South Korea

Joongang Ilbo | English | News | Nov. 28, 2025 | Regulation

South Korea plans to establish large-scale autonomous driving test-bed cities to advance its autonomous vehicle technology from Level 3 (conditional automation) to Level 4 (high automation). The Ministry of Land, Infrastructure and Transport announced a government initiative to create a citywide autonomous driving test zone by 2026, deploying around 100 autonomous vehicles in the area. Currently, autonomous vehicles operate only in limited pilot zones across 47 areas rather than full urban environments.

The government aims to overhaul existing regulations including allowing the use of raw video footage for R&D, which is expected to improve recognition accuracy by up to 25 percent. Presently, laws require video footage to be pseudonymized, hindering data utility. Additionally, a new legal role called the autonomous vehicle safety manager will be introduced to clearly define criminal and administrative liabilities for Level 4 driverless vehicles, covering incidents such as signal breaches and hit-and-runs.

South Korea faces strong competition from the United States and China, where more extensive real-world testing and capital investments have accelerated industry advancement. In the global autonomous driving sector, 14 of the top 20 companies are based in the US, four in China, and only one each in Britain and Korea. To address potential conflicts with existing taxi operators, a tripartite consultation body will be formed involving the government, autonomous driving firms, and taxi representatives. The government aims to commercialize Level 4 autonomous vehicles by 2027.

中 글로벌 조선시장 독주…韓·美 '마스가' 동맹으로 판 바꾼다

Digital Daily | Local Language | News | Nov. 28, 2025 | Shifting Geopolitical Alliances

As of the third quarter of 2025, China holds a dominant 56% share of global shipbuilding orders, significantly ahead of South Korea's 22%. China has not only maintained its volume advantage due to low labor costs but has also penetrated high-value-added and eco-friendly ship sectors traditionally led by Korea. In 2024, China surpassed Korea in orders for very large crude carriers (VLCCs), large container ships, and LNG carriers, with China commanding 72.4% of orders versus Korea's 27%. China also leads in eco-friendly ships powered by LNG or methanol fuel, holding 54.2% of orders compared to Korea's 27.4% through October 2025.

China’s growth is underpinned by strong state-level R&D investment, production automation, and a dual approach involving both 71 state-owned and 241 private shipyards. State-owned shipyards in China are catching up to Korean technology, while private yards produce large volumes of small- and mid-sized low-value vessels. By October 2025, the combined order backlog amounted to about 3,900 vessels. Conversely, the U.S. shipbuilding industry has declined significantly; despite 414 shipyards nationwide, only 19 have a commercial ship order backlog, while the Chinese navy continues to expand rapidly, projected to reach 425 vessels by 2030 compared to the U.S. Navy’s 294.

In response, South Korea and the U.S. are collaborating through the MASGA project to counter China's dominance. They plan to form a working group to enhance cooperation in commercial shipbuilding, nuclear submarines, and warships, potentially involving security ministries. Recent agreements include U.S. approval of South Korean construction of nuclear submarines and high-level U.S. Navy engagements with major Korean shipbuilders like HD Hyundai Heavy Industries. South Korea aims to leverage MASGA to enter the U.S. market, strengthen alliances, and export shipbuilding technology to build a "K-shipbuilding alliance network" that includes countries such as Saudi Arabia, Brazil, and India.

The long-term goal is to create a broad alliance of nations equipped with Korean shipbuilding technology, shifting the competitive dynamic from China versus Korea to China versus a coalition of K-shipbuilding allied countries. This strategy is intended to counter China's volume advantages and maintain the competitiveness of Korea's shipbuilding industry on the global stage.

길 잃은 홈플러스…"정부 나서달라" 호소

ZD Net Korea | Local Language | News | Nov. 28, 2025 | Regulation

Homeplus's initial attempt to find a new owner failed as no bids were submitted by the deadline, despite letters of intent from Harex Infotech and Snowmad. Both companies did not submit final bids, largely due to inadequate financial capacity. The Seoul Bankruptcy Court plans to consult with stakeholders and discuss next steps, including preparing a rehabilitation plan or pursuing a second M&A re-bidding.

Harex Infotech and Snowmad's financial instability was a major barrier. Homeplus has a liquidation value of 3.7 trillion won and liabilities of 2.9 trillion won, requiring substantial cash even if loans are secured. Harex reported significant losses and capital erosion, while Snowmad had limited liquid assets and considerable net losses, making them unable to meet the cash requirements for acquisition.

Political circles and the Homeplus union have urged government intervention, highlighting the broad economic impact on employees, suppliers, and tenant stores. NongHyup, a proposed acquirer, has declined due to its own financial weaknesses. Lawmakers and union representatives stressed that Homeplus's situation affects around 100,000 workers, 1,800 supplier companies, and 8,000 tenant stores, calling for active government and party involvement, including mobilization of public restructuring institutions and emergency funding support.

Tenant store owners expressed distress over the ongoing uncertainty, store closures, and revenue losses, urging the government to provide emergency operating funds and facilitate a stable and reasonable M&A process rather than a rushed, unstable deal. The situation remains critical with a looming deadline for rehabilitation planning by the end of next month.