Ministry of Land, Infrastructure and Transport: "Car rental business can be operated within the regulated system"

[Asia Economy Reporter Yoo In-ho] The Ministry of Land, Infrastructure and Transport announced that the amendment to the Passenger Transport Service Act, known as the 'Tada Ban Law,' passed the National Assembly's Legislation and Judiciary Committee plenary session on the 4th, stating that "rental car-based businesses such as Tada, Buxi, and Chacha can continue their operations within the regulatory framework." Companies like Tada and Socar are strongly opposing this amendment.

On the 5th, the Ministry of Land, Infrastructure and Transport emphasized in a press release that "this bill was prepared through long-term consultations among the government, the National Assembly, and the taxi and mobility industries since March last year. It is a legislative measure to resolve social conflicts and institutionalize a system that allows various mobility operators to conduct innovative businesses stably within the regulatory framework."

Earlier, the National Assembly's Legislation and Judiciary Committee held a plenary session the previous day and passed the amendment to the Passenger Transport Service Act under the authority of Chairman Yeo Sang-gyu, despite opposition from Lee Cheol-hee of the Democratic Party and Chae Yi-bae of the Minsheng Party.

The bill passed by the Legislation and Judiciary Committee is a revision of Article 49-2, which defines the types of passenger car transport platform businesses in the Passenger Transport Service Act amendment bill originally proposed by Park Hong-geun of the Democratic Party and passed by the National Assembly Land, Infrastructure and Transport Committee. The revision includes rental cars in the platform transport business category. A plenary vote is scheduled for the afternoon session.

The Ministry of Land, Infrastructure and Transport stated, "We expect more diverse and innovative mobility services to be launched through this amendment. If this amendment passes the plenary session of the National Assembly, we will broadly collect stakeholders' opinions during the preparation of subordinate legislation to improve taxi services to meet public expectations and support mobility innovation without disruption."

In response, Tada strongly opposed the amendment. Lee Jae-woong, CEO of Socar, criticized on Facebook the previous day, saying, "The government and National Assembly that took away even the chance to dream a new dream are dead." Park Jae-wook, CEO of VCNC, which operates Tada, issued a statement saying, "Tada will soon suspend its Basic service according to the legislative body's decision."

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