Will the 'Tada Prohibition Act' Lose Momentum Following Tada's Not Guilty Verdict?

However, Possibility of Forcing Bill Passage Due to Taxi Industry's Voter Sentiment Pressure

Lee Jae-woong, CEO of Socar (right), and Park Jae-wook, CEO of VCNC / Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Jin-gyu Lee] The court's acquittal ruling on the van-hailing service 'Tada' has led to speculation that the amendment to the Passenger Transport Service Act, commonly known as the 'Tada Ban Law,' will lose momentum. However, with the general election approaching, lawmakers may still push for the bill's passage, unable to ignore the strong opposition from the taxi industry and its voter base.

According to industry sources on the 20th, the amendment to the Passenger Transport Service Act, proposed by Park Hong-geun of the Democratic Party of Korea last October, is scheduled to be discussed at the National Assembly's Legislation and Judiciary Committee (Legislation Committee) on the 26th. If the amendment passes the committee, it could be submitted to the plenary session on the 27th and potentially be finalized.

The passage of the Passenger Transport Service Act amendment in the plenary session is expected to determine Tada's fate. The amendment stipulates that when renting a van with 11 to 15 seats, driver dispatch is only allowed if the rental is for tourism purposes for six hours or more, or if the return location is an airport or port. If the amendment passes, the current Tada service would effectively become impossible in South Korea.

However, since the court ruled yesterday that Tada's service is not an illegal call taxi but a 'legal rental car' and acquitted Lee Jae-woong, CEO of Socar, and Park Jae-wook, CEO of VCNC, the likelihood of the amendment passing has diminished. Although appeals and higher court rulings remain, the fact that the court has once recognized Tada as a legitimate service undermines the rationale for banning it through the amendment.

The industry expects this ruling to have a decisive impact on whether the amendment passes. Especially amid ongoing social debates over Tada's service, lawmakers considering the court's acquittal may delay the bill's processing. The February extraordinary session is effectively the last session of the 20th National Assembly, so if the bill does not pass this time, it will be automatically discarded.

Nevertheless, Tada cannot afford to be complacent yet. With the April 15 general election approaching, lawmakers may still push for the bill's passage, unable to ignore the taxi industry's vehement opposition and voter influence. The taxi industry has planned a general strike on the 25th in response to the acquittal ruling. On his Facebook page yesterday, Representative Park stated, "Although this is a first-instance ruling, the court's decision has opened the door for rental vehicles numbering over one million to offer mobility services like Tada, which will inevitably intensify conflicts between Tada and the taxi industry." He added, "Resolving and mediating these conflicts is clearly the role of the legislature, not the judiciary," emphasizing, "To prevent social conflicts in advance and to promote the development of new mobility industries alongside coexistence with the taxi industry, the amendment must be passed promptly."

This content was produced with the assistance of AI translation services.