The Fate of 'Tada' Decided Today... National Assembly Judiciary Committee Discussion

[Asia Economy Reporter Buaeri] The rental car-based ride-hailing service 'Tada' faced a critical day on the 4th. The National Assembly's Legislation and Judiciary Committee held a plenary session to discuss the amendment to the Passenger Transport Service Act, known as the 'Tada Prohibition Act.'

Article 34-2 of the amendment stipulates that for tourism purposes, vehicles with 11 to 15 seats can be rented, but the operator can only provide drivers if the rental period is six hours or longer, or if the rental and return locations are airports or ports. If passed as is, the services currently operated by 'Tada' would become illegal.

The passage of the bill remains uncertain. The Ministry of Land, Infrastructure and Transport has proposed a revision specifying 'rental cars' as the vehicle procurement method to persuade some lawmakers, but Representative Chae I-bae of the Minsaeng Party has called for a reconsideration. If even one member of the Legislation and Judiciary Committee opposes it, the bill's passage will be practically difficult. Should the committee refer the amendment back to the second subcommittee for re-discussion, the bill is expected to be effectively discarded.

Lee Jae-woong, CEO of Socar, visited the National Assembly the day before to appeal for the bill's 'repeal.' He told reporters, "Beyond the fact that 10,000 drivers would lose their jobs amid the economic crisis, I believe this will send a very negative message to startup innovation growth in our society," adding, "I once again request the Ministry of Land, Infrastructure and Transport and the Democratic Party to repeal the Tada Prohibition Act."

The mobility industry is divided over the amendment. Seven companies, including Kakao Mobility, KST Mobility, Buxi, Buxi Busan, Konatus, WeMobility, and T1 Mobility, excluding Tada, urged the passage of the amendment. In a statement, they expressed concern that "the bill, nicknamed the 'Tada Prohibition Act,' highlights conflicts with a specific company more than its original intent and substantive content."

They continued, "To properly guarantee current innovation and lay the foundation for the birth of unprecedented innovative services, and to ensure that all citizens can enjoy the fruits of that innovation, the amendment to the Passenger Transport Service Act must be passed."