[Tesla Leads, Hyundai Strikes Back] Autonomous Driving Accelerates... Korean Laws and Regulations Struggle to Keep Up

Regulatory Gaps in Korea Remain Despite Technological Progress


Insurance System Needs Overhaul to Clarify Liability

While the global automotive industry is accelerating the advancement of autonomous driving technology, there are concerns that related laws and regulations in Korea, such as those on insurance, remain unchanged.

Level 4 Autonomous Vehicle Based on Ioniq 5. Hyundai Motor Group

According to industry sources on the 15th, advanced driving assistance technologies that minimize driver intervention have recently been introduced in Korea. Tesla is providing its supervised Full Self-Driving (FSD) service on some U.S.-made vehicles equipped with its latest Hardware 4 (HW4). FSD Lite functionality is also available on U.S.-made vehicles equipped with Hardware 3 (HW3).

Korea GM has also adopted its Super Cruise technology, which allows hands-free driving, in some of its premium models. The government is preparing regulations and infrastructure with the goal of commercializing Level 4 autonomous vehicles by 2027. Pilot operation zones for autonomous driving and the establishment of autonomous driving demonstration cities are also underway nationwide.

However, legal certification standards to support these advancements remain insufficient. In the event of an accident while using autonomous driving functions, there are still no clear standards as to whether the driver or the manufacturer is held responsible.

The insurance system for autonomous vehicles, which is directly linked to accident liability, is also lacking. Autonomous driving technology is developing toward systems taking full control of driving and reducing human intervention. However, current laws and insurance frameworks are structured so that primary liability for accidents falls on the driver.

In Korea, there are virtually no dedicated autonomous vehicle insurance products available for the general public. Only test-drive or business-use products are operated on a limited basis, such as those applied to the autonomous driving demonstration project in Gwangju. Even if a collision is caused by a fault or malfunction in the driving assistance system, under current law, primary civil or criminal liability—such as failure to keep one's eyes on the road—still falls on the driver. It is nearly impossible for consumers to directly prove technical defects on the manufacturer's part.

Germany, Japan, and the United Kingdom hold drivers liable for Level 3 autonomous driving accidents. For Level 4, regulations have been put in place so that responsibility can be assigned to manufacturers and autonomous driving service operators. Experts widely agree that it is urgent to develop legal grounds clarifying the division of responsibility between systems (manufacturers) and drivers, as well as to create dedicated insurance products for autonomous vehicles.

Chun Jiyeon, a research fellow at the Korea Insurance Research Institute, stated, "In the case of autonomous vehicle accidents, a thorough examination of the scope of compensation and liability structure is needed due to the diversification of responsible parties and the complexity of accident causes. In order to build a stable compensation system and gain consumer trust as autonomous vehicles become commercialized, the insurance system for autonomous vehicles should be proactively improved."

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