Hyundai Motor Group, KAI Aim to Commercialize AAM Aircraft by 2034

Joint development of future air mobility

KAI turns away from solo development

Aircraft shape and development concept to be redesigned from scratch

Joint venture under discussion after cooperation pact

Hyundai Motor Group and Korea Aerospace Industries Ltd., or KAI, are reviving South Korea’s advanced air mobility, or AAM, project through a joint effort. The business had made little progress for some time, but the two companies have now drawn up a roadmap targeting commercialization in 2034. Their partnership could also help restart momentum in developing a Korean urban air mobility, or UAM, model.

Designing the aircraft from scratch

As of June 25, Hyundai Motor Group and KAI were discussing plans to develop an AAM aircraft capable of winning certification from the Federal Aviation Administration and South Korea’s Ministry of Land, Infrastructure and Transport by 2034, according to industry officials. The project’s scope is also set to widen beyond urban passenger transportation to a dual-use civil and military platform for cargo transport, emergency patient transfers to island areas, and military supply and reconnaissance missions.

The companies signed a memorandum of understanding in May for joint AAM development and have since been discussing cooperation measures, including the establishment of a joint venture. AAM is a broader concept than conventional UAM, encompassing not only urban passenger transport but also cargo services and military operations.

KAI changed its in-house AAM aircraft configuration seven times from 2023 and repeatedly conducted flight tests, wind tunnel tests and computational fluid dynamics analysis, but it failed to achieve the performance it wanted. After agreeing to work with Hyundai Motor Group, the two sides decided not to stick with the existing design and instead redesign the aircraft from the ground up. Under the plan, they aim to finalize the joint aircraft configuration by 2027 and apply for type certification with US and South Korean authorities around 2028. The goal is commercialization in 2034 after a certification process that typically takes about six years.

That schedule is two to three years later than KAI’s earlier standalone target of 2031 to 2032. The redesign of the aircraft shape alone is expected to take about a year, forcing the company to push back commercialization.

Hyundai Motor Group to handle powertrain, KAI the aircraft

The collaboration is intended to help both companies overcome limitations they faced in pursuing the project independently. KAI saw four preliminary feasibility reviews for a national AAM research-and-development project fall through, increasing the burden of developing the aircraft on its own. Developing a single aircraft model requires about 800 billion won ($579 million), underscoring the limits of a solo approach.

Hyundai Motor Group had also pursued independent development through Supernal, its US AAM unit, but delays in development and certification led to organizational restructuring and workforce reductions. At one point, speculation emerged that Hyundai might withdraw from the AAM business.

Having learned from those setbacks, the companies chose to collaborate. They plan to combine Hyundai Motor Group’s electrified powertrain technology and global business capabilities with KAI’s expertise in aircraft systems development and experience in flight testing and certification. KAI is also reviewing a plan to use low-earth-orbit communications satellites it is developing with the Ministry of Science and ICT and the Electronics and Telecommunications Research Institute for AAM control and communications networks.

The aircraft will use an electrified powertrain and be based on eVTOL, or electric vertical takeoff and landing, technology.

“A shift from separate development efforts by domestic companies to a joint development model should improve the odds of success for K-UAM,” an industry official said. “This collaboration could become an important turning point for South Korea’s AAM industry.”

Song Jun-young and Shin Jeong-eun, Korea Economic Daily reporters ssong@hankyung.com