S. Korea struggles with UAM commercialization with no homegrown technologies

Supernal SA-2

As urban air mobility (UAM) emerges as a next-generation transportation solution, countries around the world are engaged in fierce competition to commercialize flying taxis. While China’s EHang has already achieved the world’s first type certification, Joby Aviation is set to take to the skies of Dubai in 2026, Europe’s Volocopter prepares for demonstration runs at the Paris Olympics this July, South Korean companies have been slow to localize key UAM technologies. The industry says that government policy is too focused on building infrastructure and operational systems and that more investment should be made in developing key UAM components such as batteries.

UAM, small electric vertical take-off and landing (eVTOL) aircraft, represents a new mode of transport for both goods and passengers through urban skies. Unlike helicopters, UAM vehicles are quieter and emit no exhaust, making them ideal for city environments.

Since last year, South Korea’s Ministry of Land, Infrastructure, and Transport has been conducting the Korean UAM demo project in Goheung, South Jeolla Province. The project aims to evaluate the integrated operational capabilities of six consortiums by the end of the year, with plans to begin a second phase of demonstrations along the Gyeongin Ara Waterway as early as October.

Several consortiums such as Korean Air-Incheon International Airport, Hyundai Motor-KT and MintAir-Lotte Innovate-Lotte Rental, have completed the first phase of the project. From August, additional consortiums such as UAMitra, K-UAM Dream, as well as UAM Future, will begin their first-phase demonstrations. Notably, only the Korean Air-Incheon International Airport consortium and the Hyundai Motor-KT consortium are using domestic vehicles for these tests.

The K-UAM Dream and the UAM Future, which are expected to pass the first phase of the demonstration, are partnering with U.S. UAM airframe manufacturers Joby Aviation and Archer Aviation, respectively.

Concerns are growing that South Korea may fall further behind major global players in the UAM sector. Hyundai Motor Group’s UAM subsidiary, Supernal, is still in its early stages, lacking official flight records, unlike Joby Aviation, which boasts 10,000 flight hours. Similarly, Hanwha Systems’ 210 billion won ($150) investment in Overair has seen setbacks due to delays in obtaining type certification from the U.S. Federal Aviation Administration (FAA).

A significant bottleneck in South Korea’s UAM development is the lack of investment in battery technology, crucial for the performance and commercialization of UAM vehicles. Industry experts emphasize that the government’s focus on infrastructure has resulted in insufficient policy support and investment in key components like batteries. They highlight the contrast with the UAE, which is actively attracting global companies for UAM commercialization, whereas South Korea’s financial resources and budget allocation areas remain limited.

“Without resolving the battery issues, the reality of UAM commercialization is unattainable,” said an industry insider. “Both government and private sectors need to invest aggressively to overcome these challenges.”

In response, the government asserts its commitment to research and development of core technologies for UAM. The Ministry of Land, Infrastructure, and Transport said it plans to invest 100.7 billion in developing core technologies for the safe operation of UAM, with market growth anticipated post-2030.