From LIN’s “Administrative Affairs and Law” Series
▲ Attorney Min-goo Kang of LIN LLC
The Ministry of Land, Infrastructure and Transport (MOLIT) is aiming to commercialize fully autonomous vehicles by 2027. However, due to the lack of essential legal infrastructure, progress has stalled. Concerns are rising over the legal framework related to "physical AI"—which refers to AI with a physical embodiment integrated into autonomous vehicles, robots, and drones—is incomplete and scattered across various statutes, necessitating an integrated legal overhaul.
▲ Attorney Min-goo Kang of LIN LLC
The Ministry of Land, Infrastructure and Transport (MOLIT) is aiming to commercialize fully autonomous vehicles by 2027. However, due to the lack of essential legal infrastructure, progress has stalled. Concerns are rising over the legal framework related to "physical AI"—which refers to AI with a physical embodiment integrated into autonomous vehicles, robots, and drones—is incomplete and scattered across various statutes, necessitating an integrated legal overhaul.
■ Level 4+ Autonomous Driving, Legal Vacuum Around Liability
Commercializing fully autonomous driving is no longer a distant vision. Level 3 autonomous taxis are already operating in Gangnam-gu, Seoul, and shuttle buses are running near Cheonggyecheon and in Dongjak-gu. The author has also experienced riding a Level 3.5 autonomous taxi and was pleasantly surprised by the lack of anxiety, yet autonomous vehicle accidents are being reported frequently.
The 'final key' to commercializing Physical AI-based fully autonomous vehicles is establishing an integrated legal framework for accident liability and personal data protection. Regulations concerning accident liability are central to fully autonomous vehicle legislation, as commercialization is impossible without clear regulations on liability, unless the possibility of accidents converges to zero.
For Level 3 autonomous driving, existing Road Traffic Acts and the Compulsory Motor Vehicle Liability Security Act (CMVLSA) can be applied because the driver retains the obligation to monitor the front. However, at Level 4 and above, a 'gray zone' exists where existing laws cannot be directly applied because the obligation of the driver to monitor the front disappears.
The 'final key' to commercializing Physical AI-based fully autonomous vehicles is establishing an integrated legal framework for accident liability and personal data protection. Regulations concerning accident liability are central to fully autonomous vehicle legislation, as commercialization is impossible without clear regulations on liability, unless the possibility of accidents converges to zero.
For Level 3 autonomous driving, existing Road Traffic Acts and the Compulsory Motor Vehicle Liability Security Act (CMVLSA) can be applied because the driver retains the obligation to monitor the front. However, at Level 4 and above, a 'gray zone' exists where existing laws cannot be directly applied because the obligation of the driver to monitor the front disappears.
- If an accident occurs, who’s liable—automakers, software developers, or cloud service providers?
- Does liability fall to the state or local government responsible for managing the road where the accident occurred?Is the liability sole or joint? If joint, what is the percentage of fault?
- Who bears the burden of proof for the defect that caused the accident?
- Does forensic investigation and accident investigation fall to the government, or to the manufacturer or operator?
- Does liability fall to the state or local government responsible for managing the road where the accident occurred?Is the liability sole or joint? If joint, what is the percentage of fault?
- Who bears the burden of proof for the defect that caused the accident?
- Does forensic investigation and accident investigation fall to the government, or to the manufacturer or operator?
Without a legal system that can answer these cascading questions, commercialization of fully autonomous vehicles appears to be impossible.
■ Personal Data Protection vs. Technological Advancement – A Delicate Balance
Another legal challenge is finding a balance between the utilization of pedestrian information recorded during autonomous and personal data protection.
Current law prohibits the utilization of video data recorded during autonomous driving unless it has been subject to de-identification (anonymization or pseudonymization). However, learning through recorded driving information is essential for the technological advancement of Physical AI, but the collection and utilization for learning purposes are currently low due to the time and cost involved in de-identification.
Securing autonomous driving safety through learning is a prerequisite for the commercialization of fully autonomous vehicles. For Level 4+ fully autonomous vehicles, there is a need for discussion on measures that allow the utilization of raw video data based on the premise of strict data protection and management to ensure safety. Accordingly, the role of automotive cybersecurity companies is also expected to become more important.
Current law prohibits the utilization of video data recorded during autonomous driving unless it has been subject to de-identification (anonymization or pseudonymization). However, learning through recorded driving information is essential for the technological advancement of Physical AI, but the collection and utilization for learning purposes are currently low due to the time and cost involved in de-identification.
Securing autonomous driving safety through learning is a prerequisite for the commercialization of fully autonomous vehicles. For Level 4+ fully autonomous vehicles, there is a need for discussion on measures that allow the utilization of raw video data based on the premise of strict data protection and management to ensure safety. Accordingly, the role of automotive cybersecurity companies is also expected to become more important.
■ A Unified Legal Framework Is the 'Final Puzzle Piece'
An integrated approach is necessary for overhauling the legal framework for fully autonomous vehicles, which will serve as the touchstone for Physical AI legislation. The Ministry of Land, Infrastructure and Transport (MOLIT), as the competent authority, should use the Act on the Promotion of and Support for Commercialization of Autonomous Vehicles as the foundation to comprehensively review and overhaul various other related laws.
Furthermore, the voices of industry stakeholders—including automakers, AI developers, insurers, and startups—must be integrated, not just those of regulatory bodies. The necessity for cooperation is also increasing, not only between the public and private sectors but also between manufacturers and autonomous driving (AI) companies, and between insurers and startups.
Given that legislative proposals for the promotion of autonomous vehicles are being continuously introduced and the National AI Commission is gaining policy momentum, now is considered the optimal time to finalize a comprehensive legal structure for the full commercialization of autonomous vehicles.
For further details, please refer to the original article below.
Hankyung LAW&BIZ – Read the original article:
https://www.hankyung.com/article/202507209481i
Furthermore, the voices of industry stakeholders—including automakers, AI developers, insurers, and startups—must be integrated, not just those of regulatory bodies. The necessity for cooperation is also increasing, not only between the public and private sectors but also between manufacturers and autonomous driving (AI) companies, and between insurers and startups.
Given that legislative proposals for the promotion of autonomous vehicles are being continuously introduced and the National AI Commission is gaining policy momentum, now is considered the optimal time to finalize a comprehensive legal structure for the full commercialization of autonomous vehicles.
For further details, please refer to the original article below.
Hankyung LAW&BIZ – Read the original article:
https://www.hankyung.com/article/202507209481i