Connected and autonomous vehicles

Opportunity Areas for UK Companies

Key opportunity areas for British CAV companies in Korea include autonomous driving technology, V2X and IVI and HD mapping solutions. For autonomous driving technology low-cost LiDAR solutions, artificial intelligence software and vehicle control hardware (including automotive semiconductors) represent significant opportunity areas. Korea’s anticipated shift from DSRC to C-V2X in combination with its world-class network capabilities means UK companies will find fertile ground for partnerships in Korea. Korea’s network capabilities further make the country an ideal steppingstone for IVI and HD mapping solution providers that are looking to expand internationally.

Korean automotive and ICT companies alike are actively working on securing their share in the rapidly developing CAV market. Key players from the automotive industry include Hyundai Motor Company, Hyundai Mobis and Mando, who have centred their investment and research activities around sensor technology, such as low-cost LiDAR, and control hardware and software. Samsung and LG are directing their attention towards IVI and V2X solutions with a focus on hardware. Telecom companies SKT and KT use their network capabilities for V2X and HD mapping, while IT players Naver and Kakao apply their AI expertise to develop IVI and mapping solutions.

Market Entry Checklist

UK businesses looking to engage in a strategic partnership or introduce their technology or product into Korea should take into account both business- related and cultural factors before setting out. Some of these considerations are:

• Do we have a strong differentiator that sets us apart from our competitors in the market?
• Do we have a strong track record in other major markets?
• Are we willing to localise the product for the market and/or for local regulations?
• Are we ready to provide a Proof of Concept (PoC) at little or no cost to the customer?
• How do we provide after-sales support?

UK businesses can approach the Korean market either through direct sales from the UK, by appointing a partner or by setting up an office in Korea.

With the right strategy and local support, Korea offers a vast array of opportunities for UK companies looking to expand overseas.

Government and CAV

The Korean government has designated autonomous vehicles as a focus area for R&D efforts and announced significant investments to support this policy. Its investment in K-City, Korea’s largest autonomous vehicle testing ground spanning 360,000m2, is perhaps the most notable example of the government’s policy. Other large-scale projects related to CAV have been announced in Seoul, Daegu, Pangyo and Sejong City, solidifying the government’s commitment to swift commercialisation of CAVs. Regulatory and ethical frameworks to support the industry are also being drafted, with several amendments having already been adopted from 2018.