"Monopoly Abuse" Criticism by Yoon... Kakao Mobility Announces Complete Overhaul of Commission System (Comprehensive)

Kakao Mobility has decided to completely overhaul its taxi commission system. Amid intense government scrutiny over accounting fraud, discrimination against non-affiliated taxis, and the exploitation of startup technology, President Yoon Suk-yeol also criticized the 'monopoly tyranny,' prompting an urgent move to devise countermeasures.

On the 1st, Kakao Mobility announced that it would hold an emergency meeting with taxi organizations to fully revamp the taxi commission system. A Kakao Mobility official stated, "We plan to coordinate schedules with major taxi organizations as soon as possible to start discussions," adding, "Based on the opinions gathered at this meeting, we will proceed with the commission restructuring."

At the Emergency Economic and Livelihood Meeting held at a cafe in Mapo-gu, Seoul, President Yoon responded to a taxi driver's remark that "Kakao Taxi's monopoly power is being abused excessively" by saying, "We must definitely come up with measures." President Yoon strongly condemned such tyranny, saying, "So-called predatory pricing involves charging almost nothing or very low prices to eliminate competitors, completely dominate the market, and then raise prices once a monopoly is established. This kind of abuse is highly unethical."

Controversies surrounding Kakao Mobility continue unabated. As of 2021, Kakao Mobility's taxi app call market share stood at 93%, effectively holding a monopolistic market dominance. Consequently, political circles and authorities are focusing their attention, increasing the pressure.

The Financial Supervisory Service is conducting an accounting investigation into Kakao Mobility over suspicions of accounting fraud amounting to around 300 billion won. Last week, the Fair Trade Commission sent Kakao Mobility a review report stating that its blocking of calls to non-affiliated taxis violates the Fair Trade Act, recommending fines and referral to the prosecution. The Fair Trade Commission is also reviewing a petition alleging that Kakao Mobility stole the idea of the freight brokerage platform Hwalmulman to launch a similar service. Earlier in February, Kakao Mobility was fined 27.1 billion won for the charge of 'call steering' favoring affiliated taxis.

Kakao Mobility said, "We take the various recent concerns seriously, viewing them as voices and criticisms from the industry and the public regarding our business practices," adding, "Through this meeting, we will listen carefully to the voices of taxi drivers, passengers, and the government to ensure a thorough effort to revamp the service into one that satisfies everyone more."