"At Least 2,000 Platform Vehicles Needed... Government Must Present Support Measures"

Interview with Kim Seongjun, CEO of Chacha Creation

[Asia Economy Reporter Bu Aeri] "For platform transportation operators to become self-sufficient independently, at least 2,000 vehicles need to be in operation."

Kim Seong-jun, CEO of Chacha Creation, stated in a phone interview with Asia Economy on the 19th, "The government announced a 'negative regulation' policy, so we trusted that intention and made proactive investments, but with the passage of the revised bill in the National Assembly, the situation has changed, so the government must provide support measures." He urged the government for support, saying, "Investments have stopped, and we are now forced to suspend operations immediately, so visible support measures are necessary."

Earlier on the 17th, the Ministry of Land, Infrastructure and Transport and the mobility industry held a meeting to discuss the impact of the passage of the Passenger Transport Service Act amendment, commonly called the 'Tada Ban Law.' Chacha Creation's Chacha service operates on a business model similar to 'Tada,' so it cannot avoid the effects of the amendment. Since operations are only possible by obtaining a platform transportation license, paying contributions, and complying with the taxi total volume system, the fate of the business depends on the 'license total volume.'

However, the meeting did not specifically address the 'total volume system' that determines the number of vehicles operated or the 'contribution fees' required to conduct business. CEO Kim emphasized, "The scope of the license total volume must be announced so that we can attract investments and secure operating funds to continue the business, but currently, we are at a standstill," urging the government for prompt follow-up measures.

Although the amendment opened the way for platform franchise businesses and platform transportation businesses, CEO Kim places more emphasis on the platform transportation business operated through rental cars. This is because platform franchise businesses require holding taxi licenses and face strong competition from Kakao. Kim stated, "We need to enter the 'innovative' model of platform transportation business, but ultimately, it will be decided by the license total volume," and stressed, "For platform transportation operators to become self-sufficient, about 2,000 licenses are necessary."

The Ministry of Land, Infrastructure and Transport plans to form an 'Innovation Committee' in April to conduct detailed discussions. However, some point out that considering taxi drivers' votes, it may be difficult to accelerate progress before the general election.