The South Korean government, through the Ministry of Land, Infrastructure and Transport, has announced that Hyundai Motor and Samsung Fire Insurance will collaborate on the Gwangju autonomous driving demonstration city project. This initiative aims to foster development in autonomous driving technology through a 'K-autonomous driving cooperation model' that supports partnerships in vehicle manufacturing and insurance services. By doing so, the government intends to alleviate the previous challenges faced by autonomous vehicle developers who had to individually handle vehicle production, insurance, and service operations, thereby allowing them to focus solely on technology development.

Hyundai has been tasked with modifying its Ioniq 5 vehicles to meet Level 4 autonomous driving standards, which require minimal human intervention on most roads. Additionally, it will provide maintenance and development personnel to support the project. Meanwhile, Samsung Fire Insurance will offer an insurance compensation limit of approximately 10 billion won per accident, with an annual total limit of around 30 billion won. Furthermore, Hyundai will also serve as a transportation platform provider through its demand-responsive transport system named 'Shuttle', where it will oversee vehicle tracking, dispatch management, and operation data analysis.

The Ministry is set to select three autonomous driving technology companies by the end of April to engage in significant technological collaboration with the newly appointed partners. Park Jun-hyung, Director of the Ministry's Mobility and Automotive Bureau, emphasized the aim of creating a cohesive autonomous driving industry ecosystem in South Korea, integrating vehicles, systems, services, and insurance, which is envisioned as a flagship model for the K-autonomous driving collaboration framework.