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News Letter

Mobility Legal Updates_[Regulation]

The Lee Jae-myung administration has been promoting regulatory redesign and expanding governmental support to foster high-tech and high value-added industries in the land and transportation sectors. Among its presidential campaign pledges were the reexamination of autonomous driving regulations to lay the groundwork for real-world testing, as well as the establishment of a support system for pilot deployment and commercialization to accelerate the early deployment of cooperative autonomous driving technologies. In line with this policy direction, several new legislative bills have been proposed in the National Assembly to support the autonomous vehicle industry. This newsletter introduces and summarizes the key contents of the proposed legislation. 1. Special Act on Supporting the Development of the Autonomous Mobility Industry Ecosystem (Bill No. 10766, proposed by Rep. Lee Eon-joo and 9 others) A. Background and Purpose This bill was proposed on June 12, 2025, by Rep. Lee Eon-joo and nine other members of the National Assembly and was referred to the Trade, Industry, Energy, SMEs and Startups Committee on June 13, 2025. In light of the concern that the lack of a strategic government support system across the entire industry—such as overlapping inter-ministerial regulations and insufficient infrastructure for data-based testing, evaluation, and certification—has hindered the development of a robust autonomous mobility ecosystem, this bill was proposed with the aim of establishing a comprehensive framework for the strategic promotion of the autonomous mobility industry. The key provisions are as follows: B. Mandatory Establishment of a Master Plan (Article 5) The Minister of Trade, Industry and Energy is required to establish and implement a master plan for the development and promotion of the autonomous mobility industry ecosystem every five years and to review its progress every two years. The plan must include the current state and future demand projections, strategies to promote technology development and commercialization, plans for autonomous mobility industrial zones, and initiatives to stabilize supply chains and promote localization. C. Establishment of the Autonomous Mobility Promotion Agency (Article 8) The bill proposes the establishment of a legal entity named the Autonomous Mobility Promotion Agency to carry out projects related to the autonomous mobility industry. The agency will support, inter alia, technology development, dissemination of technological achievements, international cooperation, and overseas expansion. Autonomous mobility service providers defined under the bill are required to submit data on the operation and testing of autonomous vehicles—including operational history, such as autonomous driving routes and driving distances; records of transitions between autonomous and manual driving modes; and information concerning system errors and abnormal events—to the agency (Article 13). D. Designation and Support for Core Components (Article 9) The Minister of Trade, Industry and Energy may designate semiconductors, sensors, communication devices, software, platform technologies, and AI training datasets, etc. related to autonomous mobility as core components. Entities developing or producing such components may receive support for research, market entry, and streamlined administrative procedures. They may also qualify for tax benefits. E. Designation and Support for Industrial Zones (Article 10) The Minister may designate autonomous mobility industrial zones and, within such zones, may support the establishment and operation of infrastructure such as pilot testing centers and data centers related to autonomous mobility; provide financial and fiscal assistance to facilitate the industrialization of relevant technologies; implement measures to streamline or expedite administrative procedures; and promote the sharing and utilization of data related to autonomous mobility. 2. Act on the Road Operation, etc. of Autonomous Vehicles (Bill No. 11003, proposed by Rep. Yang Bu-nam and 11 others) A. Background and Purpose This bill was proposed on June 23, 2025, by Rep. Yang Bu-nam and 11 others and referred to the Public Administration and Security Committee on June 24, 2025. This bill aims to establish an institutional framework for shaping a road traffic environment conducive to the commercialization of fully autonomous vehicles. The key provisions are as follow: B. Definitions of Full Autonomous Driving and Operational Design Domain (Article 2) This bill introduces new definitions for full autonomous driving and operational design domain. Specifically, full autonomous driving is defined as "operation in which all driving tasks—including steering, braking, and other control functions, as well as any necessary interventions in fallback scenarios—are performed entirely by the autonomous driving system, without a human driver, under all or limited traffic safety conditions." The operational design domain is defined as "the set of conditions—such as road, weather, time, and geographical features—under which the autonomous driving system can function normally and safely." C. Operation Permits (Article 10) Currently, fully autonomous vehicles that operate without a driver and carry only passengers cannot be formally operated on public roads because applicable safety standards under Article 29(1) of the Motor Vehicle Management Act have not yet been established. As a result, self-certification pursuant to Article 30(1) of the same Act is not feasible. Accordingly, such vehicles may only be operated within designated pilot operation zones upon receiving approval from the Minister of Land, Infrastructure and Transport, as provided under Article 11 of the Autonomous Vehicles Act and Article 12 of the Regulation on the Promotion of and Support for Commercialization of Autonomous Vehicles. However, under this bill, autonomous vehicles that have obtained conformity approval may be granted an operational permit by the Commissioner General of the National Police Agency. Since fully autonomous vehicles fall within the definition of “autonomous vehicles” under the bill, such operational permits may serve as a legal basis for expanding their use to general public roads. 3. Partial Amendment to the Act on Restriction on Special Cases Concerning Taxation (Bill No. 10885, proposed by Representative Jang Cheol-min and 11 others) A. Background and Purpose This bill was proposed on June 17, 2025, by Representative Jang Cheol-min and 11 other members of the National Assembly, and was referred to the Strategy and Finance Committee on June 18, 2025. The purpose of the bill is to encourage investment in next-generation mobility by granting tax credits for investments in R&D facilities related to future mobility technologies, equivalent to the level of benefits currently provided for semiconductor-related investments. B. Tax Credit for Facility Investment in the Future Mobility Sector (Partial Amendment to Article 24 of the Act on Restriction on Special Cases Concerning Taxation) Small and medium-sized enterprises (SMEs) that invest by December 31, 2029, in facilities for the commercialization of national strategic technologies in the future mobility sector, and national strategic technology research and development facilities in the future mobility sector —with the specific details to be prescribed by Presidential Decree— shall be entitled to a tax credit—deductible from corporate income tax for the relevant fiscal year—in the amount of: (i) 30% of the investment, for small and medium-sized enterprises (SMEs); (ii) 25% of the investment, for companies that were previously classified as SMEs and invest within three fiscal years from the fiscal year in which they ceased to be so classified; and (iii) 20% of the investment, for all other companies. 4. Implications In line with the inauguration of the Lee Jae-myung administration, legislative efforts to foster the autonomous vehicle industry are expected to continue. Currently, the Act on the Promotion of and Support for the Commercialization of Autonomous Vehicles (the “Autonomous Vehicles Act”) provides the legal framework for the introduction, expansion, and safe operation of autonomous vehicles. However, as the existing law is primarily focused on the evaluation of safety and conformity and on regulatory aspects of the operational environment, the newly proposed legislative bills are expected to serve a complementary function by contributing to the development of the broader industrial ecosystem if enacted. If the Special Act on Supporting the Development of the Autonomous Mobility Industry Ecosystem is enacted, it would serve as a foundational legal basis for the establishment of basic plans and policy support specifically for the “autonomous mobility industry,” a concept not explicitly addressed in the existing Autonomous Vehicles Act. As such, the Special Act is anticipated to function as a framework statute for the formulation of autonomous vehicle policies and support measures. Meanwhile, the use of data for AI training in autonomous driving systems must comply with the Personal Information Protection Act. According to guidance issued by the Personal Information Protection Commission—such as the Guidelines on the Processing of Publicly Available Personal Information for AI Development and Services and the Guidelines on the Protection and Utilization of Personal Video Information Captured by Mobile Video Devices—the collection of personal video data using mobile video devices in public places for business purposes is, in principle, restricted. However, such collection is permitted if it falls under any of the subparagraphs of Article 15(1) of the Act (Article 25-2(1)(1)), and in the context of AI development and services, the “legitimate interest” under Article 15(1)(6)1 may serve as a valid legal basis. In this regard, the proposed Special Act provides that the Minister of Trade, Industry and Energy may establish and implement policies to promote the collection, analysis, distribution, and use of autonomous mobility data, and is required to put in place the necessary institutional infrastructure to support such efforts (Article 14). Therefore, once the proposed Special Act is enacted and the relevant policy and institutional foundations are established, it is expected to more clearly legitimize the processing of data for AI training and services under the “legitimate interest” basis. Furthermore, as previously discussed, if the proposed Act on the Road Operation, etc. of Autonomous Vehicles is passed, it would provide a general legal basis for the operation of fully autonomous vehicles. Under the current regime, such vehicles may only operate with a temporary permit for testing purposes or within designated pilot operation zones under the Autonomous Vehicles Act. The proposed legislation would enable full autonomous vehicles to be lawfully operated on general public roads. Taken together, the legislative bills recently introduced to promote the autonomous vehicle industry, if enacted, are likely to have a significant impact on the advancement of the related industries. Accordingly, close attention should be paid to the legislative review and approval process going forward. 1. Where it is necessary for the legitimate interests of the personal data controller and such interests clearly override the rights of the data subject. This shall apply only when the legitimate interests of the controller are closely related to the processing purpose and do not go beyond a reasonable extent. *** LIN has extensive experience in providing advisory and litigation services in the mobility industry, particularly in areas such as administrative regulations and patent and trade secret disputes related to motor vehicles. Our Mobility Team consists of attorneys and experts with a distinctive interest and passion for automobiles. Should you wish to learn more about this newsletter or have any other inquiries, please do not hesitate to contact our firm’s Mobility Team. 배태준 변호사 (tjbae@law-lin.com, 010-8237-8123) 강민구 변호사 (mgkang@law-lin.com, 010-3907-9217) 김호연 변호사 (hykim@law-lin.com, 02-3477-6300) 정한준 변호사 (hjjung@law-lin.com, 02-3477-8695) 오정필 변호사 (jpoh@law-lin.com, 02-3477-8695)

2025.07.24