In this blog post, we will examine the need for autonomous vehicles, as well as South Korea’s current laws and regulations regarding them, liability for accidents and insurance, passenger transportation and employment issues, safety standards, and performance certification systems. We will then assess whether it is still too early for the full-scale commercialization of autonomous vehicles.

Commercialization of Autonomous Vehicles: Is Technological Advancement Alone Enough?

In the future automotive market, autonomous vehicles have long been predicted to bring about a major transformation in the automotive industry. At one point, forecasts that autonomous vehicles would be commercialized on a large scale in the near future were widespread, and global interest surged significantly as various companies, including Google, actively developed autonomous driving technology. In South Korea as well, the government has been promoting the development of related technologies and the establishment of regulatory frameworks, including designating autonomous vehicles as a key ICT research and development priority. However, contrary to initial expectations, the commercialization of autonomous vehicles faces various challenges—not only technical issues but also legal and regulatory hurdles, as well as concerns regarding social acceptability. In particular, as the legal foundation for actual commercialization—beyond mere testing and pilot operations—is now being established, it is difficult to simply assess the situation as “laws and regulations are not yet in place,” as was the case in the past. Currently, the “Act on the Promotion and Support of the Commercialization of Autonomous Vehicles” is in effect in South Korea; this law aims to promote the commercialization of autonomous vehicles by creating and supporting the operational infrastructure necessary for their introduction, widespread adoption, and safe operation.

The Need for Autonomous Vehicles

Autonomous driving can be categorized into several levels based on the degree of automation and the driver’s role. Internationally, it is generally classified from Level 0 to Level 5 according to the SAE’s driving automation standards, progressing from stages focused on driver-assistance features to stages where the system takes over driving under specific conditions, and finally to the stage of full autonomy, where the system handles driving in all situations. At the driver-assistance stage, the system provides partial support for tasks such as speed control and lane keeping, but the driver must maintain control of the vehicle at all times. At the partial automation stage, the system can handle both steering and acceleration/deceleration, but the driver must continuously monitor the driving situation. At higher levels of automation, the system may take over driving under specific conditions or within designated operating areas, and continuous monitoring by the driver may not be required; the goal of fully autonomous driving is for the vehicle to recognize its driving environment and operate on its own without human intervention. One of the most important reasons autonomous vehicles are attracting attention is their potential to reduce casualties from traffic accidents. Since conventional traffic accidents are closely linked to human factors—such as driver inattention or errors in judgment—if vehicles can continuously perceive their surroundings and make decisions based on driving conditions, this could help reduce accidents caused by driver error. Furthermore, autonomous driving technology has the potential to reduce traffic congestion by leveraging information exchanged between vehicles and efficiently managing traffic flow, thereby alleviating the burden on drivers and improving transportation accessibility for people with limited mobility. Furthermore, entrusting driving to the system offers the convenience of allowing passengers to engage in other activities while on the move, and advancements in autonomous driving technology could become a key factor in transforming future transportation systems. Therefore, while there is little disagreement that autonomous vehicles are a crucial technology for future society, the development of the technology and its safe and stable operation in the real world must be viewed as separate issues.

Challenges in the Commercialization of Autonomous Vehicles at Present

However, there are still many issues that must be resolved before autonomous vehicles can be fully commercialized. In the past, the primary reason cited for deeming the introduction of autonomous vehicles in South Korea premature was the lack of sufficiently established laws and regulations. Indeed, at that time, it was difficult to clearly regulate the operation of autonomous vehicles using only existing automotive laws, such as the Road Traffic Act and the Motor Vehicle Management Act. However, the situation has changed significantly. South Korea has enacted a separate “Act on the Promotion and Support of the Commercialization of Autonomous Vehicles” and is gradually establishing systems to support the testing and commercialization of autonomous vehicles, including pilot operation zones, special provisions for for-hire transportation, special safety standards, performance certification, and conformity approval. Therefore, the current issue is not the complete absence of legislation, but rather whether the existing laws and systems are sufficient to support the expansion of fully autonomous driving and to what extent they need to be refined to keep pace with technological advancements.
First, a key issue is how to define legal liability regarding the operation of autonomous vehicles. Since existing traffic laws were developed on the premise that humans directly drive vehicles, it is difficult to resolve all issues solely based on the traditional concept of a “driver” in situations where a human does not directly control the vehicle’s steering, acceleration, or deceleration. This is because when autonomous vehicles operate on roads, responsibilities may be divided among various parties, such as the driver, vehicle owner, vehicle manufacturer, and autonomous driving system developer. Accordingly, it is necessary to clearly establish what obligations each party bears during the operation of an autonomous vehicle and who should be held liable when system defects or management issues arise. While the current existence of relevant laws represents a significant departure from the past, as the level of autonomy increases, determining whether the cause of an accident lies in human driving error or in a problem with the vehicle or software will become increasingly important.
Second, liability and insurance issues in the event of personal injury or property damage during vehicle operation remain significant challenges. In vehicles driven by humans, liability can be determined primarily based on whether the driver was at fault; however, when an autonomous driving system is in control, the cause of an accident must be analyzed in light of various factors, such as the system’s decision-making, mechanical defects in the vehicle, software errors, operating conditions, and vehicle maintenance issues. In particular, as vehicles approach full autonomy, situations where passengers do not directly control the vehicle’s operation will increase; therefore, determining who bears liability in the event of an accident becomes even more critical. To address these issues, the current legal framework for autonomous vehicles includes various measures, such as insurance and safety provisions, and as autonomous vehicles are commercialized, these liability and insurance systems must be continuously refined to keep pace with technological advancements. Furthermore, performance certification and suitability approval systems have been established to institutionally manage the performance and operating environment of autonomous vehicles. Under current law, even autonomous vehicles for which no specific automotive safety standards exist can have their performance—including safety—certified. Additionally, to operate a performance-certified autonomous vehicle in a specific manner, a suitability approval must be obtained to verify that the vehicle’s model is compatible with the operating environment—such as roads, weather, and communications—in the intended operating area.
Third, how to reconcile the complex interests of various groups involved in transportation—such as insurance companies and passenger transport companies like taxi and bus operators—is also a critical issue. From the perspective of insurance companies that handle liability and personal injury insurance related to automobile accidents, the advancement of autonomous driving technology could reduce the risk of accidents, potentially leading to changes in the existing automobile insurance market. Conversely, it is difficult to conclude that the role of insurance will disappear entirely, as new risks associated with autonomous vehicles—such as software errors, system hacking, and product defects—may emerge that cannot be adequately covered by existing auto insurance alone. Furthermore, for passenger transport companies such as taxi and bus operators, autonomous driving technology may replace the role of drivers, potentially affecting the employment of existing transportation workers. In the past, these issues might have been viewed simply as a reduction in jobs for drivers; however, in reality, it is highly likely that the emergence of new transportation services will occur alongside changes in the existing transportation industry. Therefore, as autonomous vehicles become more widespread, it is necessary to develop normative and harmonious solutions—such as establishing transitional regulations or providing new job roles and employment opportunities—while taking into account issues related to the occupational freedom of existing transportation workers. To achieve this, it will be necessary to gather sufficient input through public hearings and social discussions involving directly affected stakeholders.

Is a cautious approach to commercialization still necessary even now that the regulatory framework has been established?

Currently, regarding autonomous vehicles, various government agencies—led by the Ministry of Land, Infrastructure, and Transport—are promoting technological development, ensuring safety, supporting commercialization, and refining the regulatory framework. In particular, South Korea has enacted a separate law to promote and support the commercialization of autonomous vehicles, and the relevant enforcement decrees and regulations have also been established. The current law stipulates special provisions not only for the pilot operation of autonomous vehicles but also for the paid transportation of passengers, freight transportation businesses, vehicle safety standards, and intelligent transportation systems and road infrastructure. In particular, within designated pilot operation zones, a system has been established that allows for the paid transportation of passengers using autonomous vehicles—provided they are not commercial vehicles—subject to certain requirements and permits. This represents a significant shift from the past, when autonomous vehicles lacked a legal basis and could not be utilized for general transportation services.
Furthermore, systems aimed at ensuring the safety and commercialization of autonomous vehicles are being refined. The current Autonomous Vehicle Act includes provisions for performance certification of autonomous vehicles and allows for the certification of safety and other performance aspects even for autonomous vehicles that do not meet existing automotive safety standards. For vehicles that have received performance certification, a suitability approval system is applied to assess whether they are compatible with the environmental conditions—such as roads, weather, and communications—in the intended operating area. This system is significant in that it aims to ensure safety not only by evaluating the technical performance of autonomous vehicles but also by taking into account the environmental conditions of the actual operating areas.
Recently, detailed safety and management systems related to autonomous vehicles have also been continuously established. The Ministry of Land, Infrastructure, and Transport has established a system to designate dedicated agencies for ensuring the safety of autonomous vehicles and supporting their commercialization, and has also enacted safety measures regarding video information collected by autonomous vehicles. This demonstrates that the commercialization of autonomous vehicles is evolving beyond the simple issue of putting vehicles on the road to a stage that addresses a variety of issues, including the information collected by the vehicles, the secure management of personal and video data, and ensuring system safety.
The international regulatory environment has also changed significantly from the past. While there were many criticisms in the past that laws and international regulations were lagging behind the pace of technological development in autonomous vehicles, regulatory frameworks for autonomous driving systems are now being solidified internationally. In discussions regarding automotive regulations at the UNECE, international regulations have been established to evaluate and manage the safety of autonomous driving systems, and a new international regulatory framework has recently been adopted to allow the introduction of autonomous driving systems operating without driver supervision on public roads. Key elements addressed in this process include safety management systems, testing and verification, safety validation, and continuous monitoring following actual operation.
Therefore, it is inappropriate to simply assess the introduction of autonomous vehicles in South Korea today as “premature because the necessary laws and systems are not yet in place.” This is because a separate law aimed at the commercialization of autonomous vehicles is already in effect, and systems for actual operation and commercialization—such as pilot operation zones, special provisions for for-hire transportation, performance certification, and conformity approval—have been established. However, this does not mean that all legal and social issues surrounding autonomous vehicles have been resolved. Rather, as the level of autonomous driving advances, issues such as how to determine liability in the event of an accident, the extent to which manufacturers and software developers should be held liable, how to reform the insurance system, how to protect data collected by vehicles, how to manage cybersecurity issues, and how to address changes in employment for transportation industry workers may become even more critical. Ultimately, the key challenge today is not whether to block the introduction of autonomous vehicles altogether, but rather how quickly we can refine laws and systems to ensure they remain safe and predictable as the technology advances. For autonomous vehicles to establish themselves as a mode of transportation in the future, legal and social frameworks must evolve in tandem with technological development; in particular, as we move toward fully autonomous driving, it is crucial to establish clear standards regarding accident liability and safety assurance. Therefore, rather than concluding that the introduction of autonomous vehicles in South Korea is premature at this stage, it would be more reasonable to pursue phased commercialization based on existing frameworks while continuously refining laws and regulations to adapt to technological and societal changes.