[Robots Are Coming]② Delivery Robots Are Cars?

Robot Companies Trapped by Regulations, Industry Falls Behind Due to Outdated Analog Rules
Mostly Small and Medium Enterprises... Must Fight Regulations While Competing with Global Firms
Strict Regulations and Approval Procedures Cause Missed Launch Timelines

Autonomous delivery robots introduced by Domino's Pizza in the United States. The U.S. is revising related regulations in each state to classify delivery robots as pedestrians rather than vehicles. Photo by Domino's Pizza

[Asia Economy Reporter Kim Heeyoon] “Applying legal regulations designed for pedestrians and automobiles to robots could cause the delivery robot industry to waste more than a decade.”

As rapidly advancing robot technology permeates various aspects of daily life, concerns are growing within related industries that regulations are hindering industrial development. This issue is particularly acute for companies developing delivery robots and medical robots, whose markets have expanded due to COVID-19.

At a regulatory innovation forum held on the 22nd of last month at the Korea Federation of SMEs in Yeouido, Seoul, aimed at revitalizing the autonomous robot industry, claims were made that the Road Traffic Act, which focuses on automobiles and pedestrians, is being applied to delivery robots, creating obstacles to technology commercialization. Lee Sangmin, CEO of delivery robot startup Newbility, stated, “If delivery robots are classified as automobiles rather than pedestrians, access to urban parks is prohibited, causing delivery delays due to detours,” adding, “It is urgent to improve regulations by classifying verified delivery robots like personal mobility devices as pedestrians and allowing their access.”

Newbility, a delivery robot platform, recently launched the autonomous delivery robot 'Newbee'. Photo by Newbility

Currently, 35 delivery robots are being pilot-operated in South Korea under the ‘Regulatory Sandbox Demonstration Exception.’ This system exempts new services from existing regulations when introduced, but the period is limited to two years, resulting in temporary services.

According to the online shopping trends announced by Statistics Korea on the 3rd, domestic online shopping transaction volume in September reached 16.2151 trillion KRW, setting a record high. In particular, food service transactions including delivery increased by 36.8% compared to the previous year. With the surge in delivery demand, the field is experiencing a shortage of riders, naturally driving up delivery fees.

As a solution to problems caused by increased delivery volume, countries worldwide are promoting the commercialization of delivery robots. In the United States, Domino’s Pizza started a delivery service using autonomous robots in Houston last April in partnership with autonomous driving startup Nuro. The UK’s robot delivery company Starship introduced delivery robot commercialization as early as 2018 and recently recorded one million deliveries. While domestic companies struggle with regulations, the adoption of delivery robots is already becoming a reality rather than a future prospect.

The first domestic surgical robot, Revo-i, a laparoscopic surgical robot. Photo by Mirae Company

Approval for Surgical Robot Launch Takes Over a Year... Expanded Support Needed to Secure Clinical Trials

The situation for medical robot companies is even more challenging. The global medical robot market is worth $16.74 billion (approximately 19 trillion KRW), but the domestic medical robot market is only about 90 billion KRW. The Korea Institute of Science and Technology Planning and Evaluation diagnosed that the technological gap with global companies that have secured the market for surgical robots?where surgical experience is a measure of technology?is 3 to 4 years behind.

In the field, voices are raised that even with excellent technology, it is difficult to achieve results due to regulations. Launching a surgical robot requires approval from the Ministry of Food and Drug Safety, new medical technology evaluation by the Ministry of Health and Welfare, and insurance reimbursement evaluation, which takes over a year. To receive government support related to medical robots, companies must prove ‘equivalence evaluation’ with existing products, which is difficult for innovative technologies. Additionally, clinical trials and long commercialization periods impose significant burdens on management, which are cited as growth inhibitors for most domestic medical robot companies, which are small and medium-sized enterprises.

Global Surgical Robot Market Size. Table = Ministry of Food and Drug Safety

A representative from a spinal surgery robot development company said, “Since the value of surgical robots comes from stabilized clinical data, realistic support measures such as government assistance to prioritize application in national and public hospitals are necessary to enable domestic surgical robots to be applied in various fields.”

Experts point out that to overcome barriers from global companies and strengthen competitiveness of domestic medical robot companies, it is necessary to refine the core technologies each company possesses and to ease regulations and provide continuous support through inter-ministerial government collaboration.

Dr. Kim Chunwoo of the Healthcare Robot Research Group at the Korea Institute of Science and Technology said, “Although domestic medical robot companies are latecomers compared to major advanced countries, attention should be paid to meaningful technological achievements such as successful commercialization of surgical robots,” adding, “Closer government-level support during the commercialization process will also strengthen global competitiveness.”