[New Wave] The Era of Autonomous Driving Comes to Korea

[Asia Economy] On the 19th of last month, the Ministry of Land, Infrastructure and Transport announced an administrative notice for the revision of the temporary operation permit for autonomous vehicles. According to the revision, services such as autonomous shuttles without driver seats and unmanned delivery robots without passengers will become possible in Korea.

Interest in autonomous vehicles as a new means of transportation in the post-COVID-19 era is rising. Waymo recently launched a fully autonomous taxi service in Phoenix, Arizona, without even a safety operator in the driver's seat. GM Cruise has also received permission from the California Department of Motor Vehicles to test autonomous vehicles without safety operators and is preparing services in major cities such as San Francisco.

The Ministry of Land, Infrastructure and Transport is striving to foster the domestic autonomous driving ecosystem through the temporary operation permit system for autonomous vehicles. So far, 119 vehicles from 41 companies and institutions have obtained temporary operation permits to develop autonomous driving systems and prepare services. However, the current regulations assume that autonomous vehicles have the same form as traditional vehicles and require a driver to be on board. Therefore, new types of vehicles had to undergo a separate special review process, causing inconvenience.

According to the Ministry’s revision, there are three main types of autonomous vehicles eligible for temporary operation permits. The first type is vehicles with a driver’s seat in the same form as traditional vehicles. The government has simplified procedures by easing similar and overlapping permit requirements for these vehicles. From the perspective of companies or institutions, the process of obtaining temporary operation permits is expected to become much easier.

The second type is new forms of autonomous vehicles without a driver’s seat. In Pangyo, Gyeonggi Province, the Gyeonggi Autonomous Driving Center is already operating the driverless autonomous vehicle called the 'Zero Shuttle.' Under the current system, permits for autonomous vehicles without driver seats were granted only in very exceptional cases, and the process took more than five months. However, with this revision, autonomous vehicles without driver seats can, in principle, be permitted to operate without special review.

The third type is autonomous vehicles for cargo, not passengers. These are vehicles for transporting goods without any human onboard. Under the current system, permits could not be obtained, but this revision has opened the way to receive temporary operation permits. In fact, many experts have prioritized the potential of cargo autonomous vehicles over passenger ones. Autonomous cargo vehicles are expected to play an increasingly important role as a new means of contactless unmanned transportation in the COVID-19 era.

Meanwhile, regulations have also been established for autonomous cargo vehicles connected to trailers and autonomous camping cars. If applicants meet certain safety standards, they can obtain temporary operation permits. This opens the possibility for new types of autonomous vehicles to emerge according to market demand. Looking at the history of technology-based services emerging in Korea, technology often advances first, followed by laws and systems catching up. However, this time is different. The law and system are being established first to set the stage, inviting companies confident in their technology and services to enter the field. This is very welcome news for companies that have been developing services while fighting regulations.

Since May of this year, the Act on Promotion and Support of Commercialization of Autonomous Vehicles has been in effect. On the 22nd of last month, the Ministry of Land, Infrastructure and Transport designated six regions?Seoul, Chungbuk, Sejong, Daegu, Gwangju, and Jeju?as pilot zones for autonomous vehicle operation. Whether for passengers or cargo, the era of paid autonomous driving services is officially beginning. It is hoped that autonomous driving will play an important role as a new growth engine to overcome the economic crisis in the COVID-19 era.

Jaeho Lee, Director of the Digital Economy Research Institute, Kakao Mobility