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South Korea’s government is committing 464.5 billion won ($317.6 million) to advance the country’s automotive sector this year, with a significant focus on autonomous driving technologies. The Ministry of Trade, Industry and Resources announced the comprehensive funding package as the nation seeks to maintain its competitive edge in next-generation automotive technologies.
Major Investment in Core Technologies
The bulk of the funding, totaling 382.7 billion won, will flow directly into research and development of critical automotive technologies. Autonomous driving systems represent a key priority, alongside electronic and hydrogen-powered vehicles. A public-private alliance on autonomous driving, established last year, will spearhead various self-driving technology projects under the ministry’s guidance.
For electric and hydrogen vehicles, the government will support development of essential technologies including cell-to-pack battery systems specifically designed for electric vehicles. The remaining 81.8 billion won will fund investment projects and provide support for automotive parts manufacturing businesses across regional hubs throughout the country.
Regional Technology Push Expands
Meanwhile, Hong Kong authorities are establishing a new working group dedicated to autonomous vehicle development as part of broader innovation initiatives. The Transport Department’s latest strategy blueprint, released Friday, outlines this autonomous vehicle focus alongside other smart transportation measures including real-time adaptive traffic signals and intelligent motorway management systems for major roads.
These parallel developments across Asia Pacific demonstrate the region’s coordinated approach to advancing autonomous vehicle capabilities, with governments providing both funding and institutional support.
Building on Export Success
South Korea’s substantial investment comes after the country achieved record automotive exports of $72 billion last year, demonstrating resilience despite challenges from U.S. tariffs. The government’s technology-focused funding strategy appears designed to build on this export momentum by ensuring Korean automakers remain at the forefront of emerging automotive technologies.
What’s Next
The ministry’s autonomous driving alliance will begin implementing various self-driving technology projects throughout 2024, while Hong Kong’s new working group will develop frameworks for autonomous vehicle adoption. Both initiatives signal sustained government commitment to positioning Asia Pacific nations as leaders in the global transition to autonomous transportation.
Sources: Koreatimes, South China Morning Post
