"Struggling to Attract Investment"...K-Autonomous Driving Companies Seek Their Own Solutions [Autonomous Driving Market Surrendered to China]

Domestic autonomous driving companies are also facing significant challenges in securing funding. Since it is difficult for these companies to attract large-scale investments from the capital market, they are barely managing their operations by creating business models that can generate their own revenue and reinvesting this revenue into research and development (R&D).

According to industry sources on August 27, the cumulative investment in Waymo, the global leader in autonomous driving operated by Google, has reached $11 billion (15 trillion won). Motional, the U.S. autonomous driving company invested in by Hyundai Motor Group, has attracted $5 billion. Pony.ai, a Chinese company currently conducting tests in Korea, has secured at least $1.7 billion in investments. In contrast, Autonomous A2Z, which has attracted the most investment among domestic companies, has only secured a cumulative investment of $60 million (82 billion won). This is less than 1% of the investment received by Waymo, the industry leader.

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It is no exaggeration to say that the key to success in autonomous driving lies in having enough financial resources to endure until the technology is fully developed. However, Korea's capital market is smaller than those of the United States and China, and there is less interest in and acceptance of new technologies. This means that even with technological capabilities, it is difficult to attract large-scale funding in the domestic market.

Domestic companies are devising their own solutions by winning government projects or establishing independent revenue streams to reinvest in the development of autonomous driving technology. SWM, for example, uses the funds earned from supplying software for vehicle navigation systems to automakers to support its robotaxi business.

Another method is to secure revenue from government service projects such as autonomous village buses or shuttles to sustain their operations. SUM is currently operating the Cheong Wa Dae shuttle bus in Seoul, the Dongjak-gu autonomous village bus, as well as late-night and early-morning autonomous companion bus services. In the mountainous areas of Gangneung, where access to public transportation is limited, SUM began operating the autonomous "Masil Bus" in July.

There are also companies that secure revenue by supplying software to domestic automakers or defense companies and use this as a foundation to develop autonomous driving technology. Aceworks develops software verification solutions for electric vehicle control and battery management systems (BMS), which it supplies to automakers. Recently, the company has also been supplying control system software for tank engines produced by major domestic defense companies, thereby ensuring the sustainability of its business through these contracts.

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