[Square] Opening of the 21st National Assembly and Launch of the Mobility Forum

Jeong Manki, President of the Korea Automobile Manufacturers Association

The launch of research groups in the 21st National Assembly is active. One of the research groups to watch is the Mobility Forum. This forum was launched on a large scale with the participation of about 50 lawmakers from both ruling and opposition parties. Notably, senior lawmakers from both sides serve as co-chairs, and lawmakers responsible for the forum are also jointly appointed by both parties. The number of participating lawmakers from each side is equal as well. This indicates that this field is recognized not as a subject of political conflict but as an area requiring joint response from both parties. The launch of the National Assembly Mobility Forum appears very timely in two respects.

First, the mobility industry has entered a full-fledged innovation phase. In the case of automobile manufacturing, on one hand, the era of internal combustion engine vehicles that lasted for the past century is coming to an end, transitioning into a period where internal combustion engine vehicles and electric vehicles coexist. In major markets, the sales share of electric vehicles is approaching 10% of the total automobile market. On the other hand, information and communication industries such as the Internet of Things (IoT), big data, and artificial intelligence (AI) are merging with the automobile industry. In the United States, there is a forecast that the level 4 fully autonomous vehicle market will open by 2022. Global IT companies such as Tesla, Google, and Apple are entering the automobile market with electric and autonomous vehicles, threatening traditional automobile manufacturers.

The rise of China also deserves attention. Chinese companies, having endured humiliation over the past 28 years while learning technology and experience from Western countries, are preparing for a serious competition with Western automobile companies in the global market based on a vast domestic market and abundant labor force. Chinese companies, which have secured production capacity exceeding 50 million units, judge that sustainable growth is impossible with a domestic market of 25 million units and are turning their eyes to overseas markets, expanding exports. This poses a significant threat to our companies.

The mobility service market is also rapidly being reorganized. Although it has slowed due to the COVID-19 pandemic, companies like Uber and Lyft are expanding their global market presence through vehicle-sharing systems. Cooperation among global heterogeneous companies is expanding, such as the autonomous driving technology collaboration between Volvo Cars and Google Waymo, and the flying car partnership between Hyundai Motor Company and Uber, making the competition to secure the future mobility service market a reality.

In short, the mobility industry is not a mature industry but is showing the early stages of market formation. In this situation, support or intervention to enhance the competitiveness of domestic companies, such as subsidies for electric vehicles and various incentives, is becoming common not only in China but also in Japan, Europe, and the United States, citing environmental reasons.

Second, the importance of the National Assembly in resource allocation has increased. In our case, during the development era, industrial support policies were created and promoted under government leadership. However, recently, the influence of the National Assembly on the industry through legislation and budgeting has been expanding. The impact on the mobility industry is no exception. Not only labor-related laws and environmental bills but also direct legislation related to automobiles is increasing. The 'Tada Prohibition Act,' which caused the shared-use car system to face setbacks with just one piece of legislation, is a typical example. Lawmakers' perspectives on the roles of industry and the public sector greatly influence the mobility industry as well.

In this regard, the launch of the National Assembly Mobility Forum is timely and meaningful. Our National Assembly has evaluated lawmakers based on the number of legislative initiatives. According to a survey last year, the average annual number of legislative initiatives in the 20th National Assembly was about 1,700, while the United States had about 210, Japan about 80, and the United Kingdom only about 40. In advanced countries, lawmakers are evaluated based on the quality of legislation rather than the quantity. Considering that many regulations, including those in the mobility field, are made through legislation, it is hoped that in the 21st National Assembly, legislative activities will be evaluated by the quality of legislation rather than quantity. Good legislation will be the cornerstone of our industrial development.

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