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Korean Industrial Insight No. 7 of AI, Semiconductors, Batteries and Electric vehicles |
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2024-12-03 |
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Ⅰ. AI INDUSTRY TRENDS
1. Basic Law for AI Bill Passes Science, ICT, Broadcasting, and Communications Committee with Bipartisan Agreement
- Clearing path for year-end processing of AI Basic Law
- Creating a new operator responsibility for high-impact AI
The AI Basic Law has passed the standing committee's bill review subcommittee. As the ruling and opposition parties agreed on key issues of the AI Basic Law, it is evaluated that the green light has been turned on for the enactment of the bill within this year.
On the 21st, the Science, ICT, Broadcasting, and Communications Committee reviewed 19 AI-related bills proposed by ruling and opposition lawmakers at the subcommittee and passed them collectively. Notably, the passed bill introduces risk-based regulations instead of excluding the "prohibited AI" rule, creating a new operator responsibility for "high-impact AI" with a higher risk level than general AI. This “high-impact AI” refers to AI that can have a significant impact on human life, body, health and safety, protection of basic rights, national security and public welfare. The law’s objective is to classify technologies directly related to human life as high-impact AI so that the government can require measures to secure reliability and safety from operators.
The industry has long requested that the concept and definition of "high-impact AI" be clearly defined to prevent it from becoming a regulatory burden. In response to this demand, the legislation allows companies to verify and request confirmation from the Minister of Science and ICT whether their AI technologies fall under the category of high-impact AI. Additionally, provisions have been established to impose fines on operators who fail to fulfill their obligation to notify high-impact AI. Furthermore, the AI Basic Law mandates that global AI big tech companies, such as OpenAI, to designate a domestic representative to communicate with the government when operating in Korea. The law also requires that watermarks be added to images and videos generated by AI.
The AI Basic Law, which was passed by the subcommittee on the same day, has received positive evaluations as it encompasses both responsibilities and promotional grounds. The bill includes grounds for the government to develop AI promotion plans and to seek provisions related to the AI Safety Research Institute and AI associations. It also includes a foundation for initiatives such as boosting investment in AI Data Center (AI DC), supporting regional balanced development, and fostering venture capital.
2. PIPC Discusses AI Risk Improvement Measures
- Seeking balance between technology and privacy
Public-Private Policy Council Holds Meeting to Discuss Regulatory Framework for Biometric Data, Supporting Corporate Self-Regulation
Personal Information Protection Commission (PIPC) is taking steps to explore systematic risk assessment and management strategies for personal data protection in the age of artificial intelligence (AI).
The PIPC is holding the third plenary meeting of the "AI Privacy Public-Private Policy Council" to discuss the draft model for assessing and managing AI privacy risks, as well as proposals for improving the regulatory framework for biometric data. Experts from academia, the legal sector, industry, and civil society will participate in this meeting.
The "AI Privacy Risk Assessment and Management Model" aims to support companies autonomously manage privacy risks by reflecting the characteristics of deep learning technology that relies on large-scale data processing. Developed through discussions in the Policy Council's second subcommittee, this model encompasses risk types and management frameworks that take into account the complexities of AI data processing.
The improvement of the regulatory framework for biometric information will also be a key agenda for discussion. Given the high risk of misuse associated with biometric data such as facial recognition, voice, and fingerprints, which are characterized by their unique identification and their irreversibility, there will be a focus on establishing clear definitions and strengthening processing requirements.
The PIPC plans to reflect feedbacks from this meeting and announce the final versions of the AI Privacy Risk Assessment and Management Model, as well as the regulatory framework for biometric information, next month. This initiative aims to enhance privacy protection while promoting autonomous risk management and the utilization of technology by AI companies.
3. Kakao Presents ‘Ethics for Healthy Interaction Between AI and Users’ at UN Forum
Kakao announced that it attended the “UN Business and Human Rights Forum” in Geneva, Switzerland and presented “ethics for healthy interaction between AI and users”.
This forum is hosted by the UN-affiliated Supreme Representative Office for Human Rights, which is an annual global forum held to strengthen the implementation of the UN Business and Human Rights Implementation Guidelines (UNGP).
About 4,000 internet and IT experts from various countries attended the forum. Kakao participated in the first session of "responsible business behavior in the AI field" on the first day of the event.
The project leader of the group technology ethics team of the ESG committee of Kakao CA Council, who was in charge of the presentation, introduced Kakao's various efforts to protect users' human rights as a technology company. In particular, they announced new provisions added to Kakao AI Ethics and shared activities with the international community to align with the changing technology and society.
The new clause emphasizes the importance of user subjectivity, cautioning against excessive reliance on AI, and strives to prevent uses that may threaten physical, mental, or social safety. This decision was made based on consultations with the Korean Society of Artificial Intelligence Law.
Kakao became the first Korean company to announce the Algorithm Ethics Charter in January 2018. Kakao has made amendments adding three related new provisions, including the inclusion of technology in August 2019, the protection of children and adolescents in July 2020, and the protection of privacy in May 2022.
In July 2022, the "Community Technology Ethics Committee" was established with Kakao and other major affiliates. In March last year, the committee completely revised the existing algorithmic ethics charter and established the "Kakao Group’s Guidelines for Responsible AI," which serve as the group’s AI ethics principles.
The AI ethics principles consist of a total of ten guidelines, including the newly added provision on user subjectivity, as well as principles of inclusivity, transparency, privacy, and user protection.
Professor Byun Soon-yong of ethics education at Seoul National University of Education, and chairman of the Korea Artificial Intelligence Ethics Association, who contributed in establishing new provisions stated, "The new provision emphasizing user identity and safety will serve as a crucial measure to address issues related to AI over-dependence and over-immersion that can occur in AI-based services. Kakao's efforts to strengthen AI ethics will play a significant role in AI services as a practice of social responsibility as a leader in AI."
Ⅱ. SEMICONDUCTOR INDUSTRY TRENDS
1. Samsung Pledges to Take Another Leap Forward at “Starting Point of Semiconductor” … “Creating a New Century”
- Tool-in ceremony for next-generation semiconductor R&D complex in Giheung… KRW 20 trillion investment by 2030
- R&D line set to commence operations by mid-next year, focusing on core future technology research
Samsung Electronics has reaffirmed its commitment to a strong leap forward in the semiconductor business at its Giheung campus, the birthplace of its semiconductor operations, with the introduction of new equipment for its next-generation Research and Development (R&D) facility. The company held a tool-in ceremony for its new semiconductor research and development complex (NRD-K) at its Giheung campus in Yongin, Gyeonggi Province.
The NRD-K is an advanced integrated R&D complex spanning 109,000 square meters, currently under construction by Samsung Electronics to secure a leading position in future semiconductor technologies.
The R&D line is expected to begin full-scale operation in mid-2025, with a total investment of 20 trillion won by 2030.
The facility is expected to be equipped with advanced infrastructure to conduct everything from comprehensive technology research to product development and will serve as a core research center for all semiconductor sectors, including memory, systems, and foundry.
It will introduce cutting-edge production facilities, such as high-resolution extreme ultraviolet (EUV) lithography equipment and new material deposition equipment, for the development of next-generation memory semiconductor.
Additionally, it will implement wafer bonding infrastructure that enables the innovative structures by integrating two wafers, playing a pivotal role in advanced semiconductor technology.
The Giheung campus is a symbolic location where Samsung Electronics commenced its semiconductor business in earnest following the acquisition of Korea Semiconductor in 1974 and the "Tokyo Declaration" by the late founder Lee Byung-chul in 1983.
Starting with the groundbreaking of the production line in 1983, the Giheung campus is the birthplace of the semiconductor success story, having developed the world's first 64-megabit (Mb) DRAM in 1992 and achieving the top position in memory semiconductors in 1993.
Currently, it operates foundry lines for 8-inch and 12-inch wafers, as well as LED lines.
Samsung Electronics plans to create a groundwork for innovation and maximize synergy between technology and organizational capabilities by building NRD-K, the core of future technology research, in Giheung, the birthplace of its semiconductor business, as a key center for future technology research.
Notably, Giheung serves as the heart of South Korea's semiconductor industry, with numerous domestic and international materials, parts, and equipment companies located around Samsung Electronics’ semiconductor plants.
Samsung Electronics aims to transform Giheung into the central hub of the advanced semiconductor industry ecosystem through the establishment of NRD-K, while also expanding R&D collaboration with its partner companies.
Approximately 100 people attended the event, including Vice Chairman Jeon Young-hyun, who leads Samsung Electronics' semiconductor business, key executives from the Device Solutions (DS) division, representatives from equipment partner companies, and employees from the semiconductor research institute.
2. South Korean Minister of Trade, Industry and Energy Holds Meeting with Semiconductor Industry
- Aims to address uncertainties by communicating with the new U.S. administration
The Minister of Trade, Industry and Energy of Korea emphasized the need to communicate with the new U.S. administration to alleviate concerns regarding uncertainties in the domestic semiconductor industry.
The Ministry of Trade, Industry and Energy held a meeting with stakeholders from the semiconductor sector.
Attended key government officials included the Minister of Trade, Industry and Energy, the Director General for Policy Coordination of the Ministry of Economy and Finance, and the Director General of the Bilateral Economic Diplomacy from the Ministry of Foreign Affairs.
From the semiconductor industry, participants included the CEO of SK Hynix, the Vice President of Samsung Electronics, the CEO of Dongjin Semichem, the CEO of Wonik IPS, the CEO of PSK, and the Vice Chairman of the Korea Semiconductor Industry Association.
Semiconductor industry representatives expressed concerns about the increasing uncertainties in the global semiconductor supply chain and changes in investment conditions following the inauguration of the second Trump administration.
They specifically urged the government to actively support stable investment and exports to the U.S.
The Minister of Trade, Industry and Energy stated, "We will actively support to continue and enhance the complementary cooperation between South Korea and the U.S. as semiconductor allies." He emphasized, "The U.S. is a key market for semiconductors and a critical investment destination for our companies. Therefore, we must closely monitor any policy changes in the U.S. and prepare thoroughly for all possible scenarios."
He added, "We will strive to alleviate concerns about uncertainties by actively engaging in close communication with the new U.S. administration through various channels."
This meeting took place amid growing concerns regarding the potential introduction of universal tariffs and the possibility of reduced semiconductor investment subsidies following the election of former President Donald Trump in the U.S. presidential election.
3. Overseas Technology Leaks, Primarily in Semiconductors and Displays
The number of cases where individuals have been caught attempting to leak key domestic industrial technologies, such as displays and batteries, has been on the rise each year. Most of the leaked technologies have reportedly ended up in China.
The National Investigation Office of Korean National Police Agency reported that from January to October this year, there have been 25 cases of individuals involved in overseas technology leaks referred to prosecutors. Among these, 10 cases pertain to national core technologies related to national security, including semiconductors and batteries.
National core technologies, such as semiconductors, automobiles, and secondary batteries, hold significant technological and economic value. If these technologies are leaked abroad, they can adversely affect national security and the economy. Since the establishment of the National Investigation Office in 2021, where only one case of core technology leakage was reported, the number has risen to four cases in 2022 and two cases last year, indicating a consistent upward trend.
By country, China accounted for the highest number of technology leakage incidents, totaling 18. This was followed by the United States with 3 cases, and Germany, Vietnam, Iran, and Japan each with 1 case. More than half of the leaked technologies involved displays, with 8 cases, and semiconductors, with 7 cases.
The methods employed for leaking technology varied. The most common approaches included taking pictures of the victim company's data or leaking information via email, with each method accounting for 5 cases. Additionally, technologies were leaked through social networking services (3 cases), USB storage (3 cases), printing (2 cases), and personnel leakage (2 cases).
In September and October of this year, the Seoul Metropolitan Police apprehended two individuals, including the CEO and the director of the Chinese semiconductor company CHJS, for leaking and utilizing Samsung Electronics' 20nm DRAM memory production process technology, classified as a national core technology. These individuals have since been referred to prosecutors while in custody. In October, two former employees of a domestic display company were also arrested by the Gwangju Police for capturing trade secrets and subsequently leaking them to China for monetary compensation.
The police reported that they have recovered approximately 4.9 billion won from the proceeds of six overseas technology leakage cases this year. A police official stated, "We are working to increase dedicated investigative personnel in order to eradicate overseas technology leakage crimes."
Ⅲ. BATTERY INDUSTRY TREND
1. K-Battery Industry Faces Production Slowdown, R&D Investment Hits Record High… Striving for Technological Supremacy
- K-battery firms see production rates plummet
- Meanwhile, R&D investment reaches all-time high
- Focusing on securing technological advantages amid prolonged industry slump"
The operational rates of major domestic battery companies reported a simultaneous decline in the third quarter of this year. This trend is due to the prolonged demand slowdown, referred to as chasm, in the electric vehicle market. Although the extended market downturn is causing production facilities to lose momentum, domestic companies are investing billions of won in research and development (R&D) to prepare for future market leadership.
According to the industry, South Korea's top battery manufacturers—LG Energy Solution, Samsung SDI, and SK On—significantly reduced their production rates in the third quarter of this year.
LG Energy Solution's average production facility utilization rate in the third quarter fell to 59.8%, representing a double-digit decrease compared to the same period last year, which was 72.9%. The utilization rates for battery production facilities across electric vehicles, energy storage systems (ESS), and small applications all experienced declines.
Samsung SDI, which only discloses cumulative annual figures for small batteries, also reported a decline in utilization rates. The average utilization rate dropped to 68%, down from 77% the previous year. Similarly, SK On's average utilization rate for its domestic and international large battery production facilities fell significantly to 46.2%, compared to 94.9% in the same period last year.
Experts say that the decline in production rates among battery manufacturers was anticipated. Professor Moon Hak-hoon from Osan University’s Future Electric Vehicle Department stated, "Given the unfavorable conditions in the electric vehicle market, such results were expected." He further noted, "Concerns about the battery industry are spreading with the return of Trump, and this trend may continue for the foreseeable future."
Despite these challenges, domestic battery companies are fully committed to securing technological capabilities for future market dominance. Even amid the prolonged chasm, they are investing heavily in R&D and focusing on achieving a technological superiority.
The combined R&D investment by domestic top three battery companies amounts to 1.9919 trillion won this year, reflecting a 25.4% increase compared to two years ago. Industry sources describe this as the largest investment to date since the emergence of the electric vehicle market. In terms of individual contributions, LG Energy Solution invested 795.3 billion won by the third quarter, Samsung SDI 986.1 billion won, and SK On 210.5 billion won to research and development.
The three companies have identified "quality enhancement" as a key focus for their ongoing research and development efforts. LG Energy Solution is concentrating on diversifying its high-quality portfolio with the addition of lithium iron phosphate (LFP) batteries and high-voltage mid-nickel, alongside its existing products. The company has also completed the development of dry electrode technology, which reduces battery manufacturing costs by up to 30%, with plans for commercialization by 2028. They are also expanding their focus on non-electric vehicle businesses, such as energy storage systems (ESS).
Samsung SDI continues their research on next-generation products that enhance energy density and stability, such as solid-state batteries. The company plans to commercialize solid-state batteries by 2027. These batteries replace traditional liquid electrolytes with solid ones, significantly reducing the risk of fire. Additionally, they are set to begin mass production of 46mm cylindrical batteries early next year.
SK On is also focusing on the development of next-generation batteries, including long-range electric vehicle batteries and solid-state batteries. In July, the company declared a "crisis management" initiative aimed at cost reduction and operational efficiency, but it continues to invest significantly in R&D.
2. K-Battery R&D Forum Held by Korea Battery Industry Association
- Attracts over 250 industry professionals
- Discuss strengthening R&D capabilities in value chain and overcoming challenges
The Korea Battery Industry Association and the Korea Planning & Evaluation Institute of Industrial Technology (KEIT) have announced the opening of the "2024 K-Battery Research and Development (R&D)" forum.
Running until the 20th, the forum is themed "Strategies for Securing Cutting-Edge Technologies for Diversifying Battery Portfolios." Over 250 experts from academia, industry, research institutions, and government are participating to discuss tailored R&D capability enhancement and strategies for overcoming the electric vehicle market chasm.
The head of LG Chem's research lab emphasized the need for challenging R&D in batteries and battery materials for the e-mobility era during his keynote speech.
During the panel discussion led by Jaebum Park, Senior Principal Researcher at POSCO Research Institute, topics included efforts to overcome the market chasm, requirements to the government, public institutions, and associations for the advancement of the battery industry, as well as strategies for promoting collaboration between supply and demand companies.
Son Sam-ick, Master at Hyundai Motor Company, discussed the role of automotive companies as demand-side players and strategies for overcoming the electric vehicle chasm. Kwak Jaeyeon, in charge of MI Strategy at LG Energy Solution, presented successful case studies from China and potential scenarios for overcoming the chasm in the U.S. and Europe.
Park Dae-woon, Managing Director at Daejoo Electronic Materials, and Shin Jae-ho, Manager at Dongwon Systems, highlighted the importance of collaboration through joint research and development from the perspective of material companies, emphasizing the need for co-growth and communication among the government, supply companies, and demand companies. Meanwhile, Lee Jae-hoon, Vice President at MinTech, discussed the need for improvements and innovations in battery manufacturing processes.
EcoPro BM and KETI presented the achievements of their advanced lithium-based next-generation battery performance enhancement project, which includes the development of cathode materials and organic polymer composite powder manufacturing technology for solid-state batteries, as well as process technologies for raw materials for sulfide-based solid electrolytes. Newture also showcased the results of their project on developing flame-retardant separators based on high-heat-resistant fibers.
On the 20th, there will be presentations on the trends and outlook of the electric vehicle and battery industries in the U.S. and Europe following the inauguration of the Trump’s second administration. Additionally, support programs from organizations assisting the overseas expansion of K-Battery will be introduced.
A related official of the Battery Industry Association stated, "The K-Battery R&D Forum is expected to serve as a platform for discussing key issues in the battery industry from the perspective of R&D practitioners. By presenting support directions from the government, public institutions, and associations for the advancement of the battery industry, we anticipate that it will evolve into a venue for discussing not only research but also ways for industrial development."
3. LG Energy Solution Expands Business Beyond Battery Manufacturing to ‘Energy Circulation’
LG Energy Solution is expanding its business beyond mere battery manufacturing to become a central player in energy circulation ecosystem. With the goal of becoming a leading Total Solution Provider, the company is broadening its operations to include software and service sectors, while also focusing on establishing a sustainable energy ecosystem.
LG Energy Solution has recently set a goal to more than double its revenue by 2028 while securing stable profitability and cash generation capabilities. As part of its mid- to long-term strategy, the company plans to reduce its reliance on the electric vehicle (EV) sector and continuously increase the share of its energy storage system (ESS) business. Additionally, it aims to expand its capabilities in new applications with high growth potential, such as urban air mobility (UAM), maritime, and robotics, thereby creating a robust business structure that can withstand market fluctuations.
Within the EV sector, LG Energy Solution is focusing on diversifying its products and customer base. It aims to enhance its competitiveness not only with high-nickel premium batteries but also in the affordable market segment, including LFP, LMFP, and high-voltage mid-nickel batteries. In the cylindrical battery category, the company plans to expand its customer portfolio to include traditional automakers through the 46-series, while actively considering new form factors tailored to meet customer demands.
LG Energy Solution plans to stabilize its revenue structure by expanding into software and service areas. Building on the establishment of a Battery-as-a-Service (BaaS) ecosystem, the company aims to broaden its service offerings, such as battery lease, rental, and recycling. Additionally, it intends to increase the share of its Energy-as-a-Service (EaaS) business, creating a business model that contributes to energy stabilization and circulation.
The company is fully committed to securing leadership in next-generation battery technology. For the case of solid-state batteries, the company plans to lead the market with "no-anode" products that exclude lithium and graphite-based anode products. Additionally, it aims to accelerate mass production of low-cost, high-power products utilizing semi-solid batteries, as well as lightweight aviation products using lithium metal. The company also intends to establish a competitive edge over competitors through dry electrode processing technology, securing cost competitiveness while achieving superior energy density and manufacturability.
The CEO of LG Energy Solution stated, "We have established the global standards in the battery industry and will continue to uphold our position as an industry leader. If we support each other as pacemakers and join hands in our journey, I’m confident that we will encounter an even more remarkable and brighter future ahead."
Ⅵ. ELECTRIC VEHICLE INDUSTRY TRENDS
1. Hyundai Unveils ‘Ioniq 9’ for the First Time
- Unveils at LA Goldstein House
- Longest wheelbase among Hyundai's passenger vehicle lineup. Impressive 532 km range on a single charge
Hyundai Motor Company has officially unveiled the Ioniq 9, a large electric SUV, at an event in Los Angeles, marking its world premiere.
The Ioniq 9 is the third model to be built on Hyundai's dedicated electric vehicle platform, E-GMP, following the Ioniq 5 (compact SUV) and the Ioniq 6 (midsize sedan). Despite concerns regarding the electric vehicle market chasm, this launch demonstrates Hyundai's commitment to electrification. The event featured José Munoz, the newly appointed COO of Hyundai, making his first public announcement.
The Ioniq 9 is Hyundai Motor's first three-row electric SUV. With refined technology and marketability, it is expected to establish itself as the flagship model representing the Ioniq electric brand. Hyundai has introduced this flagship electric vehicle to represent its brand in a challenging environment for EV market. This move comes at a time when the upcoming U.S. administration is placing greater emphasis on internal combustion engines, further dampening the outlook for electric vehicles.
The company stated that the unveiling of this new model is intended to demonstrate its commitment to the necessary transition to electrification. Jae-Hoon Jang, CEO of Hyundai Motor Company, stated, "We will strengthen our leadership in the global electric vehicle market," adding, “We have expressed our determination and confidence in this transition to electrification.” Despite the increased uncertainty in the electric vehicle sector, the company has signaled its intention to confront these challenges head-on.
The Ioniq 9 is designed to accommodate four passengers in the first and second rows, allowing for a comfortable resting position. The seats feature a massage function powered by vibrating motors. In the second row, swivel seats can rotate 180 degrees to face the third row, and 6:4 split folding seat can fold 60% of the seat. The luggage space behind the second row is 908L, which is large enough to fit four golf bags or four Boston bags. Additionally, the center console, primarily used by the front-row passengers, can be moved back by up to 190mm enabling second-row access.
Equipped with a battery capacity of 110.3kWh, it can travel up to 532 km on a single charge (with 19-inch wheels and 2WD, based on internal measurements). It features a 400/800V multi ultra-fast charging system that allows for charging from 10% to 80% in just 24 minutes when using a 350kW charger.
2. Kia Accelerates 'Electric Vehicle Popularization' with Global EV3 Launch
- First regional EV day in Taiwan on the 14th
- EV3 set to launch in Southeast Asia next year
- Over 10,000 units sold in Korea
- Anticipated success in Europe with recognized product value
Kia is expanding into Europe and the Asia-Pacific region following its success in the domestic market, strategically targeting the growing demand for electric vehicles (EVs) with its compact electric SUV, the EV3. Kia plans to launch the EV3 in Southeast Asia, starting with Taiwan, in early next year. Additionally, the company aims to increase EV sales by introducing mid-sized models such as the EV4 and EV5 in succession.
According to industry, Kia held the "EV Day Asia-Pacific" event in Taipei, Taiwan, on the 14th (local time), where it unveiled its future EV lineup, including the EV3, to the Southeast Asian market. It also showcased the EV3 concept, the flagship electric SUV EV9, and the purpose-built vehicle (PBV) PV5 concept.
This marks the first time Kia has held an EV Day event outside of Korea. Following last year's Global EV Day event held in Korea, the company is now conducting a region-specific EV Day to target the Southeast Asian market.
Kia plans to launch the EV3 in the Asia-Pacific market, including Southeast Asia, next year. This follows its initial introduction in the domestic market last July, as the company expands its reach into Europe and Southeast Asia.
Designed with the goal of "popularization," the EV3 is experiencing a steady increase in sales. Since its domestic launch in July, the vehicle has achieved cumulative sales of 10,106 units within just four months. In Europe, where sales officially started this month, the company has set an annual sales target of approximately 60,000 units.
The EV3 has already gained recognition for its product competitiveness in Europe. Recently, it was named a finalist for the "European Car of the Year," a prestigious recognition that only seven out of 42 models could achieve. Even before its official launch, the EV3 has begun to garner various awards, including "Golden Steering Wheel 2024" award in Germany.
Starting next year, Kia plans to continue its EV popularization efforts with the launch of the EV3, followed by the EV4 and EV5 in both domestic and international markets. Despite the challenging market conditions, the company aims to navigate this difficult period through rapid new vehicle launches and enhanced customer experiences.
Through this, Kia aims to achieve its goal of selling 1.6 million EVs annually by 2030. The Managing Director of Kia's Asia-Pacific region stated, "The current EV market is changing rapidly and holds high uncertainty, so we are not flooding the market with large quantities of electric vehicles. However, we will prioritize a customer-centric approach to introduce more environmentally friendly electric vehicles."
3. “Priced Around 30 Million Won Affordable Electric Vehicle Arriving”… Chinese EVs Ready to ‘Invade’ Korea
- BYD officially launching in Korea in January 2025
- Global EV sales double that of Tesla’s
- “New models to be released annually”
China's BYD, the world’s leading electric vehicle manufacturer, is set to officially enter the South Korean market in January next year with the launch of an electric vehicle priced around KRW 30 million. Additionally, Geely's premium electric vehicle brand, Zeekr, plans to select dealers and open showrooms in South Korea by the second quarter of next year. Also, Chinese electric vehicle startup Leapmotor is also preparing to enter Korean market with a compact electric passenger car. The influx of Chinese EVs, which have proven their technological capabilities and cost competitiveness, has begun.
The CEO of BYD's Asia-Pacific Automotive Sales Division stated in an interview on the 20th at the company's headquarters in Shenzhen, China, that "We will officially launch our brand in the South Korean market in January next year." He also emphasized, "We will not limit our sales to specific models and will introduce new models to the South Korean market annually."
The BYD vehicles that are to be introduced in South Korea include the sedan "Seal," the SUV "Atto 3," and the compact hatchback "Dolphin." These EVs are priced between the low KRW 30 million range and the mid to high KRW 40 million range, based on Japanese sales prices.
Founded as a battery company in 1995, BYD entered the automotive sector in 2003 by acquiring Xi'an Tsinchuan Auto in China. In 2022, BYD became the first global automaker to announce the cessation of internal combustion engine vehicle production. Just two years after its transition to EVs, the company achieved the highest market share in the global EV market last year.
By the third quarter of this year, BYD's sales of EVs (including battery electric vehicles and plug-in hybrids) reached approximately 2.61 million units, more than double of Tesla’s (around 1.29 million units), which holds the second-largest market share. In the third quarter alone, BYD reported revenues of 201.1 billion yuan (approximately KRW 39 trillion), surpassing Tesla in terms of sales as well.
The chairman of the Korea Automobile & Mobility Association stated, "If BYD launches EV models at various price points in the domestic market, it will pose a significant threat to the South Korean automotive industry."
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KIPO and the Korean Ministry of Science and ICT (MSIT) held the ‘Global ICT Standards Conference 2024’.(News Letter No. 542)
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Korean Industrial Insight No. 9 of AI, Semiconductors, Batteries and Electric vehicles in Chinese
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