Ministry of Industry Establishes 'Future Vehicle Division'... Accelerating Price Reduction and World's First Commercialization of Level 4 Autonomous Vehicles

2025 Car Prices Cut by 10 Million KRW
World's First Level 4 Commercialization in 2027
Hyundai to Launch Flying Car in 2028
Public-Private Partnership Accelerates 'Electric Vehicle Era'
Overlaps with 2030 Goal of Becoming a Top 4 Manufacturing Power
Government: "Success in Future Cars, Semiconductors, and Batteries Essential for Manufacturing Renaissance"

President Moon Jae-in attended the 'Future Car Strategy Talk Show' held on the morning of the 30th at Hyundai Motor Company's Ulsan plant, and then test-drove Hyundai Mobis's autonomous driving-based shared mobility concept car, the 'M.Vision S,' together with Hyundai Motor Group Chairman Chung Eui-sun. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] The Ministry of Trade, Industry and Energy is accelerating efforts to establish the Future Automobile Industry Division (Future Car Division) to achieve goals such as reducing electric vehicle prices by 10 million KRW by 2025 and commercializing Level 4 fully autonomous driving on major national roads by 2027, the world's first.

Alongside Hyundai Motor Group's personal flying vehicle (commonly known as a flying car) scheduled for release in 2028, the public and private sectors are moving swiftly to usher in the 'electric vehicle era.'

On the 3rd, the Ministry of Trade, Industry and Energy and the Ministry of the Interior and Safety approved the 'Partial Amendment to the Organization Regulations of the Ministry of Trade, Industry and Energy and Its Affiliated Agencies,' which includes the establishment of the Future Car Division, at the Cabinet meeting. The amendment is set to take effect on the 11th.

An official from the Ministry of Trade, Industry and Energy explained, "Until now, future car-related tasks were handled by the Automobile and Aviation Division, but as global market competition intensifies, we judged that a dedicated organization is necessary for more proactive policy implementation, leading to the establishment of the Future Car Division."

One-stop for Commercialization, Distribution, Industry Convergence, and Regulatory Response... Abundant Administrative Support

At Hyundai Motor Company's CES 2020 site. On January 6th (local time), Chung Eui-sun, Vice Chairman of Hyundai Motor Group, explains urban air mobility (UAM) at the Mandalay Bay Hotel in Las Vegas, USA. (Photo by Hyundai Motor Group)

The Future Car Division of the Ministry will focus on technology development, commercialization, convergence with related industries, and global regulatory responses.

They plan to hire a private sector professional as a director between December and January next year.

This move is interpreted as an intention to enhance expertise and innovation while reducing unnecessary regulatory risks.

The Prime Minister's Office stated in the 'Cabinet Meeting Agenda Explanation Materials' that "to strengthen the competitiveness of the future car industry, including autonomous vehicles, the Future Car Division will be established as a temporary organization within the Industrial Policy Office of the Ministry of Trade, Industry and Energy until October 31, 2023."

It added, "Two necessary personnel (one Grade 4, one Grade 5) will be temporarily increased, and some duties under the Industrial Innovation Growth Office of the Ministry will be adjusted."

The Prime Minister's Office also said, "With the amendment of the 'General Rules on the Organization and Staffing of Administrative Agencies,' the limit for autonomous staff increases will be raised from 5% to 7% of the total staff."

This grants administrative discretion to the Future Car Division, similar to the 'negative regulation principle,' which allows all regulations except those absolutely necessary.

Reducing Car Prices by 10 Million KRW and Level 4 Commercialization... Accelerating Policies Driving Korea's Electric Vehicle Future

Explanation of the next-generation HMI, an interconnected system between humans and vehicles that provides safety and convenience tailored to autonomous driving (Level 4 and above) environments and occupant conditions. (Source: Hyundai Mobis)

The Future Car Division of the Ministry is tasked with swiftly implementing major future car development policies, such as the 'Future Car Expansion and Market Preemption Strategy' announced on the 30th of last month.

The government has designated 2022 as the inaugural year for future car popularization, aiming to increase the sales share of electric and hydrogen vehicles to 10% and launch Level 3 (partial autonomous) vehicles.

Furthermore, it plans partial commercialization of Level 4 (fully autonomous) vehicles by 2024, achieve cumulative distribution of 1.33 million electric and hydrogen vehicles and export 530,000 units by 2025, and transition 1,000 parts companies to future cars by 2030.

The government's goal is to establish a society and industrial ecosystem centered on future cars.

Public and Private Sectors Preparing for the Fierce '2030' Battle... The Decisive Period is the Late 2020s

The government has declared its intention to become one of the world's top four manufacturing powers by 2030. The future strategies of Hyundai Motor Company and Samsung Electronics are also aimed at 2030. On the right is Chung Euisun, Chairman of Hyundai Motor Group, and on the left is Lee Jae-yong, Vice Chairman of Samsung Electronics. (Photo by Asia Economy DB)

In recent years, the Ministry has launched significant policies aimed at becoming an advanced industrial nation by 2030.

Policies targeting 2030 include ▲Manufacturing Renaissance (investing 8.4 trillion KRW to foster system semiconductors, future cars, and bio industries) ▲System Semiconductor Vision and Strategy (aiming to become a comprehensive semiconductor powerhouse by 2030) ▲AI Semiconductor Industry Development Strategy (developing AI semiconductors as the second DRAM by 2030).

In the future car sector, the core policies are the 'Future Car Expansion and Market Preemption Strategy' targeting 2025 and the 'Future Car Industry Development Strategy' announced last October. The subtitle '2030 National Roadmap' emphasizes 'Level 4 commercialization by 2027.'

This aligns with Hyundai Motor's plan to launch a flying car in 2028. The flying car is a future strategy Hyundai is promoting in tandem with the government alongside the 'hydrogen economy.'

An official from the Ministry said, "For the 'Manufacturing Renaissance' aiming to enter the world's top four manufacturing nations by 2030 to succeed, it is essential to achieve the government's future car policies, Hyundai's flying car strategy, Samsung Electronics' 'Semiconductor Vision 2030' (becoming the world's No. 1 system semiconductor company by 2030), and maintain the No. 1 global market share in batteries by domestic companies like LG Chem and Samsung SDI."

A government official added, "The future car industry is a core of the Digital New Deal and Green New Deal, and the establishment of the Future Car Division is expected to strengthen efforts to foster the future car industry."

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