Chinese Robotaxis Tested in Central Gangnam... Domestic Firms on Edge [Korean Autonomous Driving Cedes Home Turf to China]

Gangnam Becomes a Testbed for Chinese Robotaxis
Concerns Rise Over Outflow of Domestic Driving Data and Threats to Korean Tech Independence

Seoul's Gangnam district, which has become a testing ground for China's 'robotaxi,' is now seen as a likely channel through which domestic driving information could flow out to China. Driving data includes traffic signals, vehicle speeds, road conditions, and traffic accidents. As Chinese autonomous driving companies conduct tests in the heart of Seoul, there are concerns that they could extract critical traffic information from key areas.

A PonyLink autonomous vehicle is undergoing a pilot operation in the autonomous driving demonstration zone in Gangnam-gu, Seoul. PonyLink

Domestic autonomous driving companies, which must compete not only locally but also globally, are increasingly anxious that the market could be taken from them before homegrown technology has a chance to flourish. Additionally, due to concerns within the taxi industry, it is difficult for these companies to secure investment, leading to a double burden. Some even warn that the robotaxi business could become a repeat of the 'Tada' incident, where the introduction of a ride-hailing service was blocked due to strong opposition from the taxi industry.

According to the industry on August 25, the robotaxi of Pony.AI-known as the 'Chinese Waymo'-is currently undergoing autonomous driving tests right in the middle of Gangnam-daero. Four vehicles are being operated on a trial basis: three are accumulating driving data within the autonomous driving demonstration zone in Gangnam-gu, and one is being used for building high-precision maps and collecting terrain data.

An autonomous driving industry official commented, "Autonomous vehicles can freely move on roads and collect detailed information about the location, environment, and surrounding people." The official also pointed out, "If driving data is transmitted directly overseas for technology development and business operations, it may become difficult for the country to manage how this data is used." Even if objects or people are blurred, there are concerns that the data could still be misused.

Unlike personal information, there are no specific regulations on the overseas transfer of driving data. A Ministry of Land, Infrastructure and Transport official explained, "The ban on overseas transfer only applies to data related to personal information; there are no separate rules for driving data." The official added, "Driving data can include information such as how people move, or at what speed a child or elderly person walks. As long as personal information captured by cameras is blurred and thus de-identified, it is not considered personal information."

When issuing licenses, the only evaluation is whether de-identification technology for personal information is present. Pony.AI received a temporary autonomous driving operation permit from the Ministry of Land, Infrastructure and Transport in December last year through its domestic partner, PonyLink.

On the 18th, a PonyLink autonomous vehicle was undergoing a test drive in the Gangnam district of Seoul. Photo by Youngju Jeon

Within the domestic industry, there are growing concerns about Gangnam itself becoming a testing ground for Chinese companies. The area around Gangnam Station is well-organized in terms of lane markings and traffic signals, and it experiences heavy vehicle and pedestrian traffic.

In particular, the strong light reflected from buildings onto the roads creates optimal conditions for the cameras, radars, and lidars installed in autonomous vehicles, potentially enhancing their sensor performance. As Gangnam is an ideal area for autonomous driving tests, the more high-quality data is accumulated, the more Pony.AI's autonomous driving technology will advance, potentially causing domestic companies to fall further behind in commercialization.

Yoo Minsang, Chief Strategy Officer (CSO) of the domestic autonomous driving startup Autonomous A2Z, said, "Large overseas robotaxi companies are expanding abroad to verify the commercial viability of their technologies," adding, "The entry of foreign companies into Korea poses a significant threat to our industry." Although Autonomous A2Z is also conducting overseas business, it mainly participates in nationwide smart city projects, which is fundamentally different from Chinese companies entering the domestic market.

The influx of Chinese companies into Korea is expected to intensify. Following the U.S.-based Waymo, Baidu-ranked second globally in autonomous driving- is also seeking to enter the Korean market in partnership with Kakao Mobility, the country's largest mobility platform. Baidu operates its robotaxi service in China using its autonomous driving technology, 'Apollo Go.' If Kakao Mobility, which owns the taxi-hailing app 'KakaoT,' launches a robotaxi service, it is expected to rapidly dominate the domestic robotaxi market. For this reason, industry insiders argue that the overseas transfer of driving data should be restricted and that domestic companies' room for maneuver should be expanded.

Kim Pilsoo, a professor at Daelim University, said, "Chinese autonomous driving technology is three to four years ahead of ours," adding, "The more we rely on foreign technology, the more dependent we become, and the less self-reliant our companies and technologies will be."