Starting This Second Half of the Year, 'Autonomous Taxis' Will Operate Even in Broad Daylight

Announcement of Pan-Governmental Economic Regulation Improvement Tasks
Korean Autonomous Taxis Operate Only at Night
Challenges in Securing Diverse Data
Daytime Operations Permitted and Fleet Expansion Starting This July

Autonomous taxis, which previously operated only during late-night hours, will begin daytime operations starting in the second half of this year. The number of autonomous taxis, currently only three, will also be expanded to at least seven.

On the 19th, the government held the 'Ministerial Meeting on National Issues, Economic Affairs, and Industrial Competitiveness Enhancement' at the government complex in Jongno-gu, Seoul, and announced the 'Economic Regulation Improvement Tasks' containing these details.

A self-driving taxi operating in the Gangnam-gu area of Seoul. Photo by Seoul Metropolitan Government

The tasks include plans to expand the operating hours of autonomous taxis. Currently, autonomous taxis are only available on weekdays during late-night hours (11 PM to 5 AM the next day). Starting in July, when selecting new autonomous taxi operators, the government will grant permits that allow extended operating hours. The existing late-night operating hours will be increased, and daytime operations will also be additionally permitted.

Autonomous taxi operators have long expressed difficulties in demonstrating autonomous driving technology due to regulations. To advance autonomous driving technology, diverse data reflecting Korea’s complex road environments and seasonal characteristics are essential. However, since operation is only permitted during limited time slots on certain routes, collecting diverse data has been practically impossible.

The operating areas and number of autonomous taxis will also be expanded. Currently, autonomous taxis can only be used within a 'pilot operation zone' of about 16.5㎢ in Gangnam. From the second half of the year, the operating area will expand to the entire Gangnam district. The number of operating vehicles, currently three, will increase to seven.

Choi Sung-young, head of the Regulatory Innovation Team at the Ministry of Economy and Finance, explained, "To reach Level 4, the final stage of autonomous driving, data collection is necessary," adding, "In countries like China, data collection from autonomous vehicles is actively conducted." He further stated, "Korea is also taking measures to advance by increasing the operating hours of autonomous taxis."

Significant Expansion of Business Types Eligible for Simplified Closure Reporting

This task also includes regulatory improvements proposed by small business owners and companies. The government plans to significantly expand the number of business types eligible for the simplified closure reporting service from the current 56 within the first half of this year. The simplified closure reporting service allows businesses to report closure to only one of either the local government or the tax office. Previously, due to limited service provision, some small business owners reported closure to only one place even when their business type was not eligible, resulting in fines.

The ambiguous regulations regarding business types allowed to enter Free Trade Zones will also be revised. To promote exports, the government offers tax and rent incentives to companies located in Free Trade Zones. However, unclear conditions for entering Free Trade Zones caused difficulties in companies’ investment location decisions. The government plans to specify exactly which business types can operate in Free Trade Zones to eliminate uncertainty.

Regulatory improvements to promote industry and technology were also disclosed. In the bio sector, when reviewing 'Innovative Pharmaceutical Company Certification,' quantitative indicators will be incorporated, and research and development (R&D) cooperation with global pharmaceutical companies will be considered. This measure reflects industry feedback that the current certification criteria rely solely on qualitative evaluation and lack objectivity.

Promotion of the pre-assessment system used for tax credits on research personnel development expenses will also be strengthened. The pre-assessment system currently has a manual exceeding 200 pages and requires costs for documentation, resulting in low utilization. The Ministry of Science and ICT, the National Tax Service, and related associations plan to hold explanatory sessions on the pre-assessment system for companies twice a year.