"Switched to Delivery Jobs and Never Returned"... Labor Shortage at 2 Million Won Salary Raises Fears of 'Taxi Crisis'

"Drivers Have Not Returned After COVID-19"
More Leaving for Delivery Jobs With Low Barriers to Entry
Difficult to Get a Taxi in Downtown Seoul
Even After 30 Minutes on Two Apps, No Success
Inconvenience Worsens During Heavy Rain or Events
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After finishing a company dinner in Jongno-gu, Seoul, Mr. A (31), an office worker, waited for 30 minutes while alternating between two taxi-hailing applications, but failed to secure a ride. In the end, he had to take a large taxi alone, which had a higher base fare and call fee. He said, "It was about 15 kilometers to Nowon-gu, and the fare was 50,000 won," adding, "These days, getting a taxi is like picking stars from the sky." Recently, it has become increasingly difficult to catch a taxi throughout downtown Seoul. With year-end demand surging, concerns are growing about a repeat of the so-called "taxi crisis."

According to the Taxi Reduction Compensation Fund Management Agency on December 1, as of August, the number of corporate and private taxi drivers nationwide stood at 237,321, down 11.5% from 268,277 in the same month of 2019.

The taxi industry is voicing concerns over a severe labor shortage. An official from the Korea National Association of Taxi Companies said, "Since COVID-19, drivers who left for delivery jobs have not returned," adding, "Rider jobs offer flexible hours and low entry barriers, so the outflow of younger workers continues."

The main reason is low income. Park (62), a former taxi driver who used to earn around 2 million won per month, said, "In the city center, it often takes 5 to 10 minutes just to pick up a passenger, and sometimes over 50 minutes to drive 4 to 5 kilometers," adding, "Even after all that, the fare is just over 10,000 won, which doesn't even cover labor costs."

On the ground, some point out, "Fares have been frozen for years, but only prices have gone up." Park Wonseop, Chairman of the Korea Private Taxi Council, said, "Taxi fares are affected by political schedules such as elections, so they don't rise in a timely manner," and added, "While buses and subways can be adjusted regularly, there is a significant gap between taxi fares and reality." According to the international taxi fare comparison site "Taxi Calculator," the taxi fare in Seoul (10,683 won for an 8-kilometer one-way trip) is lower than in Rome, Italy (about 24,000 won) and Madrid, Spain (about 26,000 won), both of which have a similar per capita GDP to Korea.

The decrease in supply leads to inconvenience for citizens. The impact is even more pronounced on days when demand surges, such as during heavy rain or major events. Lee (29), an office worker, said, "During Halloween in Itaewon, I couldn't get either a Black or Venti taxi at all." These services can be up to twice as expensive as regular taxis, but even then, they are hard to catch. Especially considering that nighttime taxi demand increases significantly at the end of the year, it is highly likely that citizens will face even greater difficulties getting a taxi. Kim (52), another office worker, said, "There are times when, after dinner or drinks, I end up pacing the street for tens of minutes because I can't get a taxi," adding, "There are a lot of gatherings at the end of the year, so when choosing a venue, I try to pick a place that's convenient for taking the subway."

To address the supply shortage, the Seoul Metropolitan Government plans to cancel 1,000 dormant corporate taxi licenses and issue 500 new private taxi licenses by the end of the year as part of its reduction project. A city official explained, "This will effectively increase the number of taxis operating in the city by 500."