Strengthening the Competitiveness of the Future Automotive Industry: 'Automotive Convergence Alliance Development Strategy Forum' Held

The Ministry of Trade, Industry and Energy (Minister Joo Hyung-hwan) held the 'Automotive Convergence Alliance Development Strategy Forum' on the 17th to strengthen the competitiveness of Korea's future automotive industry.

Last December, the Ministry of Trade, Industry and Energy declared a “transition to a convergence-centered automotive industry policy” to consolidate the capabilities of domestic related companies in response to the paradigm shift in the future automotive market, and launched the Automotive Convergence Alliance, an alliance of companies related to the future automotive industry.

The Automotive Convergence Alliance was initially launched with six companies, including Hyundai Motor, LG Electronics, KT, Naver, Hanwha Advanced Materials, and Obigo, but has expanded to about 50 companies thanks to the enthusiastic response from companies looking to enter the future automotive market.

At this forum, not only the originally participating companies but also various domestic firms from sectors such as electronics, electrical engineering, semiconductors, telecommunications, software, and materials gathered to hold in-depth discussions on the creation of a future automotive convergence ecosystem.

Just as smart cars became the biggest topic at the recent Consumer Electronics Show (CES), the paradigm of the automotive industry is rapidly shifting through convergence with other industries such as IT. However, despite possessing world-class automotive and related industries like IT, Korea is currently assessed as lagging behind Germany, the United States, and Japan in future automotive competitiveness due to a lack of inter-industry collaboration.

These doorsIn order to overcome challenges, the government has been pursuing the "promotion of convergence between key industries and IT/SW" as a core task, and launched the "Automotive Convergence Alliance" last December to create a platform for promoting convergence among private companies.

At the forum, companies interested in the three fields representing future automobiles—electronics, emotional appeal, and greening—attended and discussed business models for inter-company cooperation.

In the electrification subcommittee, representatives from leading domestic electronics companies such as Samsung Electronics and LG Electronics, as well as firms in the semiconductor, IT, and software sectors, participated to discuss cooperation measures regarding active safety, driving convenience, and information convergence necessary for autonomous driving.

In the Sensitivity Division, the three major telecommunications companies (STK, KT, LG U+) and IT/software companies such as Naver and Obigo attended to discuss cooperation plans regarding services such as cloud and connectivity that link automobiles and communication technologies.

In the Greening Subcommittee, Lotte Chemical, GS Caltex, LG Hausis, and others attended to discuss cooperation plans in the materials sector for automotive lightweighting, and companies interested in power-based components and infrastructure, such as electric and hydrogen vehicles, also attended and exchanged opinions.

In addition, experts from the insurance sector (Korea Insurance Development Institute) and the legal sector (Kim & Chang Law Firm) attended the forum and expressed their interest. Furthermore, major domestic automakers such as Hyundai Motor and SsangYong, as well as key parts suppliers like Hyundai Mobis and Mando, participated in all three divisions, demonstrating that established automotive companies also intend to enhance the competitiveness of future automobiles through convergence with other industries.

The Ministry of Trade, Industry and Energy is committed to providing full support to realize collaborative business models between companies in different fields through the Automotive Convergence Alliance.
In addition, a policy subcommittee including experts in relevant fields will be newly established within the Convergence Alliance to discuss laws, systems, and standards for the commercialization of future automobiles, and the findings will be reflected in policy.

An official from the Ministry of Trade, Industry and Energy stated, “Just as there was recent discussion in the U.S. regarding whether Google’s self-driving system could be recognized as a driver, we believe there are many areas that the government, companies, and experts need to review and prepare together for the future commercialization of autonomous vehicles,” adding, “We plan to gather opinions from experts in a wider range of fields by establishing a new policy subcommittee.”