Intra-party letter refutes 'legislative failure'
Park Kwang-on's apology called "embarrassing"
Park Hong-geun, a member of the Democratic Party of Korea, sent a lengthy letter to fellow lawmakers to explain himself after facing criticism both inside and outside the party over the 'Tada Prohibition Act (Amendment to the Passenger Transport Service Act)' that he led during the 20th National Assembly. He expressed his dismay at the Democratic Party's floor leadership's apology, stating that the efforts of the Moon Jae-in administration and the National Assembly for innovation had been disparaged.
On the 12th, Park delivered a 12-page letter titled "The Mobility Innovation Act is Running Today as Well!" to lawmakers. He said, "Following the recent Supreme Court ruling related to Tada, there have been sudden voices of reflection and criticism within the party one after another. As the chairman of the Euljiro Committee for the Protection of the People’s Livelihood at the time, who took the lead in reaching a social grand compromise and amending the relevant law, I could no longer remain silent."
In 2020, the National Assembly passed the Tada Prohibition Act, which strictly regulates exceptions for driver referrals by vehicle rental operators such as Tada and institutionalizes platform transportation operators. The amended law allows driver referrals by operators only when renting 11- to 15-seat vehicles for tourism purposes for more than six hours or when the rental and return locations are airports or ports. Since Tada was often used for everyday life rather than tourism, it was pushed out of the market.
However, on the 1st, the Supreme Court acquitted former executives of Tada, leading to criticism in the political sphere that the legislation had failed. On the same day, Jang Ye-chan, the youth supreme council member of the People Power Party, and Yeo Seon-woong, former youth communication policy officer of the Moon Jae-in administration’s Blue House, held a press conference at the National Assembly communication office, stating, “Choosing regulation over innovation while ignoring the rights of the entire public and kowtowing to vested interests and various associations for immediate votes resulted in the birth of the monster called the ‘Tada Prohibition Act.’ Even though the Democratic Party led and passed the ‘Tada Prohibition Act,’ the People Power Party must also reflect on having supported it,” criticizing both parties.
They added, “Even if the Tada Prohibition Act is repealed, the possibility of ‘Tada’ effectively reviving through other services is low,” but said, “If the National Assembly shows that it can correct a flawed law, it will send a positive message to the innovation industry.” They also said they would work to propose amendments to repeal the ‘Tada Prohibition Act’ targeting lawmakers from both parties.
In response, Park said, “Some, including Tada’s side, have consistently criticized our government and National Assembly’s legal amendments as obstructing innovation,” adding, “This is a distortion of facts and a very self-centered and politically provocative claim.”
He continued, “The amendment to the Passenger Transport Service Act at the time was the result of a social grand compromise between the taxi industry and the mobility platform industry, and a bill for innovation in the new mobility industry,” adding, “It was not simply about siding with taxis in competition with Tada, but intended to support new types of better innovative services like Tada to operate within the system.”
Park emphasized, “As the Constitutional Court pointed out, Tada’s service, which is a ‘rental car with a driver,’ can only be seen as unregulated taxi operations,” and “No matter how good the innovation is, it cannot be an exception to regulation.”
Along with this, Park criticized the Democratic Party’s floor leadership. Earlier, on the 5th, floor leader Park Kwang-on publicly apologized at the party’s supreme council meeting, saying, “I painfully accept the criticism that Tada’s victory is a loss for the National Assembly,” and “The Democratic Party will lead technological innovation, present a vision for innovative growth, and promote legislation.”
Park said, “I was dismayed that even the floor leadership suddenly mentioned a ‘Tada reflection letter,’” and “The recent claims by some within the party not only disparage the efforts of the Moon Jae-in administration and the National Assembly for mobility innovation but also label us as a group that hinders new industries,” he rebutted.
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