Park Su-ryon

The author is the industry news desk head at the JoongAng Ilbo.

Toyota, which actually began in the early 20th century as a loom manufacturer, launched a new venture on Sept. 25. On the site of an old factory in Shizuoka Prefecture, about 100 kilometers from Tokyo, the company unveiled what it has named Woven City.

This experimental town, where people actually live, is designed as a living mobility laboratory where life and technology weave together. Self-driving electric vehicles, AI robots and drones all operate independently while collecting data. The city runs on carbon-free energy from hydrogen and solar power. Underground roads are used by autonomous logistics robots that process waste and deliver mail.



About 300 residents, including Toyota employees, their families and innovators from large corporations, research institutes and startups have already moved in. The company expects the population to grow to 2,000.

Why build such a city? Toyota describes it as an attempt at "kakezan," or multiplication. The company hopes to combine its accumulated expertise in manufacturing, the software capabilities of its subsidiary Woven by Toyota and the specialized knowledge of innovators to create new social and technological value.

Akio Toyoda, Toyota's chairman and third-generation leader of the founding family, explained: "One cannot do kakezan alone. Partner companies are essential." Since introducing the Woven City concept five years ago, Toyoda has sought participants for the experiment and continues to recruit them. Current partners include a climate control company developing technology to reduce airborne pollen, a coffee company researching how caffeine influences creativity and productivity and an education firm using data-driven methods.

Whether the project succeeds or fails is uncertain. But Toyota knows it must try. The company has fallen behind American and Chinese rivals in electric vehicles and autonomous driving. Remaining complacent as the global leader in auto sales could leave Toyota without a future foothold. What matters is that a Japanese company is willing to take such risks, and that Japan provides an environment to support them.

Japan revised its Road Traffic Act in 2023 to allow fully driverless vehicles under certain conditions, legalizing Level 4 autonomous driving. Woven City is one of several government-backed testing grounds across the country. Facing a rapidly aging and declining population, Japan has begun treating autonomous driving as essential infrastructure. On the other hand, Korea, despite having numerous capable companies, has spent years repeating limited pilot programs without broader deployment.

However, the Korean government has now recently announced a similar vision. On Sept. 16, President Lee Jae Myung's administration included "Future Mobility and K-AI City" among its 123 national policy goals. The Ministry of Land, Infrastructure and Transport is the lead agency, the same ministry that halted the Tada mobility startup five years ago. Whether it can emulate Toyota's initiative remains uncertain.

For Korea to build an AI city attractive to private companies, the government must act not as a heavy-handed overseer but as a careful supporter. Firms should be given the lead to design such projects. Authorities should provide special legislation to exempt them from existing regulations, fast-track administrative support and offer generous tax incentives and necessary infrastructure such as data centers.

Public investment in AI is necessary as seed funding. Yet there are warning signs. As with previous state-led projects, there is a risk that AI budgets could dissipate amid competition among local governments. The record of "innovation cities," created two decades ago by relocating public institutions, shows the limits. For example, moving the National Pension Service to Jeonju did not transform the city into a financial hub.



However, one recent case stands out. In Ulsan, SK...