Like many of you, my day has pivoted to tech and especially the EV and Smart sectors. I am fortunate as Korea has traditionally invested in innovation and in addition to the major Groups like Hyundai, Samsung. SK and LG it is now a growing hub for startups and SME companies transitioning to mobility.
Like many of you, too, I ponder on widespread EVs acceptance as well as the high costs associated with AV and smart technologies. Funding as a kick-starter is key.
Stepping back…
As many in the US are drilling into Biden’s $2 trillion infrastructure plan, Korea, too, is willing to spend 2.7 trillion won (US$11.7 billion) this year as part of its digital New Deal program. South Korea aims to foster new tech industries for job creation.
The Korean government last year unveiled their ambitious stimulus projects, under its Korean New Deal initiative, amounting to 160 trillion won ( US$140 billion)
Monies will be spent on developing technologies based on data, networks and artificial intelligence (AI), which includes developing new technologies, such as self-driving cars and smart factories.
The government added that additional money will be spent on projects such as the digitalization of road infrastructure that is tied to self-driving technology, too.
For the automotive industry and what I see and am engaged daily is Korea hopes to pivot from decades of ICE driven exports to a mobility and EV economy.
As an example, the government has proposed that up to 500 auto parts manufacturers turn into future car-related companies ---funded substantially with government assistance.
As in many countries the South Korean government is not only stepping into aid consumer grade electric vehicles manufacturing, but also similar plans are in place for electric trucks and e-buses working in the delivery and public transit sectors.
Consumer, business and public EV’s subsidies aside ( about $10,000 for the new Hyundai Ioniq 5), one goal for Korea is to cut their overall prices of EVs—and that means batteries and some form of battery leasing.
Currently, studies show EV battery programs can reduce vehicle upfront cost (some say by 30-40%) and battery can separately be rented out or leased, dividing the cost of owning and maintaining over a vehicle’s lifetime.
In Korea the plan is to introduce electric vehicle battery leases so that electric vehicle buyers’ initial purchase cost can be halved.
As a starter program battery leasing will first look at electric taxis and trucks. Pilot projects by Hyundai and others will be launched this year.
As I began this chat, much of my day in working with OEMs, Suppliers and end-users has pivoted to the tech and especially the EV sector. I am so fortunate as many are transiting to mobility—from electric buses, to e-delivery and robo-taxis.
My role is building collaborations and sound partnerships as well as moving projects forward…
I am open to your input, specific questions, requests and inquires. I’d like to hear your thoughts, too.
Feel free to reach out via email, Text or Message… and we can set up a Zoom.
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