In 2024, Korea’s Ministry of Trade, Industry and Energy (MOTIE) announced a major investment of 4,645 billion KRW to advance the nation’s automotive sector. This funding is directed towards research and development (R&D) in autonomous driving, electric vehicles (EVs), and hydrogen vehicle core technologies. The policy aims to strengthen Korea’s global competitiveness amid rising trade uncertainties, rapid AI and autonomous technology progress, and stricter environmental regulations. The investment also supports commercialization by leveraging local government demand for public vehicles and enhancing regional automotive ecosystems.
The policy impacts automakers, parts suppliers, software and AI companies, and regional governments. Of the total investment, 3,827 billion KRW is allocated to core technology R&D, with 1,044 billion KRW supporting 44 new projects. In autonomous driving, 495 billion KRW will fund 14 new projects focused on E2E-AI technology, national standard-based SDV systems, and vehicle semiconductor localization. The M.AX Alliance, comprising over 70 companies, will lead collaborative efforts for early commercialization of AI-powered vehicles. Electric and hydrogen vehicle R&D includes 548 billion KRW for 30 new projects, such as high-density power conversion systems and extended-range EV drivetrains.
Implementation begins June 6, 2024, with project details and application forms available on the official R&D and infrastructure support websites. Regional governments and local companies can jointly propose projects under an open call, with research outcomes to be commercialized through public vehicle procurement. Additionally, 818 billion KRW is allocated for infrastructure development, including 116 billion KRW for seven new regional support projects. The policy aims to gradually enhance self-reliance in core technologies and stabilize supply chains across the automotive sector.
Frequently asked questions include: Who can apply for these R&D projects? Eligible applicants include automakers, parts suppliers, software and AI firms, and regional governments. How will research outcomes be commercialized? Local governments will provide demonstration opportunities and purchase successful products for public vehicle fleets. Where can detailed information and forms be found? The official R&D and infrastructure support websites will publish all relevant details from June 6, 2024.
Korea’s targeted investment in autonomous, electric, and hydrogen vehicle R&D reflects a proactive strategy to secure technological leadership and supply chain stability. The inclusion of regional governments and local businesses in project planning and commercialization is a notable step toward ecosystem development. The M.AX Alliance’s collaborative model is expected to foster rapid innovation in AI mobility. Overall, the policy is well-aligned with global trends and positions Korea to capitalize on future automotive market opportunities.