Ministry of Trade Industry and Resources

The Ministry of Trade, Industry and Resources (MOTIR, Minister JK Kim) announced on February 6, 2026, that it will invest KRW 464.5 billion this year in R&D and infrastructure-building programs for the automotive sector.

Korea’s automotive exports reached a record high of USD 72.0 billion in 2025 despite intense global competition, marking a third consecutive year above $70.0 billion. With greater trade uncertainty, rapid advances in AI and autonomous driving technologies, and tighter environmental regulations, securing both technological and price competitiveness has become increasingly critical.
MOTIR will invest KRW 382.7 billion in 2026 in core-technology R&D for autonomous driving and electric and hydrogen vehicles. Of this amount, KRW 104.4 billion will be allocated to 44 new projects.

Within the funding for new projects, MOTIR plans to invest KRW 49.5 billion in 14 autonomous driving projects (34 subprojects) to support the shift from rule-based systems to End-to-End (E2E) AI autonomous driving. Led by the AI Future Vehicle M.AX Alliance, the projects focus on early commercialization of AI-based future vehicles. They will advance multimodal E2E-AI technology for situational awareness in complex driving conditions, develop and demonstrate a national standards-based SDV system, and build an open-source AI-SDV platform and integrated drive chassis modules tailored to global OEMs, while supporting localization of automotive semiconductors. These efforts aim to build self-reliance in core autonomous driving technologies and strengthen supply-chain stability across the full development-to-production cycle through phased measures.

MOTIR will also step up support to accelerate development of world-class next-generation vehicle technologies, allocating KRW 54.8 billion to 30 new projects (55 subprojects) in the electric and hydrogen vehicle sector. Key areas include a highly integrated gallium nitride (GaN)-based power conversion system to improve power density, a Cell to Chassis (CTC) battery system to increase energy density and streamline the manufacturing process, and an Extended Range Electric Vehicle (EREV) powertrain system with a driving range of more than 1,500 km. 

Commercial vehicles remain less competitive than passenger cars in global markets. To close that gap, MOTIR will fund development of heavy-duty hydrogen trucks equipped with liquid hydrogen storage systems and hydrogen engine-based commercial vehicles. MOTIR will also promote localization of load-distribution actuators for commercial vehicles.

This year, MOTIR will provide KRW 7.0 billion for two demand-linked projects to demonstrate and commercialize R&D output as market-ready products. The projects will be selected through an open call jointly prepared by local governments and regional firms. Local governments will utilize demand for public vehicles to support on-road testing and connect the resulting products to public procurement.

MOTIR will also provide KRW 81.8 billion for infrastructure-building programs. In line with the region-specific specialization strategy under the K-Mobility Global Leadership Strategy (November 2025), MOTIR will allocate KRW 11.6 billion to seven new infrastructure-building projects to help auto parts suppliers strengthen their capabilities.

For the new projects and programs announced on February 6, 2026, applicants can find the full notice and download application forms on the Industrial Technology R&D Researcher Support System (srome.keit.re.kr) for R&D projects, or on the Korea Institute for Advancement of Technology (KIAT) website (www.kiat.or.kr) for infrastructure-building programs.