Chilgok-gun Aims to Become Korea’s First Low-Speed Electric Vehicle Industry Hub

Investing 19.7 Billion Won to Lead the Future Mobility Market
Designated as a Global Innovation Regulatory Free Zone
Building an Industry Ecosystem from Policy Development to Global Expansion

The low-speed electric vehicle (LSV) industry, which is gaining attention as a next-generation mode of transportation in the tourism, logistics, and welfare sectors, is set to take off in Chilgok-gun, North Gyeongsang Province.

Chilgok-gun announced that it has been designated as a Global Innovation Regulatory Free Zone by the Ministry of SMEs and Startups, and will invest a total of 19.7 billion won, including 11.5 billion won in national government funds, by 2030 to build the nation’s first LSV industry ecosystem.

The core of the initiative goes beyond simple vehicle development, focusing on the cultivation of the future mobility industry through demonstration and regulatory improvement, nurturing companies, and advancing into overseas markets.

An image of a low-speed electric vehicle (LSV) generated using AI. This is an example to aid in understanding the article and may differ from the actual developed vehicle.
[Photo by Chilgok-gun]

LSVs are eco-friendly electric vehicles that operate at speeds of up to 40 km/h.

While overseas markets in tourism destinations, industrial complexes, and the logistics and welfare sectors are rapidly expanding, the industry in Korea has been delayed due to a lack of safety standards and certification systems.

Within this special regulatory zone, demonstration vehicles will be assigned vehicle identification numbers and allowed to operate on designated roads.

This approach will verify safety and performance, and based on the accumulated data, efforts will also be made to establish relevant laws, regulations, and safety standards.

The LSVs planned by Chilgok-gun will feature a modular design based on a common platform, enabling the production of vehicles for various purposes such as tourism, camping, short-distance travel, mobility support for people with disabilities, and logistics.

This allows for reduced development costs and the rapid supply of customized vehicles tailored to market demand, making it a new model for the future mobility market.

In the initial phase of the project, three models—camping vehicles, six-seater short-distance vehicles, and welfare vehicles for people with disabilities and the elderly—will be developed first and tested on public roads.

The strong manufacturing base in Chilgok underpins its selection as a special zone. Its well-established industrial ecosystem, including an automotive parts and special vehicle cluster, advanced agricultural machinery demonstration lab-factory, and agri-tech convergence demonstration platform, was highly rated for enabling everything from design and production to testing and evaluation.

Currently, four external companies have decided to relocate to Chilgok to participate in the special zone, and a total of 36 companies and institutions, including local firms, will take part in R&D, prototype production, safety verification, overseas testbed demonstrations, and commercialization. Efforts will also be made to develop products that comply with the U.S. low-speed vehicle safety standard (FMVSS 500), laying the groundwork for entry into global markets.

Chilgok-gun Mayor Kim Jae-wook stated, “LSVs are a future growth industry that will lead the tourism, logistics, and welfare sectors. Leveraging the regulatory free zone, we will foster Chilgok as the core hub of Korea’s low-speed electric vehicle industry.”

This special zone, which aims not only to lift regulations but also to develop the industry, companies, and regulatory systems together, is expected to serve as a significant turning point for Chilgok as it rises as a new growth axis in the future mobility industry.

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