Taxi Drivers Struggling to Find Replacement... Busan City Says "Hiring Support to Solve Labor Shortage"

Nearly Half of Corporate Taxi Drivers Gone After COVID-19
Operating Rate Drops to 46%, Causing Management Crisis for Taxi Companies
Promotion, Job Fairs, Workshops, and Employment Allowances Introduced

Busan City has begun efforts to secure taxi drivers, who have become increasingly difficult to find.

On the 4th, Busan City (Mayor Park Hyung-jun) announced that it will launch comprehensive support measures together with the taxi industry to resolve the shortage of corporate taxi drivers, which has decreased by nearly 50% due to the impact of COVID-19.

As the number of passengers declined and income sharply dropped due to COVID-19, the number of corporate taxi drivers in the Busan area, which was around 10,000, has decreased by more than 5,000 compared to before the pandemic.

The number fell from 10,649 in 2019 to 5,613 in 2024. During this period, 5,036 drivers stopped driving, accounting for 47% of taxi drivers.

As a result, the operating rate of corporate taxis was only 46% in 2024. If a taxi company needs 10 drivers, only 4 are secured, leading to intensified management difficulties in the industry and making it harder for citizens to use taxis.

To address this issue, Busan City plans to hold regular job fairs for transportation workers. In addition, it will launch promotional campaigns targeting citizens together with the taxi association. The city will also work to improve the negative perception of taxis and plans to provide incentives to new hires. Various support measures, including institutional improvements for sustainable job creation, will also be established and implemented.

Busan City will regularize the ‘City + Association Joint Job Fair’ in cooperation with the job department and introduce incentives such as a 400,000 KRW ‘Employment Settlement Allowance’ for new hires.

Furthermore, the city will promote the taxi image through comprehensive publicity efforts including media, online, and offline channels, and actively provide employment guidance to attract new workers.

For transportation operators, a ‘Management Innovation Workshop’ will be regularized to enhance kindness and service mindset, and institutional improvements such as diversifying work types will be actively pursued to create sustainable employment.

Last year, Busan City held its first job fair and representative management innovation workshop to support the resolution of the corporate taxi driver shortage.

Hwang Hyun-chul, Director of the Busan City Transportation Innovation Bureau, said, “We hope that the local corporate taxi industry, which has fallen into a management crisis due to the sharp decline in operating rates caused by the taxi driver shortage, will regain vitality,” adding, “Since the taxi industry is facing great difficulties in securing workers, we will do our best to support smooth taxi use by citizens and resolve the management difficulties of the taxi industry.”