Seoul Taxi Fare Increase Leaves Drivers Distressed: "Customers Dropping, Chaos Ensues"

"Phenomenon of Choosing Between Gyeonggi and Incheon Taxis May Occur"
"About Half of Taxi Passengers Say They Have Decreased"

[Asia Economy Reporter Ryu Jeong-min] "They say it has decreased by about half."

On the morning of the 2nd, Kim Seong-han, Secretary General of the National Democratic Taxi Union, said this in an interview with MBC Radio's 'Kim Jong-bae's Focus' regarding the aftermath of the Seoul mid-sized taxi base fare increase to 4,800 won.

Although the taxi fare hike seems like it would be welcomed by drivers, in reality, both passengers and drivers are distressed.

Kim said, "In short, there is chaos because customers have dropped off," and conveyed the situation.

On the 31st, citizens are using taxis at the Seoul Station taxi stand ahead of the increase in the basic fare for medium-sized taxis in Seoul from the current 3,800 won to 4,800 won starting at 4 a.m. tomorrow. Photo by Kang Jin-hyung aymsdream@

"Passengers these days are greatly burdened by the cost of living, and the tendency to avoid using taxis started last year. Last year, the call fee was raised, and from December 1st, the late-night surcharge hours were extended and the surcharge rate doubled. On top of that, the base fare was sharply increased by 1,000 won, so it was an unprecedented large increase."

Kim explained, "When there are differences such as late-night surcharge hours or base fares, a phenomenon arises where people choose taxis from Gyeonggi Province or Incheon, and relatively in Seoul, demand decreases, causing these problems."

The Seoul taxi fare increase is expected to eventually lead to fare increases in Incheon and Gyeonggi taxis as well.

Kim pointed out, "When adjusting fares, we always say that a fare increase alone is not enough. If fares increase, policies must be implemented in parallel to ensure that the increased fare portion is reflected in raising the actual wages of corporate taxi drivers. But now, wages are raised and then labor and management are told to handle it autonomously. This causes the fare increase burden borne by the public to ultimately be resolved elsewhere."

Kim explained, "As the burden increases, service should improve and taxis should operate comfortably, but since the treatment of corporate taxi drivers, who are directly responsible for providing service while operating taxis, has not improved, these problems seem to be recurring."