"Korea Needs Bold Infrastructure and Commercialization Support to Popularize Robotaxis"

As robotaxis (autonomous taxis) are rapidly expanding in the United States, China, and other countries, there is growing analysis that the domestic industry remains in the technology verification stage and requires bold support strategies.

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On April 29, Oh Yoojin, a research fellow at Hana Financial Management Research Institute, stated, "As robotaxis move beyond the stage of commercial validation and enter a period of global expansion, the gap between leading companies that have secured an early market presence and latecomers may widen even more quickly." Oh added, "To popularize robotaxis in Korea, there is a need for an aggressive catch-up strategy in areas such as infrastructure and commercialization support. Furthermore, a social consensus must be reached, including measures for coexistence with existing stakeholders."

Robotaxi service areas are expanding, mainly in the United States and China. After pilot operation phases from 2020 to 2023, some major cities in the United States and China began commercial services in 2024. For example, the U.S. autonomous driving technology company Waymo had commercial service in only one area from 2020 to 2023, but this is expected to rise to two areas in 2024, four in 2025, and ten in 2026. Currently, robotaxi services are actively operating in key U.S. cities such as San Francisco, Los Angeles, Phoenix, and Austin, as well as in major Chinese cities like Wuhan, Beijing, Guangzhou, and Shenzhen.

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Looking at autonomous driving companies by country, Waymo is showing strong growth in the United States. Waymo's weekly usage surged from 10,000 rides in May 2023 to 500,000 rides in March this year, with a goal of reaching 1 million rides within the year. Waymo also plans to expand its service to 19 cities in the United States and overseas regions such as London and Tokyo.

Tesla began its first robotaxi pilot service using Model Y in Austin, Texas, in June last year and has been conducting limited unmanned operations on some routes in Austin since January this year. As of last month, approximately 500 Tesla robotaxis were in operation, up by over 300 units compared to the end of last year, but still trailing behind Waymo, which operates more than 3,000 vehicles.

In China, the three companies Baidu's autonomous driving unit Apollo Go, WeRide, and Pony.ai have moved beyond technology verification and entered the profitability stage. These three companies, relying on policy support from the Chinese government in areas such as roads, communications, and regulations, began services in cities like Wuhan, Shenzhen, and Beijing from 2021 to 2022.

Currently, all three companies operate more than 1,000 robotaxi vehicles, with Baidu leading in terms of service scale and operational data. Baidu announced that by the end of 2024, it had reached breakeven at the individual vehicle level in Wuhan, while Pony.ai reportedly posted monthly operating profits per vehicle in Guangzhou and Shenzhen. WeRide is showing the most aggressive overseas expansion among the three, having secured autonomous driving permits in eight countries.

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By comparison, the technological level of domestic robotaxis remains relatively low. The number of demonstration areas increased from six in 2020 to 55 last year, but the actual cumulative mileage is only one-tenth that of global leading companies. Researcher Oh explained, "Korean autonomous driving technology is only at 89-90% of the U.S. level, and unlike the U.S. and China, where big tech companies are leading, development in Korea is centered around startups, resulting in relatively slower progress."

The government has been working to close the autonomous driving technology gap by designating the entire city of Gwangju as a demonstration zone starting this year. Approximately 200 autonomous vehicles are planned to be deployed for demonstration from the second half of the year. Hyundai Motor was selected as the vehicle and transport platform operator, and Samsung Fire & Marine Insurance as the insurer. In addition, the government announced a 'regulatory sandbox' policy that allows pre-approval followed by post-regulation. From this month, Gwangju will be operated as a mega sandbox for autonomous driving.

Major domestic autonomous driving companies include technology startups such as Autonomous a2z, RideFlux, SWM, and SUM, as well as Hyundai Motor (including its subsidiaries 42dot and Motional), a finished car manufacturer, and Kakao Mobility, a mobility platform operator. Autonomous a2z ranked seventh in the global autonomous driving technology evaluation by Guidehouse, making it the first Korean company to enter the global top 10.

However, with Google securing high-definition maps essential for robotaxi operations, Waymo's entry into Korea is becoming more likely. Pony.ai and Baidu are also opening up possibilities for entering the Korean market, which is expected to accelerate competition for commercialization in Korea.

In response, Hana Financial Management Research Institute recommended accelerating the commercialization of domestic robotaxis based on the Gwangju demonstration city project. Oh stated, "The Gwangju project creates an environment similar to global leading cities, providing opportunities to learn from various edge cases technologically and verify basic business models commercially." He added, "Based on the related data, Korea should expand into key markets such as Seoul in the future and work to address business weaknesses."

Oh also emphasized the need to establish coexistence measures with existing stakeholders for the popularization of robotaxis. He noted, "It is necessary to have a process of agreement among service providers to mitigate concerns about unemployment in the existing taxi industry and potential asset losses such as taxi licenses." He went on to say, "From the demand side, standards must be established for handling safety incidents and clarifying liability in order to build user trust in the service."

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