotaxis," have emerged as a central pillar of future mobility. Now, the competition has moved beyond simple technological rivalry to a "data supremacy war," where the focus is on who can accumulate more driving data and generate tangible profits. Backed by bold government support, China is amassing massive amounts of data, while the United States is surging ahead with its unrivaled AI technology. In contrast, South Korea, despite its world-class manufacturing capabilities, is unable to accelerate commercialization due to various regulations and institutional shortcomings. The Asia Business Daily sheds light on the reality of driverless operations in Beijing, China and Las Vegas, USA, the data strategies of American and Chinese big tech firms, and the current status of autonomous driving in Korea. Through this three-part series, we examine the global robotaxi battleground and explore survival strategies for our industry.

Hyundai Motor Company is propelling the commercialization of the project by participating as a key company providing vehicles and ride-hailing services for the Gwangju autonomous driving demonstration project, which will begin in the second half of this year. The Ministry of Land, Infrastructure and Transport aims to use this project, which will see 200 autonomous vehicles driving throughout Gwangju, to accelerate the collection of large-scale, city-level autonomous driving data and to establish technical standards.

200 IONIQ 5-Based Level 4 Vehicles Deployed... SDV Transition Accelerates

According to industry sources on March 18, the 200 vehicles to be used in the Gwangju demonstration project have been confirmed as autonomous vehicles based on Hyundai's IONIQ 5. While the base platform is the IONIQ 5, Hyundai will supply exclusive development vehicles equipped with redundant key systems such as steering, control, and sensors to enable Level 4 driverless operation.

Currently, most autonomous vehicles operating in Korea have been modified using a reverse-engineering approach on mass-produced vehicles. However, Hyundai is providing a software-defined vehicle (SDV) specifically tailored for the Gwangju project. Unlike previous modification-based demonstrations, this project is seen as a turning point for domestic autonomous driving demonstrations, as it involves deploying a platform designed from the outset for autonomy.

While about three software (SW) companies are expected to be selected to participate in the actual operation following evaluations, there are some concerns within the industry. Of the project budget of 55.8 billion won allocated to participating companies, 48 billion won (86%) is focused on the purchase of autonomous vehicles, raising complaints that there may be insufficient funding for the vehicle modification and operation costs of the software companies. As a result, it is expected that further support programs for operating companies or the relaxation of regulations such as safety personnel placement requirements will be discussed to directly and indirectly alleviate cost burdens during the next phases of the project.

Challenges Remain for Data Standardization and Insurance Systems

Data standardization remains an ongoing challenge. A key strength of the Gwangju autonomous driving demonstration project is that 200 vehicles with the same performance will operate simultaneously in one area, enabling the accumulation of uniform and extensive data. The ability to build a city-scale autonomous driving dataset through the operation of a large number of vehicles in the same environment is one of the project’s core objectives. However, since the operation will be divided among approximately three companies, there are ongoing discussions about how to integrate data generated from different systems.

This project also includes Samsung Fire & Marine Insurance as the dedicated insurance provider, enabling a solution for accident compensation issues that have been the biggest obstacle for autonomous driving demonstrations. Samsung Fire & Marine Insurance has set a maximum coverage limit of 10 billion won per accident and a total annual compensation cap of 30 billion won, creating an environment where technology companies can fully focus on the demonstrations without concern.

Park Junhyeong, Director-General of the Mobility and Automobiles Bureau at the Ministry of Land, Infrastructure and Transport, stated, "We will strive to establish an autonomous driving industry ecosystem that integrates vehicles, systems, services, and insurance, aiming to become the flagship K-autonomous driving cooperation model for the nation."

This content was produced with the assistance of AI translation services.