Will Taxi Drivers Receive Support from the 4th Supplementary Budget? Corporations NO, Individuals YES

On the first day of mandatory mask-wearing on public transportation, the 26th, citizens wearing masks are taking taxis in front of Seoul Station. Photo by Mun Ho-nam munonam@

[Sejong=Asia Economy Reporter Kim Hyunjung] Through the government's 7.8 trillion won 4th supplementary budget (supplementary budget) project, can taxi drivers also receive compensation for sales losses caused by the COVID-19 pandemic? To get straight to the point, corporate-affiliated drivers are not eligible, but individual taxi drivers are.

Taxi drivers who are registered as individual business owners and operate independently are classified as a type of self-employed person and are included in the general business support target of the Small Business New Hope Fund, for which the government has allocated a budget of 2.4 trillion won. The amount they can receive is 1 million won as business stabilization funds. However, they must prove the fact of sales decline.

Although the industry is the same, corporate taxi drivers affiliated with companies are classified as employees and are not eligible. Emergency Employment Stability Subsidies are also targeted at special employment types (special contract workers), freelancers, etc., so taxi drivers cannot receive them regardless of whether they are corporate or individual.

Of course, vulnerable groups or households in crisis may be able to utilize emergency livelihood support programs, but in this case, it requires judgment by local governments and the central government and is unrelated to occupation.

However, the taxi industry is expressing dissatisfaction, saying that due to social distancing, outdoor activities have sharply decreased, and it is practically equivalent to having been restricted in operations in proportion to the spread of the COVID-19 pandemic.

In fact, due to the government's implementation of social distancing level 2 and the strengthened social distancing level 2.5 measures in the metropolitan area, taxi passengers have sharply decreased. Taxi operation rates have fallen to the 30% range, and corporate taxi drivers who have to pay daily quotas are also facing difficulties, according to related industry claims.

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