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  • Draft for Special Act on Fostering and Supporting the Future Automobile Industry
    • Competent Ministry : Ministry of Trade, Industry and Energy
    • Advance Publication of Legislation : 2021-07-02
    • Opinion Submission Deadline : 2021-07-16
Reasons for Proposal

Reason for proposal

The future automobile-related industry including environment-friendly automobiles under the “Act on the Promotion of the Development and Popularization of Environment-Friendly Automobiles” and self-driving cars under the Automobile Management Act and Act on the Encouragement and Support of Commercialization of Self-Driving Cars is the core power to lead Korea’s automobile industry in the future.

For the continuous development of such future automobile industry, an organically connected support system is required in various aspects including development of technology, cultivation of talents, generation of demand, conversion of business, etc., and there is a need to designate areas where inter-department connection and cooperation are easy in the future automobile industry as clusters and to concentrate support in such clusters.

Nonetheless, systematic cultivation and support of the future automobile industry is limited because the basis of support for the future automobile industry is dispersed in many acts such as “Act on the Promotion of the Development and Popularization of Environment-Friendly Automobiles,” “Automobile Management Act,” and “Act on the Encouragement and Support of Commercialization of Self-Driving Cars,” etc.; moreover, the basis of support for new-type future automobiles including connected cars (automobiles with improved safety and convenience by sending, receiving, and using information by IT technology) is insufficient.

Therefore, the draft is aimed at improving the safety of the people and convenience in life by encouraging the conversion of the current automobile industry into the future automobile industry through the construction of an organically connected support system based on the master plan for the cultivation and support of the future automobile industry and by seeking the systematic development of the future automobile industry based on the synergy effect of industrial concentration in future automobile industry clusters with the establishment of the Special Act on Fostering and Supporting the Future Automobile Industry.

Main content

 A. Future automobiles are defined to include new-concept future automobiles including connected cars, etc. as well as environment-friendly automobiles and self-driving cars under the current acts (Article 2 of draft).

B. The Minister of Trade, Industry and Energy shall establish a master plan for the cultivation and support of the future automobile industry every three (3) years (Article 5 of draft).

C. The Future Automobile Industry Committee is established under the Minister of Trade, Industry and Energy in order to review important matters for the cultivation and support of the future automobile industry (Article 6 of draft).

D. The basis of configuration and operation of the Future Automobile Industry Development Committee is provided to collect the opinions of the industry and experts on important matters for the cultivation and support of the future automobile industry (Article 7 of draft).

E. The basis for constructing and supporting the foundation is provided for the development and encouragement of future automobile industry including R&D of future automobiles and generation of demand (Articles 8 through 19 of draft).

F. The Minister of Trade, Industry and Energy shall establish an integrated plan for the designation and development of industrial clusters for the concentrated support of future automobile industry (Article 20 of draft).

G. The basis of designation and development of future automobile industry clusters is provided, and special cases of future automobile industry clusters for tax relief are prescribed (Articles 21 through 26 of draft).

H. Various regulatory special cases and the basis of regulatory improvement including first review system of patent application and special cases of remote steering are provided to encourage the development of future automobile technology (Articles 27 through 33 of draft).

I. A regulation review committee is established under the Future Automobile Industry Committee to review important matters on regulatory special cases and regulatory improvement of future automobile industry (Article 34 of draft).

Major Provisions

Article 10 of draft

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