US Bans Sales and Imports of Connected Cars from China and Russia... Ministry of Trade Says "Korean Opinions Reflected to Ease Burden"

The Ministry of Trade, Industry and Energy announced on the 15th that "most of the opinions submitted by our government have been reflected, and the burden on the industry has been significantly alleviated" regarding the U.S. government's regulations on connected cars.

The U.S. Department of Commerce's Bureau of Industry and Security (BIS) announced the "Connected Car Final Rule" on the 14th (local time) to protect the United States from national security risks arising from connected cars related to China and Russia.

This final rule prohibits the sale and import of automobiles equipped with connected car parts and software (SW) designed, developed, manufactured, or supplied by companies related to China or Russia within the United States. The regulated connected technologies include Vehicle Connectivity Systems (VCS) and Autonomous Driving Systems (ADS). The regulation will apply to software starting with 2027 models and to hardware starting with 2030 models.

An official from the Ministry of Trade, Industry and Energy explained, "Since early 2024, when the U.S. government gave prior notice of the connected car rulemaking, the Korean government has continuously gathered industry opinions through industry meetings and closely consulted with the U.S. government by submitting official opinions. The final rule reflects Korea’s requests for narrowing the scope of regulation, clarifying definitions, and easing the obligation to submit Software Bill of Materials (SBOM)."

The Ministry plans to thoroughly analyze and communicate the final rule with the industry, support diversification of the supply chain for regulated parts and the establishment of the SBOM system to minimize impact, and continue to cooperate with the U.S. side to ensure smooth implementation of the final rule.