Designated as a Suitable Industry for SMEs, but "No Practical Effect" for Substitute Driving... Why? (Comprehensive)

Dongbanwi Recommends Designated Industry Status for Small and Medium-Sized Substitute Driving Companies
Existing Substitute Driving Firms 'Oppose'... "No Practical Effect"

[Asia Economy Reporters Kim Bo-kyung and Cha Min-young] Although the Commission for Shared Growth designated the designated driver industry as a small and medium-sized enterprise (SME) suitable sector, opposition from the existing designated driver industry has not subsided. In summary, the recommendation decided by the Commission on the 24th is to 'refrain from entry and expansion by large corporations' in the designated driver industry. However, the designated driver industry claims that it is an ineffective decision and there are serious procedural errors.

On the morning of the same day, the Commission held a plenary session at the JW Marriott Hotel in Seocho-gu, Seoul, and deliberated and approved a recommendation to designate the designated driver industry as an SME suitable sector. The main content is to restrict the entry of new large corporations into the designated driver industry and partially limit the business expansion of Kakao Mobility and T Map Mobility, a subsidiary of SK Square, which are already operating in the designated driver industry.

The Commission recommended refraining from new entry of large corporations into the designated driver market. It also recommended Kakao and T Map to refrain from promotions involving cash incentives. To improve the treatment and welfare of designated drivers, large and small-medium enterprises will jointly make efforts and form a consultative body to regularly discuss compliance with agreed matters.

Despite this decision by the Commission, existing small and medium designated driver companies are opposing it. The Korea Designated Driver Federation (hereafter Federation), which applied for the designation of the designated driver industry as an SME suitable sector, stated that the Commission lost fairness and forcibly pushed for agreements among companies. The Federation held a press conference immediately after the resolution, saying, "Is this the Commission for Shared Growth or for large corporations?" and raised their voices demanding the replacement of the working committee that favors large corporations.

A Federation official claimed, "There are serious errors in the Commission's decision-making process," and said, "The SME suitable sector was designated through a rushed deliberation." The official explained that a biased proposal favoring T Map was unilaterally adopted at the working committee meeting the day before, and this proposal was directly brought to the plenary session agenda. They also argued that since there are practically no other large corporations entering the designated driver industry besides Kakao and T Map, the recommendation to restrict new entries is ineffective.

The Federation official criticized, "Allowing large corporations to share calls is like a neighbor picking apples from the apple tree in our front yard," and added, "The recommendation uses ambiguous expressions like 'refrain,' which seems to restrict large corporation entry but will have no practical effect."

Platform companies such as Kakao and T Map have stated their intention to pursue coexistence. A T Map Mobility official said, "We respect the Commission's recommendation and will sincerely participate in discussions on supplementary matters over the next three months."

Kakao Mobility said, "We have made maximum concessions with a receptive attitude to the Federation and prepared an agreement, so we respect the Commission's recommendation to designate the suitable sector and will faithfully implement it."

The National Designated Driver Labor Union, a group of designated drivers, stated that whether platform companies or existing call companies, efforts should be made to protect the rights of designated drivers and ensure citizen safety. The union said, "If platform companies continue to consider ways to improve the rights of designated drivers through innovation, there is no reason to oppose the entry itself."