[Sky Taxi Takes Off] "A New Market Has Opened"... Cars, Telecom, Construction, and Local Governments All Entering the 'UAM' Sector

51 Sites Participate in K-UAM Demonstration Project
Commercialization Difficult for Single Company
Likely Continued Alliances Like Electric Vehicle Industry

[Asia Economy Reporter Kiho Sung] The competition among domestic companies to secure the aerial route is heating up. As the government accelerates the commercialization of Urban Air Mobility (UAM), various companies including manufacturers, telecommunications firms, and construction companies, as well as public institutions, are announcing their participation to gain an early lead in related businesses. The industry views UAM as a future growth engine, so various alliances and collaborations are expected to continue.

According to the industry and the Ministry of Land, Infrastructure and Transport on the 4th, a total of 51 entities, including six consortiums and six individual companies, have expressed their intention to participate in the Korean Urban Air Mobility (K-UAM) demonstration project.

Commercializing UAM requires cooperation among various companies such as aircraft manufacturers, telecommunications firms, and construction companies. In the aircraft sector, automobile companies that have accumulated electric vehicle technology are actively entering the market alongside aircraft manufacturers. In fact, Hyundai Motor Company has long positioned the UAM business as a future core group business and is investing accordingly. Chairman Euisun Chung expressed strong determination in 2019 by forecasting, "50% of Hyundai Motor Group's future business will be automobiles, 30% urban air mobility (UAM), and 20% robotics."

Telecommunications companies are working on building a ‘mobility platform.’ Unlike general drones, UAM carries passengers, so it is essential to enhance communication networks both on the ground and in the airspace. For smooth and safe UAM flights, communication must be maintained up to 10 km altitude. Currently, 5th generation mobile communication (5G) is only possible up to 120 meters altitude. Therefore, for flight, it is necessary to establish low-earth orbit satellite communication with 6th generation mobile communication (6G). Additionally, advanced 6G technology such as ultra-low latency is required to stabilize the ‘control system’ for autonomous driving. Telecommunications companies also handle procedures such as reservations and identity verification for boarding, as well as transfer services with ground transportation.

Besides participating in the K-UAM consortium, telecommunications companies are accelerating various efforts to secure the UAM market. SK Telecom participated in the Busan Motor Show held on the 15th of last month and announced its UAM strategy. SK Telecom aims for UAM commercialization by 2025, signing a strategic business agreement with leading UAM aircraft manufacturer Joby Aviation and securing exclusive rights in Korea for aircraft capable of commercialization starting in 2024.

Last November, a Volocopter conducted a test flight at the Urban Air Mobility (UAM) flight demonstration event held at the Seoul Gimpo Business Aviation Center (SGBAC). Urban Air Mobility is a new air transportation system that operates in connection with other modes of transportation, using eco-friendly electric vertical takeoff and landing vehicles that can be utilized within urban areas for the purpose of transporting passengers or cargo. Photo by Moon Honam munonam@

KT demonstrated UAM and autonomous drone flight control at Incheon International Airport in November last year. It also uniquely possesses drone traffic management (UTM) technology with over 300 demonstrations conducted domestically.

LG Uplus signed a memorandum of understanding (MOU) with Busan City on the 27th of last month to commercialize UAM and foster the ecosystem in Busan. A total of 13 operators, local governments, military, and public institutions participated in this agreement. The institutions and participants agreed to conduct demonstration projects utilizing Busan’s marine infrastructure to promote early activation and market dominance of UAM.

Construction companies are promoting the establishment and operation of infrastructure such as vertiport facilities (UAM takeoff and landing sites) and vertiport operation equipment (charging). Public institutions will provide aviation operation infrastructure and policy support.

Currently, companies are forming consortiums to participate in the K-UAM demonstration project because no single company can possess all the necessary technologies. The Hyundai-led UAM cooperation group includes KT, Hyundai Construction, Incheon International Airport Corporation, and Aegis Asset Management. Hanwha Systems proposed participation in the demonstration project alongside SK Telecom, Korea Airports Corporation, Korea Meteorological Industry Technology Institute, and Korea Land and Geospatial Informatix Corporation.

LG Uplus has partnered with Pablo Aviation, Kakao Mobility, Jeju Air, GS Caltex, GS Construction, and Vertical, while Lotte Rental formed a consortium with Lotte Construction, Lotte Information & Communication, Mint Air, and Mobius Energy.

Recently, competition among local governments has also intensified. Since UAM carries a risk of crashes, pilot projects are being conducted along the Han River. However, with the presidential office relocation, there is a high possibility that a no-fly zone will be established along the Han River. As the pilot project along the Han River becomes uncertain, Incheon Metropolitan City, Goyang City, and Ulsan Metropolitan City are competing to attract the demonstration project.

An industry official said, "With the advent of the electric vehicle era, automobile manufacturers, battery companies, and electronic parts companies are joining forces," adding, "Since UAM is showing a similar pattern on a large scale, alliances and collaborations among companies will continue to unfold."