South Korea

Intelligence for Better Decision Making

Hyundai Launches Domestic AI-Driven Autonomous Vehicle Initiative for 2028 Commercialization
Jan. 13, 2026 | Technology & Innovation

Hyundai Motor and its partners are developing a domestically engineered AI-driven autonomous vehicle set for commercialization by 2028.

**Hyundai aims to integrate a homegrown AI autonomous driving model to manage core vehicle functions, narrowing the technological gap with global automakers and boosting its competitiveness.**
LG Electronics, Hyundai Mobis and HL Mando will jointly build the ADV platform—combining vehicle architecture and software—by the end of next year, while HL Clemoove and Kakao Mobility develop a specialized AI model for software-defined vehicles by 2027. Additional partners including Naver will support data integration and AI infrastructure.

**Mass production of the ADV is scheduled to begin in 2028, with broader applications rolling out by 2030 to strengthen South Korea’s AI mobility ecosystem.**
Hyundai plans to announce key milestones at the K-AI Future Car Alliance signing ceremony in January 2026. Chairman Chung Eui-sun has stressed the strategic shift toward in-house AI development to position Hyundai as a world-class automaker and reduce reliance on external solutions.

**In parallel, Hyundai is expanding its AI capabilities through collaborations in robotaxi and robotics.**
Partnerships with Motional and Boston Dynamics will foster AI expertise transferable across mobility and robotics ventures. Naver will extend mobility services by integrating AI agents, infrastructure and data to support future vehicle ecosystems.

**Gwangju city will serve as South Korea’s first autonomous driving testbed, hosting around 200 AI-equipped robot vehicles from mid-2026.**
Backed by a 62.2 billion won national investment, these vehicles will collect urban driving data in snow, rain, congestion, construction zones and narrow alleyways to refine autonomy algorithms and enhance performance.

**The K-Autonomous Driving Collaboration Model in Gwangju pairs large corporations developing vehicle control platforms with startups providing autonomous driving software.**
The downtown area will act as a demonstration zone, leveraging an existing national AI data center and a major driving simulator in Advanced Industrial Complex 3. Plans call for a triangular industrial belt linking Jingok, Bitgreen and the Future Car Industrial Complexes, later expanding citywide to mirror global autonomous driving hubs.

**Government support includes regulatory easing within designated autonomous driving pilot zones to encourage industry participation.**
These measures align with the national Master Plan to Foster the Future Car Materials, Parts, and Equipment Industry and aim to build a sustainable ecosystem that drives long-term local economic growth.
Motional advances full driverless robotaxi rollout in Las Vegas for 2026
Jan. 13, 2026 | Transportation & Logistics

Fully driverless Level 4 robotaxi services promise to redefine urban transportation in major cities.

**Motional, a majority Hyundai Motor Group joint venture, plans to launch fully driverless Level 4 robotaxi services in Las Vegas by the end of 2026.**
Since early 2026, the company has run pilot services with modified Hyundai IONIQ 5 vehicles alongside ride-sharing platforms such as Uber and Lyft to validate safety, driving quality, and customer experience before full commercialization.

**The company’s autonomous driving efforts began in 2018, with pilot programs in Las Vegas, Los Angeles, Santa Monica, and Singapore.**
Motional chose Las Vegas for its dense traffic and high tourist volume, creating rigorous test conditions. To date, it has provided more than 130,000 public rides and logged over 2 million autonomous miles without any at-fault incidents. A fleet of 109 vehicles operates under daily monitoring by a central control team based in Las Vegas.

**Motional follows a safety-first approach, meeting US NHTSA Federal Motor Vehicle Safety Standards and earning validations from German testing and certification bodies.**
Its robotaxis integrate 29 sensors—including cameras, radar, and LiDAR—for multimodal redundancy. On January 8, 2026, a 35-minute Level 4 test drive in Las Vegas demonstrated the vehicle’s advanced perception and decision-making: it detected a flying plastic bag, stopped, activated hazard lights, and smoothly navigated commercial districts, tourist areas, hotels, and the busy Strip. The only issue noted was noticeable computer fan noise inside the cabin, which the team will resolve before commercialization.

**Motional is shifting from a modular autonomous architecture to an end-to-end AI and machine learning system that unifies perception, decision-making, and control into a single model.**
This new approach aims to boost performance in complex settings, reduce software complexity, speed up updates, and support global scalability. Current pilot vehicles operate both architectures in parallel to gather data and refine the end-to-end system.

**Hyundai Motor Group will integrate Motional’s Level 4 operational know-how and safety systems with 42dot’s software-defined vehicle platform to strengthen its autonomous driving capabilities.**
Having invested approximately $3 billion in development, Motional is also evaluating service expansion into South Korea and other markets based on insights gained from its US rollout.

Monitored Intelligence for South Korea - Jan. 14, 2026


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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.

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Exclusive: Government Spends 1 Trillion Won on Short-Term Coal Storage Roofs

Chosun Ilbo | English | News | Jan. 14, 2026 | Climate Change

The South Korean government has allocated over 1 trillion Korean won for indoorization projects at five coal-fired power plants to install roofs and structures that prevent coal dust from spreading. These indoor coal storage facilities, designed to last over 30 years, are being built at plants with scheduled closures within 2 to 12 years, creating a significant mismatch between investment and facility lifespan. For example, the Hadong Power Plant is receiving 165.7 billion won for indoorization, yet several units will be decommissioned just two to five years after project completion. Other plants including Taean, Dangjin, Boryeong, and Yeongheung are also slated for closure by the mid-2030s.

Experts argue that less costly alternatives such as water spray systems, windbreaks, and dust covers could similarly reduce coal dust emissions, potentially saving tens of billions of won annually. A 2023 Canadian report found that while enclosed structures reduce coal dust by about 90%, water spraying can achieve up to 95% reduction. The indoorization projects, which require complex engineering including pillar-less roofs as high as 20-story buildings, were introduced under the Moon Jae-in administration in 2019 despite questions regarding their feasibility given planned power plant closures.

South Korea stands out among coal phase-out coalition members as the only country pursuing new indoor coal storage projects after 2020, whereas regions like the EU and the Americas with similar 2040 phase-out targets have not initiated such investments. China, with its carbon neutrality target set for 2060, continues to maintain coal storage sealing. The accelerated coal phase-out under the Lee Jae-myung administration has intensified concerns, particularly given coal’s role as a stabilizing energy source amidst renewable energy fluctuations. Critics highlight the inefficiency and taxpayer burden of constructing expensive, temporary infrastructure destined for early dismantlement.

공정위 “쿠팡 영업정지 검토”…입점업체 손실전가 ‘약탈적 사업’ 저격도

Fair Trade Commission Reviews Coupang Suspension of Operations… Targets Passing Losses to Partner Sellers as Predatory Business Practice

Maekyung | Local Language | News | Jan. 14, 2026 | Regulatory Enforcement Actions

The Fair Trade Commission (FTC) Chairman Joo Byung-gi has signaled the potential suspension of Coupang’s operations following a personal information leak, with investigations currently underway by multiple agencies including the Ministry of Science and ICT and the Personal Information Protection Commission. The FTC will assess consumer harm from the data leak and may impose operational suspension if remedial measures are not implemented or consumer harm persists.

In addition to the data breach, the FTC is investigating Coupang for allegedly passing losses from its low-price sales strategy onto partner sellers, labeling this a predatory business practice. There are also probes into accusations of exaggerated discount promotions to Wow membership members and coercion of delivery-app vendors to provide favorable terms. Depending on the findings, Coupang could face fines ranging from tens to hundreds of billions of won, potentially impacting its overall business model.

The FTC is scrutinizing whether Chairman Kim Beom-seok and his family are involved in Coupang’s management, which could lead to designating Kim as the “same person” who effectively controls the company. This status change would subject him to regulatory obligations, which he has avoided by citing his U.S. citizenship and claimed non-involvement of relatives in management. The issue has been reignited by revelations of significant compensation paid to Kim’s brother by Coupang Korea.

Separately, a government official emphasized that the response to Coupang’s personal information leak will be handled independently of trade or diplomatic considerations, clarifying that the Korean government does not discriminate against Coupang as a U.S.-linked company.

김윤덕 국토장관 “고정밀지도, 애플 기준으로 풀 것”…UAM 기체 개발 검토

Minister of Land Kim Yoon-deok says high-precision maps will be based on Apple standards… UAM aircraft development under review

ET News | Local Language | News | Jan. 14, 2026 | UndeterminedTech Development/Adoption

Minister of Land, Infrastructure and Transport Kim Yoon-deok stated that high-precision maps for export would be based on Apple’s standards, highlighting that Apple has domestic servers, unlike Google. The government is using Apple as a precedent to set export standards amid ongoing security discussions involving multiple ministries and security agencies. Minister Kim emphasized that security remains the top priority in these deliberations.

Regarding autonomous driving, Minister Kim expressed concern that South Korea currently lags behind the United States, where Level 4 autonomous vehicles operate safely in urban areas. The ministry plans to significantly expand autonomous vehicle demonstrations this year with 200 vehicles in various environments, aiming for Level 4 commercialization by 2028.

Minister Kim also indicated a potential shift in the urban air mobility (UAM) strategy. Due to certification delays of U.S.-developed UAM aircraft, commercialization by 2028 seems challenging. The government is considering developing UAM aircraft domestically, working with companies like Hyundai Motor and small to medium-sized enterprises, and involving aviation-related agencies in the discussions.

The public sector's UAM commercialization targets are set for after 2028, focusing on tourism, logistics, and emergency medical services. Minister Kim expressed a vision for the Ministry of Land, Infrastructure and Transport to lead in advanced mobility technologies including autonomous driving, UAM, and drones, aiming to make 2026 a year of perceptible change. The ministry will also promote five core policies in 2026: balanced growth, housing stability, transportation innovation, future growth, and public safety.

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