Buksi "Welcome the Tada Ban Law... Accelerate Mobility Business"

[Asia Economy Reporter Jang Hyowon] Buxi, a subsidiary of Kookbo, a KOSPI-listed company, announced that it will accelerate its mobility business following the passage of the amendment to the Passenger Transport Service Act (commonly known as the ‘Tada Ban Act’) in the National Assembly.

Buxi, a subsidiary of Kookbo, along with seven companies including Buxi Busan and Kakao Mobility, issued a statement on the 27th of last month urging the prompt passage of the Passenger Transport Act amendment. After passing the Legislation and Judiciary Committee on the 4th, it was approved at the National Assembly plenary session on the 6th.

Buxi stated, “With the passage of this law, which was prepared through long-term consultations among the government, National Assembly, and the mobility industry since March last year, social conflicts will be resolved, and various mobility operators will have a stable foundation to conduct innovative businesses within the regulatory framework.” They added, “This law is not the ‘Tada Ban Act’ but the ‘Mobility Innovation Act.’”

In Buxi’s case, through continuous consultations with the government, it received legal approval for its service from the Ministry of Land, Infrastructure and Transport in October 2017. During the 2018 Pyeongchang Winter Olympics, it participated as an on-demand transportation operator selected by the organizing committee and received favorable reviews from foreign service users.

With the passage of this amendment to the Passenger Transport Service Act, Kookbo and Buxi plan to accelerate their innovative mobility businesses that they have been preparing.

Kookbo acquired shares of Buxi at the end of October last year to enter the mobility business and became the largest shareholder, currently holding 36.29% of the shares.

Additionally, Kookbo completed the payment of convertible bonds (CB) worth 7 billion KRW on the 28th of last month, and it is known that through a large-scale capital increase soon, funds for new businesses and investments will be secured simultaneously.

Kookbo’s financial condition is also improving. On a consolidated basis, Kookbo’s sales last year reached 89 billion KRW, a 24.5% increase compared to the same period the previous year, and operating losses decreased by 81.7% (4.3 billion KRW) to 960 million KRW. It is expected that with the full-scale operation of Buxi and Buxi Busan this year, sales growth and profit generation will accelerate further.

Hyun Ha, CEO of Kookbo, said, “With the passage of the amendment to the Passenger Transport Service Act, the mobility business with Buxi, which we have been preparing since last year, can now be promoted in earnest.” He added, “We will do our best to make Kookbo and Buxi leading companies driving innovation in logistics and mobility businesses.”