Socar and Krafton Forge 150 Billion Won Partnership to Lead Autonomous Driving in South Korea

In a significant move set to accelerate the adoption of autonomous driving in South Korea, car-sharing giant Socar has joined forces with gaming powerhouse Krafton. The two companies announced their intention to establish a joint venture, backed by an initial investment of 150 billion won, aiming to create the nation's largest autonomous driving business entity.

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Socar's goal is not just to complete autonomous driving technology but to fundamentally change users' travel habits and quality of life by successfully commercializing it.

This collaboration leverages Socar's deep expertise in mobility platform operations and its vast repository of real-world driving data. With approximately 20,000 car-sharing vehicles generating over 1.1 million kilometers of driving data daily, Socar is uniquely positioned to provide the essential data fuel for training advanced AI algorithms. Krafton's investment of 65 billion won makes it the third-largest shareholder in Socar, signaling a strong commitment to this burgeoning field.

The new venture, slated for establishment in May, will be led by Socar CEO Park Jae-wook, who also heads Socar's future mobility task force. The company plans a phased approach to autonomous driving services, beginning with Level 2 driver-assistance features in its car-sharing fleet and eventually progressing to Level 4 autonomous capabilities in specific operational domains. This strategy allows for gradual market penetration and technological refinement.

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We judged that Socar is the most competitive business operator when autonomous driving services are commercialized, as Socar has experience in managing vehicles and drivers on a large scale through the past 'Tada' service.

Krafton's involvement, particularly its interest in "physical AI" research using the data generated, highlights the potential for cross-industry innovation. The gaming company's CEO, Kim Chang-han, expressed confidence in Socar's ability to lead the commercialization of autonomous driving, citing their experience in managing large-scale vehicle and driver operations through services like 'Tada'. This partnership represents a powerful synergy between mobility data and AI development, promising to reshape the future of transportation in South Korea.

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The new entity will expand its business step-by-step, starting with Level 2 car-sharing services that assist the driver and progressing to Level 4 services where autonomous driving is possible without driver intervention in specific areas or conditions.