Ministry of Land Meeting Without 'Tada'... Mobility Industry Requests "Reduction of Contribution Fees"

[Asia Economy Reporter Buaeri] The mobility industry met with Kim Hyun-mi, Minister of the Ministry of Land, Infrastructure and Transport, to request the prompt preparation of enforcement ordinances and contribution fee reductions related to the amendment of the Passenger Transport Service Act (Passenger Act). The Ministry of Land, Infrastructure and Transport promised to support service launches through the regulatory sandbox system and to reduce contribution fees for early-stage startups.

On the afternoon of the 17th, Minister Kim and representatives from the mobility industry met at the KST Mobility office located in Seoul City Tower to discuss matters following the amendment of the Passenger Transport Service Act (Passenger Act). Thirteen companies, including Kakao Mobility, KST Mobility, Buxi, and Chacha, participated. Tada was absent.

Oh Myung-so, Director of Comprehensive Transportation Policy at the Ministry of Land, Infrastructure and Transport, stated in a briefing after a closed meeting, "The industry requested 'contribution fee reductions for startups' and 'systems to support startups.' There were also calls for regulatory relief regarding overlapping shadow regulations by local governments. They asked that if permission is granted by the Ministry of Land, Infrastructure and Transport, it should be uniformly applied to local governments as well."

With the passage of the Passenger Act amendment in the National Assembly, rental car-based companies like Tada must pay contribution fees and obtain government approval to operate platform transportation businesses. However, no specific discussions were held at the meeting regarding total license volume or contribution fee reductions.

Director Oh explained, "The Ministry of Land, Infrastructure and Transport will continue to gather opinions through the 'Mobility Innovation Committee' and promptly create enforcement ordinances and rules." The ministry plans to form the Mobility Innovation Committee around April to discuss enforcement ordinances.

The Ministry of Land, Infrastructure and Transport announced that it will lower the entry barrier for platform franchise businesses by relaxing the license standard number from the existing 4,000 vehicles to 500 vehicles and will revise enforcement rules to allow drivers to obtain qualifications within 1 to 2 days, ensuring smooth driver supply.

Meanwhile, Lee Jae-woong, former CEO of Socar, who declared the suspension of the 'Tada Basic' service following the passage of the Passenger Act amendment, expressed dissatisfaction with the Ministry of Land, Infrastructure and Transport. When the ministry posted a promotional phrase on its website stating "Tada will increase and diversify," Lee expressed frustration, saying, "They shut down the service and not only insist it is not a prohibition law but also mock us."

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