The South Korean government held a public-private response meeting on Tuesday to address a proposed U.S. rule that would ban the sale or import of connected vehicles — cars equipped with internet connectivity and external communication systems — containing certain hardware and software linked to China and Russia. The U.S. rule would impact key technologies such as the Vehicle Connectivity System and Automated Driving System, which are critical for external communications and autonomous driving.

The rule, if implemented, could disrupt supply chains for South Korean automakers that rely on Chinese components. South Korea’s automotive sector relies heavily on Chinese suppliers for critical technologies. However, the rule allows phased implementation, with restrictions on software starting in 2027 and hardware in 2029, providing companies time to adapt.