Seoul conveys concern to Washington over connected vehicle regulations

Korea has raised concerns that an inquiry and possible regulations by the United States related to "connected vehicle" technology from China may harm the auto industry.

Visitors look at a Xiaomi SU7 car on display during the Auto China 2024 in Beijing on April 28, 2024. [AP/YONHAP]

Korea has raised concerns over the U.S. government's inquiry into the automotive use of "connected vehicle" technologies from China and possible regulation in light of potential national security threats.

Seoul recently sent a statement to the U.S. Department of Commerce conveying the detrimental impact related rules would have on the overall auto industry, which universally uses Chinese technology, while also requesting a detailed definition of connected vehicles and enough time for companies to inspect and restructure their supply chains.

Also called "smart cars," the vehicles are connected to the internet for navigation programs and other online services via mobile data networks, with the ability to transmit data to devices both inside and outside the car.

"The Korean automotive industry expresses concerns about the broad scope of the investigation into connected vehicle supply chains, uncertainties surrounding the scope of potential regulatory targets and the timing of implementation, all of which may lead to significant burdens on the industry," the Korean government said in the statement, according to multiple local media reports.

The call comes after the Biden administration announced on Feb. 29 that it is commencing an inquiry into the possible involvement of "foreign adversaries" in supply chains for information and communications technologies and services for connected vehicles, which could result in the collection of sensitive data about U.S. citizens and infrastructure that may be sent back to China.

Russia, North Korea, Iran, Cuba and Venezuela also fall under the designation, but the investigation mainly targets vehicles with technologies from China as the others have no current connection to the export of cars to the United States.

There are over 55,000 patents related to connected vehicles in the world, 35 percent of which are from China.

Seoul also requested that the U.S. government's investigation and subsequent measures affecting supply chains for connected vehicles focus on "components and services that pose significant risks to national security."

"The [local] automotive industry is concerned that the current scope of the investigation is highly likely to result in the imposition of regulatory measures, which could significantly undermine the predictability and stability of business operations," the government said.

Hyundai Motor and Kia also sent letters to Washington, emphasizing that "hardware that does not allow remote access or may not affect the connected vehicle should be excluded from the definition."

"Data in the United States, if collected from vehicles with the consent of the owner, is not transmitted, stored or analyzed in countries identified as foreign adversaries," it added. "We think the new rule should grant temporary authorization to engage in otherwise prohibited transactions thereunder to avoid supply chain disruptions or other unintended consequences if automakers can show that the use of a certain product or service does not pose any threat to the national security of the United States."

Hyundai Motor in late April signed an agreement with China's Baidu to cooperate in the development of technologies for connected cars.

BY SARAH CHEA [chea.sarah@joongang.co.kr]