South Korea is set to adopt urban air mobility vehicles (UAM), which will serve as taxis between major airports and downtown Seoul as soon as 2025.
Powered by helicopter-like rotors for vertical take-offs and landings, the craft demonstrated can be piloted or operated autonomously without one.
When passengers are onboard the UAMs, a pilot must man the craft to ensure safety, a transport ministry official said, adding it would also aid acceptance by the general public.
Last year, South Korea announced a roadmap to begin commercial urban air travel by 2025.
The transport ministry estimates such services could cut travel time for distances between 30-50km (19-31 miles) from an hour by car to 20 minutes by air.