Presenting a 10-Year Vision and Policy Directions for Platform-Based Mobility Innovation

[Asia Economy Reporter Yoo In-ho] The government is expected to promote the activation of platform transportation business (Type1) and platform franchise business (Type2) to expand user demand and the overall mobility market size. This is part of a strategy to institutionalize various platform businesses and complete the foundation for mobility innovation.

The Ministry of Land, Infrastructure and Transport announced that it held the first meeting of the 'Mobility Innovation Committee' on the 14th to discuss detailed institutionalization plans such as amendments to subordinate laws following the revision of the Mobility Innovation Act, the 'Passenger Transport Service Act,' which was promulgated on the 7th of last month.

The Mobility Innovation Committee will discuss policy measures related to subordinate laws of the Passenger Transport Service Act and propose them to the government. It will also serve as a public interest committee to mediate when there are disagreements among industries.

The committee is composed of experts in transportation, consumer affairs, and IT fields, recommended by the platform and taxi industries as well as related government departments, to ensure sufficient collection of consumer opinions while prioritizing industry coexistence and public convenience.

Members include Professor Ha Heon-gu of Inha University, Lee Chan-jin, founder of Hangul and Computer, Yoon Young-mi, co-representative of the Green Consumer Network National Council, Cha Du-won, head of strategic research at the Korea Insight Research Institute, lawyer Kim Bo-ra-mi of D.K. Law Office, adjunct professor Kim Young-gil of Kookmin University, research fellow Ahn Ki-jung of Seoul Institute, Professor Kim Hyun-myung of Myongji University, and adjunct professor Kwon Yong-joo of Kookmin University.

Although the platform and taxi industries do not directly participate as committee members, the committee plans to sufficiently gather industry opinions through members directly recommended by the industries.

At the meeting, discussions focused on the operation plan for the platform transportation business licensing system, the calculation method for platform transportation business operator contributions, activation plans for platform franchise businesses, and the schedule for future discussions.

The committee plans to continue discussions on policy measures to ensure that the newly introduced platform transportation business through this law amendment can be stably established in the market.

The platform transportation business licensing system aims to activate platform transportation business (Type1) and platform franchise business (Type2) to expand user demand and the overall mobility market size. The plan is to expand brand-type mobility capable of real-time reservation, call, and dispatch to 50,000 vehicles by 2022, 100,000 vehicles by 2025, and 200,000 vehicles by 2030.

Platform transportation is a platform franchise business where the platform operator directly secures vehicles and drivers to provide new transportation services. It recruits taxis as franchisees and provides branded taxi services through the platform.

The committee plans to set the contribution fees at an appropriate level, considering overseas cases, to promote platform activation while also preserving coexistence with the taxi industry.

Furthermore, the mobility market size is planned to expand from the current 8 trillion KRW to over 15 trillion KRW by 2030, increasing brand-type mobility to more than 200,000 vehicles. To this end, the government will promote △ the spread of innovative mobility based on platforms △ the launch of various services that meet public needs △ and mobility policies for the next 10 years.

Meanwhile, the committee will operate over approximately three months to collect and mediate industry opinions and discuss issues, aiming to produce a committee proposal by August.

The Ministry of Land, Infrastructure and Transport plans to finalize the policy measures after industry consultations based on the committee proposal, proceed with the legislative notice process for subordinate laws in September, and implement them from April 8 next year.

Baek Seung-geun, Director of the Transportation and Logistics Office at the Ministry of Land, Infrastructure and Transport, said, “We formed the Mobility Innovation Committee centered on objective and capable experts after careful review, actively considering industry recommendations. We will proceed with discussions to realize the future of platform mobility innovation proposed by the government and ensure that policy measures to complete the foundation of mobility innovation are promptly derived.”

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