
▷ Future Car Industry National Vision Proclamation (Oct 15)
- Three strategies for nurturing future car industry for rapid shift towards future cars announced
➊ Actively target the global market through eco-friendly car technologies and acceleration of domestic deployment
➋ Establish the world’s first fully autonomous driving institutional frameworks and infrastructure (major roads) by 2024
➌ Rapid shift towards open ecosystem for future cars based on private investment worth 60 trillion won
Become the most competitive country in terms of future vehicles by 2030
➊ Sales of electric and hydrogen vehicles to reach 33% in newly launched cars in the domestic market and take up 10% of the global market share by 2030
➋ Put fully autonomous vehicles (level 4 autonomy) to commercial use on major roads nationwide for the world’s first time by 2027
□ The Korean government hosted the Future Car Industry National Vision Proclamation Ceremony on October 15, 2019.
ㅇ The Future Car Industry Development Strategy 2030, which outlines the commitment to take the leap towards a leading country in the future car industry by 2030, was jointly declared by relevant ministries.
【Overview of future car industry national vision proclamation ceremony】
‣ Date / venue: Oct 15, 2019 (Tue), 14:15~15:25 / Namyang R&D Center of Hyundai Motor Group in Hwaseong
‣Attendees: 200 participants including Deputy Prime Minister of Economy, Ministers of MOTIE, MOLIT, MSIT, ME, MSS, Chairman of the FSC, Commissioner General of the KNPA, large companies and SMEs in future cars and relevant institutions, etc.
‣Program: Future Car Industry National Vision proclamation, lecture and MOU on future cars, etc. |
【Strategies】
1. Gain the upper hand in the global eco-friendly car market
◆ Annual sales of electric and hydrogen vehicles among newly launched cars: 2.6% in 2019 → 33% in 2030
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Have technological dominance in the global eco-friendly car market
□ (Produce) Establish eco-friendly car line-up in all car types by 2030, maintain and improve the world-class technological dominance of eco-friendly cars (electricity efficiency rating, driving distance, etc.)
ㅇ (Diversify car types) Create eco-friendly car line-up in all types of cars by 2030 with a focus on luxury sedans, small SUVs and small trucks under 5 tons in electric vehicles and for hydrogen-powered cars, focus on SUVs and mid-to-large trucks over five tons.
ㅇ (Improve performance of cars) Reshape the structure for providing grants based on electricity efficiency and driving distance of electric vehicles to increase efficiency and improve performance
- Increase the driving distance from 400km to 600km by charging once and improve charging speed by three times by 2025 (invest 385.6 billion won in 2020-2026)
- Enhance the durability of hydrogen cars from 160,000km to 500,000km, ensure 100% of components are made in Korea by 2022, and strive to bring down prices of cars to around 40 million won by 2025
□ (Export) Support R&D of components when global automobile manufacturers (GM, Renault, etc.) produce electric vehicles in Korea and cultivate Korea as the global production hub of electric vehicles
ㅇ To this end, support will be provided to customized production of car components focusing on key car types instead of the existing way of developing technologies for components.
□ (Standard) Reflect global standards to technologies and components developed in Korea in the global hydrogen car market which is in its early stage of market formation
ㅇ Propose 10 domestic technologies to be international standards including safety technologies, hydrogen production technologies for hydrogen charging stations and commercial hydrogen car standards by 2030
section |
by 2022 |
by 2030 |
charging station, mobility (5) |
▪ mobile hydrogen charging stations, etc. |
▪ safety monitoring of charging stations |
production and storage (5) |
▪ large scale hydrogen extractors, etc.
▪ hydrogen flow meters, etc. |
▪ regenerative power system
▪ ultra-high pressure tube trailers |
ㅇ Promote international cooperation by holding general assembly on hydrogen technologies (ISO, 2020) and international standardization forum, etc.
Accelerate the spread of eco-friendly cars in Korea
□ (Provide support to consumers) Expand support for the accelerated spread of eco-friendly cars in domestic market
ㅇ (Grant) Proactively review whether to provide purchase grants after 2022 and the level of grant funding in consideration of market conditions such as production scale, price and performance of battery (electric vehicles) and hydrogen fuel cell (hydrogen cars) and the competitiveness of future cars
ㅇ (Fuel cost) Cut hydrogen price by half by 2030 (around 8,000 won in 2018) thanks to a drop in hydrogen distribution cost
ㅇ (Tax benefits) When the sunset period for reducing individual business tax (~2022) and acquisition tax (~2021) approaches, which is available for purchasing eco-friendly cars, proactively look into the possibility of extending the period for providing tax benefits
□ (Increase in demand) Identify large-scale demand for electric and hydrogen cars mainly from operators owning multiple types of vehicles such as buses, taxis and trucks
* ▴ increase the number of hydrogen buses ▴ pilot projects on hydrogen taxis ▴ increase the number of electric cargo trucks ▴ develop and export hydrogen trucks, etc.
ㅇ Drive demand through preferential treatment* on hydrogen bus operation in selecting transport operators
* increase the value of hydrogen buses in measuring the standard for the required number of vehicle ownership in the approval process of transport operators (increase by 1.5 times)
ㅇ Recommend large logistics and franchise companies to buy electric cargo trucks, release the sales figures and set the portion for mandatory purchase
ㅇ Develop self-driving vehicles (buses, shuttles, taxis, etc.) with a focus on hydrogen and electric vehicles and expand their use to meet the demand from public sector and public transport
□ (Hydrogen charging infrastructure) Establish 660 hydrogen charging stations by 2030 and set up 15,000 electric chargers by 2025
* hydrogen charging stations: (as of now) 31 → (by the end of 2019) 86 (including the cases of construction commencement) → (by 2022) 310 → (by 2030) 660
Chargers for electric vehicles (super-fast charging): (as of now) 5,427 → (by the end of 2019) 5,800 → (by 2022) 10,000 → (by 2025) 15,000
ㅇ Hydrogen charging stations will be installed in strategic locations by 2030 to be within 20 minutes of reach from major cities
ㅇ Over 1,500 chargers for electric vehicles will be installed every year in apartment complexes and major hubs such as large supermarkets, gas stations and highway rest stops
2. Gain upper hand in future autonomous vehicle market
◆ Establish system and infrastructure (major roads) for fully autonomous driving by 2024,
roll out the world’s first commercial service by 2027
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Complete establishment of full autonomous driving system and infrastructure (major roads)
□ (Infrastructure) Put in place major four infrastructure essential for fully autonomous driving to major roads nationwide by 2024, which include communications infrastructure, precision mapping, traffic control and roads
➊ (Vehicle-to-vehicle communication infrastructure) Set the wireless communication method* (by 2021) in consideration of international standards and complete nationwide deployment on major roads (highways, national roads, metropolitan areas) by 2024
* transmit and receive wireless communication signals for vehicles (the existing method of WAVE vs. 5G method vs. a mixture of the two methods)
➋ (Precision mapping) Create three-dimensional map for roads nationwide for perceiving geographical features* (by 2030)
* cover highways by 2019 → cover national roads and metropolitan areas by 2024 → cover 110,000km of roads nationwide by 2030
➌ (Traffic control) Establish an integrated system for sending traffic signals to vehicles in remote areas real time and controlling traffic flows (by 2030)
➍ (Roads) Carry out measures towards the goal of nationwide harmonization of traffic lights and safety signs on roads (by 2030) in order to improve the capabilities for perceiving vehicle sensors
* pilot project (by 2022), 30% of national coverage (by 2024), complete nationwide harmonization (by 2030)
□ (System) Finish building institutional frameworks for autonomous driving by 2024 in measures such as coming up with standards for production and operation of autonomous vehicles, performance verification system, insurance, support for commercialization, etc.
➊ (Production) Set safety standards for production of autonomous vehicles (level 3: 2019, level 4: 2021~), align the KS standard for autonomous vehicles with international standard (180 standards by 2021)
➋ (Operation) Revise legislation and enact relevant regulations (by 2024) in areas of defining autonomous vehicles, holding accountability for accidents, allowing drivers to adjust video marking devices for operating autonomous vehicles
* ▴ legislate definition and core functions of autonomous vehicles (by 2020) ▴ create regulations on legal status and accountability for accidents for fully autonomous vehicles (by 2024) ▴ revise the items that drivers are required to comply with such as allowing adjusting and viewing of video marking devices (by 2024)
➌ (Performance verification) Establish performance verification system of autonomous vehicles in validating driving capabilities (by 2022) and build verification facility to check capabilities of autonomous vehicles for driving and compliance with regulations (2022~)
➍ (Insurance) Provide insurance for partially autonomous driving (2019, level 3) and establish insurance system for fully autonomous driving (2021~)
➎ (Support for commercialization) With the implementation of the “act on autonomous vehicles”(May 2020), ensure demonstration and commercialization of various services are possible prior to the launch of commercial fully autonomous driving service
Develop fully autonomous vehicles
□ (Market) Car manufacturers to commercialize partially autonomous vehicles (level 3) by 2021 and launch fully autonomous vehicles (level 4) by 2024 ※ (level 3) driving on highway, (level 4) driving on urban roads
ㅇ Thanks to this, level 3 and 4 autonomous vehicles are expected to take up about 50% of newly launched cars by 2030.
□ (Technology) The Korean government to focus its investment on system, components and communication service of level 4 autonomous vehicles to take a leap forward towards a technological powerhouse in autonomous vehicles by 2027
* invest KRW 1.7 trillion during 2021-2027 (under pre-feasibility study), develop technologies for core components, vehicle system and infrastructure
ㅇ (System) Make strategic investment to major three functions of autonomous driving (recognition, judgement, control) and ensure fully autonomous driving system to be made in Korea
- Rapidly secure technologies through global joint development of AI system, etc.
ㅇ (Components) Nurture component ecosystem such as sensors and automotive semiconductors and ensure their domestic production through providing support for large-scale technology development
ㅇ (Communication) Focus on developing technologies for realizing 5G-based fully autonomous driving
□ (Standard) Support domestic technologies to advance into global market by proposing R&D outcomes of autonomous vehicles developed in Korea to be global standard
* standardization trends: rapidly evolving from level 1,2 standardization to level 3,4
→ standardization in sensors, connected cloud services, precision mapping, etc.
ㅇ Finish proposing 25 international standards in areas of sensors for perceiving autonomous driving environment, precision mapping and setting safety standards for vehicles by 2023
3. Prepare for the future car era
◆ Prioritize on expanding connected information service
in preparing for rapid growth of future car service industry
◆ Bolster 3 private-sector-led services and 9 public services based on public demand
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□ The car of the future will be expanded through ➊ connected information service ➋ autonomous mobility service ➌ new modes of transportation
* ➊ (Information service) Infotainment inside vehicles + information-based convenience services (parking, refueling, gas filling, etc.)
➋ (Mobility service) Autonomous driving shuttles, taxis, logistic services, etc. using future vehicles
➌ (New modes of transportation) Services using new modes of transportation such as flying cars
□ (Information service) Proactively remove three hurdles in developing various services in relation to car of the future
➊ (Disclose data) Disclose vehicle-related data owned by car manufacturers to companies developing services (2020~)
* Focus on developing four to five services including in-store pickup service for micro-businesses, car washing services at home and vehicle management services, etc. (2019~)
➋ (Utilize personal data) Carry out measures to safely use personal data in ways including de-identification (2020~)
* Establish legal foundation for utilizing anonymous information by revising the Personal Data Protection Act and Information and Communications Network Act (in the second half of 2019)
➌ (Improve fee system) Look into the possibility of establishing telecom service plan which enables various connected services in times of launching commercial autonomous vehicles (2019~)
* Establish telecom service plans that enable various connected services when launching commercial autonomous vehicles
□ (Mobility service) Apply smart special regulations* to 3 private sector-led services and 9 public services based on public demand and implement pilot service
* Regulatory sandbox (took effect in Jan 2019), special regulation-free zones (took effect in Apr 2019), autonomous driving act (to take effect in May 2020), etc.
➊ (Private sector-led) Pursue 3 private sector-led services such as autonomous shuttles (Sejong City, Daegu, etc. ~2022), autonomous taxis (2021~) and commercial truck platooning (2021), etc.
➋ (Public demand) Carry out 9 public services such as providing support for vulnerable road users in mobility service and unmanned patrol through autonomous driving in order to drive public demand of future car services
* Technology development in 9 public services (2021~) and carry out pilot projects (2025~)
□ (New modes of transportation) Flying car service, which is a new mode of transportation that can drastically reduce travel time* will be commercialized by 2025.
* Decrease the time for traveling in cities by 40% through adoption of PAV (Personal Air Vehicle) (Korea Transport Institute, 2017)
➊ (Production technology) Prioritize on securing core technologies such as motors with high output (~2023)
➋ (Traffic system) Plan to develop transport system technologies (UTM)* by 2022 through acquiring PAV-only roads (highways) and setting automatic routes, etc.
* Use identification and location-based information service through UTM (Unmanned Traffic Management System)
➌ (Safety standard) Legislate and revise safety standards for aircrafts (aim to complete by 2023) in the process of manufacturing→certification→operation→maintenance
➍ (Commercialization) Carry out plans to facilitate services for passengers by going through safety demonstration (2025~) such as pilot run
□ (Smart city) Create smart cities in Sejong and Busan which serve as large testing grounds for future cars in providing future transport system and autonomous driving service
ㅇ (Demonstration test) Operate future vehicle infrastructure and service living lab (2020-2023) so that citizens can experience future car services
ㅇ (Integrated traffic information) Provide information on transit service between all urban transport services and optimal travel route based on AI
ㅇ (Autonomous public transport) Establish public transport system for autonomous driving (by 2023) based on autonomous driving loops (4km) and 5G-based control system
* Create smart crosswalk, smart stops and signal system, etc. which respond to traffic conditions and emergencies based on 5G-based control system (by 2023) → (2023~) establish public transport system for autonomous driving
4. Early Transition to future vehicles
◆ The percentage of automotive parts suppliers among automotive electronics companies:
4% in 2019 → more than 20% in 2030
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Accelerate auto parts suppliers’ transition to future vehicles
□ (Technology / Talent) Promote joint technology development with foreign car manufacture