Tada Announces Suspension of Basic Service

On the 5th, with the implementation of the amendment to the Passenger Transport Service Act, known as the Tada Ban Act, just around the corner, a 'Tada' vehicle is parked at a garage in Yeongdeungpo-gu, Seoul. Photo by Mo Honam munonam@

On the 5th, with the implementation of the amendment to the Passenger Transport Service Act, known as the Tada Ban Act, just around the corner, a 'Tada' vehicle is parked at a garage in Yeongdeungpo-gu, Seoul. Photo by Mo Honam munonam@

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[Asia Economy Reporter Jin-gyu Lee] The passage of the Tada Ban Law (Amendment to the Passenger Transport Service Act) in the National Assembly plenary session was postponed by one day due to a parliamentary deadlock. While this gives Tada a moment to breathe, the ruling Democratic Party and the main opposition party, the United Future Party, have both expressed support for the amendment, making its passage highly likely.


On the afternoon of the 5th, the National Assembly attempted to discuss the amendment in the plenary session, but following the recess caused by the rejection of the Internet Banking Act amendment, it was agreed not to resume the session and to reconvene at 4 p.m. on the 6th.


The amendment, which passed the Legislation and Judiciary Committee (LJC) the previous day, stipulates that when renting a van with 11 to 15 seats, a driver can only be provided 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 plenary session, the current 11-seat van call service, 'Tada Basic,' will no longer be able to operate normally in South Korea.


If Tada wants to maintain the Basic service, it must comply with the 'Taxi Total Volume System,' which requires paying a contribution fee based on the number of vehicles and obtaining a license as a platform transportation operator to increase vehicles within the permitted scope.


In response, Tada has declared a 'service suspension,' criticizing the regulation as unacceptable. Park Jae-wook, CEO of VCNC, Tada's operator, wrote on his Facebook on the same day, criticizing the passage through the LJC: "When someone holding a knife is in front of you, you cry out to be spared, but they replace the knife with a syringe the size of a knife and stab your heart. No matter how much you shout that whether it’s a knife or a syringe the heart will die, they force it through saying the syringe is fine."



Lee Jae-woong, CEO of Socar, also wrote on his Facebook that day, "It seems they did not see the thousands of people who risked infection every day to take responsibility for others' mobility and make a living," and added, "Minister Kim Hyun-mi of the Ministry of Land, Infrastructure and Transport and the government must take responsibility for the tears of young people working in innovative companies and the thousands of drivers who lost their jobs due to policies they led."


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

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