Seoul, Busan, Jeju Battle for 1800 Trillion 'Sky Taxi' Market... Catch It Now

Initial Ecosystem Setup Including Infrastructure
Intense Competition Among 3 Major Telecom Companies
Close Watch on Local Governments in Seoul, Busan, Jeju
Fierce Battle Expected in Yongsan and Other Areas

[Asia Economy Reporter Cha Min-young] From Seoul to Busan and Jeju, fierce competition is underway nationwide for urban air mobility (UAM), known as the "flying taxi." Interest among local governments is high regarding this new transportation system connecting the sky and the ground, and the three major mobile carriers are also putting their all into creating the initial UAM ecosystem, eyeing a new market expected to reach 1,800 trillion won by 2040.

LGU+ and Busan City Target Commercialization by 2026

LG Uplus and Busan City announced on the 27th that they have signed a memorandum of understanding (MOU) to commercialize UAM within Busan city and foster the ecosystem, aiming for "commercialization by 2026." The MOU includes participation from the LG Uplus consortium, Busan City, Naval Operations Command, the 53rd Army Division, Korea Maritime and Ocean University, Busan Facilities Corporation, and Busan Technopark. The plan also envisions making Busan the number one UAM city through demonstration projects utilizing Busan's marine infrastructure.

The main objectives are to develop technology for commercializing UAM traffic management systems and communication infrastructure, and to conduct research on vertiport locations based on mobility data, passenger and logistics services, and UAM operation policies. Plans include building vertiports connecting key Busan locations such as Busan Station, Igidae, and Dongbaek Island, as well as creating vertistops (UAM terminals) linking the city center.

Busan is also where SK Telecom, among the three major mobile carriers, first introduced UAM. SK Telecom set up the only exhibition booth among UAM businesses at the Busan International Motor Show, which opened on the 15th. They displayed a model of an electric vertical takeoff and landing aircraft (eVTOL) set against the future BEXCO in 2030, allowing the public to board and experience it firsthand. Ha Min-yong, Chief Development Officer (CDO) of SK Telecom, said, "Interest from local governments such as Jeju Island is also very high besides Busan," adding, "Although specific business moves have not been decided, various proposals are coming in."

Mayor Oh Se-hoon: "Yongsan Will Become the UAM Hub"

Seoul City has also emerged as the main stage for competition among the three mobile carriers by announcing the operation of a pilot route between Gimpo Airport and Yongsan International Business District in line with the commercialization of aircraft in 2025. On the 26th, Seoul Mayor Oh Se-hoon announced the development plan for the Yongsan maintenance depot, stating, "Yongsan will become the center of transportation." The plan involves passengers arriving at Incheon or Gimpo Airport, taking UAM to Yongsan, and then transferring to GTX or the subway. If the plan to connect major Seoul hubs such as Jamsil and Suseo via UAM routes materializes, the transportation map of Seoul is expected to be completely transformed.

Jeju is considered suitable for early UAM commercialization due to its low population density and relatively free airspace. In October 2021, Jeju Island signed an MOU with the Jeju International Free City Development Center (JDC) and Kenko Aerospace for UAM business cooperation. Gangwon Province, with its mountainous terrain, is also a region with high demand for special-purpose UAMs to respond to tourism, wildfires, disasters, and medical emergencies.

However, some experts say it is premature to focus too closely on local government movements. This is because variables are likely to increase depending on the results of the Korea-style UAM Grand Challenge (K-UAM GC), led by the Ministry of Land, Infrastructure and Transport, to be announced at the end of this year. The Grand Challenge will establish UAM operation standards and commercialization foundations in three phases, so local governments are expected to follow suit. A telecommunications industry official said, "While interest among local governments is indeed high, it is currently difficult to predict future situations, so there is a cautious aspect," adding, "Local governments are likely to test various individual consortiums competitively and only later formalize contracts through bidding."

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