The Bank of Korea: "Automotive Industry Accelerates Big Blur... Future Cars and New Logistics Industry Up"

The Bank of Korea Publishes Report on the Ripple Effects of Accelerated Big Blur on the 14th

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] As the 'Big Blur' phenomenon, where boundaries between industries disappear, accelerates, there is a call for proactive policy responses. It is analyzed that new industries such as future car-related industries and new logistics industries are emerging as key industries due to this restructuring of the industrial structure.

On the 14th, Jeong Seonyeong, Associate Research Fellow at the Macroeconomic Research Department of the Bank of Korea Economic Research Institute, and researcher Lee Solbin stated in the 'BOK Issue Note - The Impact of Accelerating Big Blur: Focusing on the Automobile Industry' that "Innovation is accelerating through the Big Blur phenomenon where boundaries between industries disappear, and changes over the next 10 years will be much more dynamic."

The automobile industry, which has shown stable growth for over 100 years, is a representative industry where the Big Blur phenomenon appears. In less than 10 years, it has been rapidly moving to new equilibrium points such as eco-friendliness, intelligence, and service orientation.

The paradigm of the automobile industry is changing significantly into ▲Electric Vehicles (hardware) ▲Autonomous Driving (software) ▲Shared Cars (usage method - consumer platform) ▲Connected Cars (hyper-connected intelligent space).

The automobile parts market is being reorganized around future cars, and the value chain of the automobile industry is shifting to a horizontal form. The Bank of Korea analyzed that the growth of existing internal combustion engine-related industries such as steel and petroleum is declining, while new industries such as future car-related industries and new logistics industries are emerging as key industries.

It also predicted the emergence of new forms of passenger transport services such as mobility support services for the disabled and elderly, real-time autonomous public transportation services, and autonomous shared car services.

With the spread of electric vehicles, inconveniences that had to be endured under the existing paradigm, such as traffic congestion and environmental pollution, have been improved, greatly enhancing safety, efficiency, and eco-friendliness related to mobility.

Associate Research Fellow Jeong said, "Unlike the past internal combustion engine era where the market was formed based on a supplier-centered, standardized mass production system, the future car era will change to be user-centered, service-centered, and diversity-centered, greatly affecting related industries and systems." He added, "Policy authorities need to actively work on creating a Big Blur ecosystem to maximize synergy effects through convergence between technologies and industries to preoccupy the market, and to prepare related systems and policies to secure social acceptance of changes early."

In the mid to long term, it was advised to strengthen research on domestic and international economic environment and structural changes to respond quickly to rapid changes. Associate Research Fellow Jeong emphasized, "It is necessary to proactively enhance research capabilities to detect policy environment changes early, and to conduct research on policy response measures to minimize latent vulnerabilities and risks arising from rapid economic and social changes along with the positive aspects of digital innovation."

He also predicted, "As services are advanced through cooperation and competition among companies, the market size will rapidly expand. The Big Blur phenomenon will also affect other industries and economic and social systems."