[Comprehensive] SKT and Hanwha Dream Team Leading 'Flying Car'... UAM Commercialization in 2025

[Asia Economy Reporter Seulgina Jo] SK Telecom has formed the 'K-UAM (Urban Air Mobility) Dream Team' to lead the era of 'Flying Cars.' The telecommunications company is officially entering the 'future mobility war' that connects and expands land transportation to aerial routes. Hanwha Systems, which possesses the top domestic research and development (R&D) capabilities in aircraft development, Korea Airports Corporation, which will build infrastructure linking land transportation, and the Korea Transport Institute, which leads related research, are ultra-cooperation partners. The goal is to introduce a commercialized service that realizes the 'dream mobility' by 2025.

◆"Dream Mobility Is Coming" Ultra-Cooperation Among Core Domestic UAM Stakeholders

According to SK Telecom on the 28th, the company signed a memorandum of understanding (MOU) for the commercialization of UAM (Urban Air Mobility) with Korea Airports Corporation, Hanwha Systems, and the Korea Transport Institute at Seoul Gimpo Airport the previous afternoon. These four companies are key members of the government-led UAM public-private consultative body ‘UAM Team Korea’ and represent the service, infrastructure, aircraft, and research sectors respectively.

UAM, commonly described as flying cars, is a new transportation service that enables urban mobility without runways by utilizing small aircraft (e-VTOL) capable of vertical takeoff and landing. It can reduce travel time from one hour by car to about 20 minutes and can be linked with existing land transportation, making it a promising solution to severe urban traffic congestion. In particular, it is evaluated as an innovative project that will transform the mobility paradigm, and recently, major automakers such as Hyundai Motor Company and General Motors (GM) have announced their entry into this field.

The collaboration involving SK Telecom is expected to play the role of a dream team leading the successful commercialization of ‘K-UAM.’ SK Telecom judged that ultra-cooperation with the top domestic operators equipped with capabilities is essential, as UAM requires comprehensive business capabilities ranging from aircraft design to infrastructure construction and service provision.

From the left in the photo: Kim Yeon-cheol, CEO of Hanwha Systems; Son Chang-wan, President of Korea Airports Corporation; Yoo Young-sang, Head of MNO Business at SK Telecom; Yoo Jung-bok, Deputy Director of Management at Korea Transport Institute.

Within the dream team, SK Telecom is responsible for demonstrating and building the aeronautical traffic communication network model. It will also develop a mobility platform for UAM and establish a foundation to integrally provide transfer services with land transportation.

Korea Airports Corporation will be in charge of constructing UAM takeoff and landing sites and traffic management based on its accumulated expertise. It is also considering building the world’s first Verti-hub (a higher concept of urban air mobility terminal) at Gimpo Airport. Hanwha Systems, which has achieved top-level R&D results domestically through joint development of e-VTOL with the U.S. company Overair, will accelerate the development of UAM aircraft and navigation, control, and ICT solutions. The Korea Transport Institute will provide strategic direction for the dream team based on research such as service demand forecasting and public acceptance.

They aim for commercialization by 2025. In the long term, it is expected to reduce social costs caused by urban traffic congestion in the metropolitan area and contribute to establishing an eco-friendly transportation system with zero greenhouse gas emissions. Yoo Sang-young, head of SK Telecom’s MNO business, emphasized, "Through collaboration with capable operators, we will realize the K-UAM roadmap that our country aims for and showcase world-leading mobility infrastructure."

UAM Service Rendering Promoted by SK Telecom, Korea Airports Corporation, Hanwha Systems, and Korea Transport Institute

◆731 Trillion Won Market by 2040... Global Competition Accelerates

Global competition surrounding the future innovative business of UAM is intensifying. Led by the United States, the United Kingdom, France, Germany, Canada, and China are rushing to plan and promote related demonstration projects. At the world’s largest electronics and IT exhibition ‘CES 2021’ held earlier this year, some automakers presented UAM as a future direction, making it a hot topic.

According to the Ministry of Land, Infrastructure and Transport, the UAM-related industry is expected to form a market worth 731 trillion won worldwide by 2040. The Samjong KPMG Economic Research Institute predicted in its report ‘Mobility Revolution Unfolding in the Sky, Urban Air Mobility’ that UAM passengers will rapidly increase starting in 2030. There is also analysis that UAM will lead to a paradigm shift that changes lifestyles beyond being a simple means of transportation. However, challenges remain, including aircraft development, establishing traffic management systems, infrastructure construction, and setting standards until commercialization.

Since last year, the Korean government has been promoting a Korean-style UAM roadmap centered on ‘UAM Team Korea.’ According to the roadmap, flight demonstrations are planned from 2022 to 2024, commercialization will begin in 2025, and full-scale commercialization is targeted for 2030. The plan is to operate 10 routes by 2030 and 100 routes by 2035.