Will Lee Jae-woong's Appeal Work? The Fate of the 'Tada Ban Law' Decided Today

[Image source=Yonhap News]

[Asia Economy Reporter Lee Ji-eun] "If the Tada Prohibition Act passes, Tada will shut down, over 10,000 drivers will lose their jobs, and users will lose their choices."

Lee Jae-woong, CEO of Socar, which operates the mobility service 'Tada' based on rental cars, made this plea at the National Assembly Press Hall on the 3rd. Can his appeal save Tada? A discussion that will decide Tada's fate is scheduled to take place at the National Assembly on the 4th.

The National Assembly Judiciary Committee will hold a plenary session that morning to discuss the amendment to the Passenger Transport Service Act, commonly called the 'Tada Prohibition Act.' If this bill, proposed by Park Hong-geun of the Democratic Party of Korea, passes the Judiciary Committee, it will be submitted to the plenary session on the 5th. If it passes there, the Tada Basic service will become illegal. This is because Article 34, Paragraph 2, the key provision of the amendment, limits business operations using vans with 11 to 15 seats to rental periods of six hours or more or rentals and returns at airports or ports.

However, on the 19th of last month, the Seoul Central District Court acquitted Tada in the first trial, ruling that it is a "legal rental car service, not an illegal call taxi." Additionally, voices opposing the Tada Prohibition Act have begun to rise within the Judiciary Committee. Representative Chae I-bae of the Minsaeng Party, who demands a reconsideration of the Tada Prohibition Act from scratch, is a notable figure. In an interview last month with MBC Radio's 'Lee Jin-woo's Economy in Your Hands,' Representative Chae stated, "It is unacceptable for the government to retroactively prohibit Tada, which has operated under negative regulation."

CEO Lee also visited the Judiciary Committee on the 3rd to request the deletion of the key provision of the Tada Prohibition Act and appealed to reporters that Tada is on the brink of closure. He said, "Beyond the loss of jobs for 10,000 drivers due to the economic crisis, this will send a very negative message to innovation growth and startups in our society," urging the bill's withdrawal.

On the other hand, seven other mobility companies excluding Tada demanded the swift passage of the Passenger Transport Service Act amendment currently under discussion, stating that it is not a Tada Prohibition Act. Kakao Mobility, T1 Mobility, We Mobility, Buxi, Buxi Busan, Konatus, and KST Mobility issued a statement on the 3rd, raising their voices by saying, "The Passenger Transport Act was derived together with various sectors, including Tada."

Four taxi organizations, including the National Taxi Labor Union Federation representing the taxi industry, also released a statement on the 3rd, saying the amendment is for coexistence between the taxi and mobility industries. They pointed out, "The sincerity of Tada, which has made no concessions so far, suddenly advocating coexistence with the taxi industry and social profit return ahead of the National Assembly bill review, is questionable."

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