[Asia Economy Reporter Buaeri] On the 3rd, the Ministry of Land, Infrastructure and Transport announced a draft enforcement decree recommendation for the 'second Tada,' but the industry expressed concerns that the contribution burden is excessive.
According to the Ministry of Land, Infrastructure and Transport, under the amendment to the Passenger Transport Service Act, known as the 'Tada Prohibition Act,' from April next year, to operate a platform transportation business like Tada, one must own 30 or more vehicles with 13 seats or fewer and meet basic requirements to obtain government approval.
The Ministry's 'Mobility Innovation Committee,' composed of external experts, finalized and announced policy recommendations for mobility innovation, including amendments to subordinate laws of the Passenger Transport Service Act, centered on these contents.
According to the Passenger Transport Act amendment, platform operators are classified into three types: ▲Platform Transportation Business (Type 1), such as 'Tada Basic' operated with existing white Carnival vehicles; ▲Platform Franchise Business (Type 2), such as KakaoT Blue or Makaron Taxi; and ▲Platform Brokerage Business (Type 3), such as Tmap Taxi.
The core of the recommendation is the platform transportation business. To operate this business, companies must pay contributions in the spirit of coexistence with existing taxis. However, the payment rates will be differentiated by intervals up to 300 vehicles.
According to the recommendation, the contribution payment rates are divided based on the number of vehicles owned by the company: ▲less than 200 vehicles, ▲200 to less than 300 vehicles, and ▲300 or more vehicles.
Companies operating 300 or more vehicles must choose one of the following to pay: 5% of sales, 800 KRW per trip, or 400,000 KRW per permitted vehicle.
For 200 to less than 300 vehicles, 50% of the contribution is exempted, and for less than 200 vehicles, 75% is exempted. Companies owning fewer than 100 vehicles are granted a two-year grace period. No total cap on permitted vehicles will be set.
The industry considers the government's contribution level excessive. The mobility industry has been advocating for contributions at about 3% of sales and 300 KRW per trip. The Korea Startup Forum issued a statement on the day, evaluating it as "a disappointing level where innovation and competition for consumers have disappeared, leaving only permits and management." They added, "We regret that the Ministry of Land, Infrastructure and Transport has broken its own promises."
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