Focusing on Buses Over Taxis... Widening the Autonomous Driving Technology Gap [Losing Ground to China in Autonomous Driving]

The United States and China, both regarded as leading countries in autonomous driving, are focusing more on taxis than buses as their primary autonomous driving models. In contrast, autonomous buses are being introduced nationwide across South Korea. However, some experts point out that this difference is contributing to a widening technological gap. Since buses operate along fixed routes, there are fewer variables to consider compared to taxis, making technical implementation relatively easier.

Inside Dongjak A01. The operator (safety officer) is seated in the driver's seat, and a camera screen showing the steering wheel is located at the top of the bus. The vertically oriented screen on the left displays the front camera, driving route, and surrounding objects, while the screen on the right plays news from Dongjak District Office and public information content. Photo by Jeon Youngju

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◇The Inevitable Choice of Autonomous Buses= "Isn't it natural to introduce autonomous vehicles first in areas with the greatest social need?" Hyun Youngjin, CEO of the autonomous driving technology company SUM, which developed South Korea's first autonomous village bus 'Dongjak A01', explained on the 26th that this is the main reason why autonomous buses are being introduced before robotaxis. He said, "The bus driver workforce is aging rapidly, and most young people tend to avoid this job," adding, "Autonomous buses are different from robotaxis in that they can also help address social issues."

However, looking deeper, the choice of buses also aligns with the interests of startups. Autonomous buses are advantageous for generating initial revenue in the early stages of business.

The biggest reason is that the initial investment cost is lower than for robotaxis. To implement autonomous taxis, detailed maps of the relevant areas are essential. The funding required to build such maps is vastly different. According to a domestic autonomous driving company, it costs 25 million won to establish three bus routes. In contrast, because the area that needs to be mapped for taxis is much larger, the cost rises to 2.5 billion won.

Attracting investment is also difficult. There are concerns that, as the robotaxi business expands in the future, the taxi industry will strongly oppose it out of fear that robots will replace their jobs, which makes the business outlook bleak. The CEO of an autonomous driving company, who requested anonymity, said, "Whenever we go through face-to-face evaluations to attract investment or receive government support, we are always asked, 'How will you deal with opposition from the taxi industry?'" He added, "It has been less than six months since the government or local governments even began to use the term 'robotaxi' in earnest." Furthermore, since the Korean venture investment market is only about one-tenth the size of that in the United States or China, investors are even more cautious about investing in autonomous driving.

Because it is difficult to attract investment, companies rely on local government budgets. They accept the models preferred by local governments and reduce their burden for research and development costs. A representative from a related company said, "While the perception of robotaxis is very negative, buses are seen as having public value, so the situation is better." Local governments are introducing autonomous buses to improve transportation convenience and are actively reaching out to the industry. In Dongbaek District, Yongin, Gyeonggi Province, two autonomous buses are scheduled to run between apartment complexes and a large hospital. An industry insider said, "If you want more citizens to use the service, you ultimately have no choice but to choose buses."

Autonomous village bus Dongjak A01 running back and forth between Soongsil University main gate and Chung-Ang University back gate in Dongjak-gu, Seoul. Photo by Youngju Jeon

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◇Expansion of Autonomous Buses= South Korean companies are also building their own technological capabilities in the field of autonomous buses. On a recent ride aboard the autonomous village bus in Dongjak-gu, Seoul, the braking technology, a key element of the autonomous driving system, was demonstrated. For vehicles with more than six seats, the vehicle body is heavy, making electric control impossible; therefore, separate power sources such as pneumatic (air pressure) or hydraulic (oil pressure) systems are required. A representative from SUM stated, "We possess technology that enables electronic control of both pneumatic and hydraulic systems."

Because of the larger vehicle size, additional systems are needed to recognize driving information. The Dongjak Village Bus A01, which began operation at the end of June, was converted from a Hyundai County Electric bus and equipped with Velodyne lidar, high-precision GPS, ultrasonic sensors, and cameras. Inside the bus, two vertically oriented screens are installed on the left and right sides. The left screen visualizes the driving route and surrounding objects recognized by the autonomous system, along with the front camera. Real-time information such as traffic lights, the bus's speed, and remaining stops can also be checked.

The introduction of autonomous buses by local governments is spreading. In Seoul, the autonomous bus 'Cheongwadae A01', which runs between Gyeongbokgung Palace and the Blue House, began operation in December 2022. As early as the end of next month, South Korea's first autonomous bus without a driver's seat is expected to run along Cheonggyecheon. In Busan, autonomous bus service will begin in the Osiria Tourism Complex area starting next month.

Seongsil University and Chung-Ang University area in Dongjak-gu, Seoul, designated as an autonomous driving pilot zone. Photo by Yeongju Jeon

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