Ministry of Land, Infrastructure and Transport Announces Legislative Notice for 'Passenger Vehicle Act Subordinate Legislation' to Institutionalize Platform Business

[Asia Economy Reporter Yoo In-ho] The Ministry of Land, Infrastructure and Transport announced on the 19th that it will publicly notify the amendment to the Enforcement Decree and Enforcement Rules of the Passenger Transport Service Act, which institutionalizes platform businesses, for 40 days starting from the 20th.

This subordinate legislation amendment is a follow-up measure to implement the revised Passenger Transport Service Act and to reflect the recommendations of the 'Mobility Innovation Committee' announced on the 3rd into policy.

To create a market environment where new and existing mobility services coexist and provide diverse and convenient mobility services, detailed contents such as the Passenger Transport Market Contribution Fee and platform transport business licensing standards recommended by the Mobility Innovation Committee have been incorporated.

The Passenger Transport Market Stability Contribution Fee is set at 5% of sales as a basic rate, but operators can choose between KRW 800 per trip or KRW 400,000 per month per licensed vehicle.

The payment ratio is differentiated for operators with fewer than 300 licensed vehicles (applicable to small and medium enterprises under the Small and Medium Business Act that have been established within 7 years).

Licensing criteria for platform transport businesses (Type 1) include platform functions (call/reservation, vehicle control, fare prepayment), vehicles (at least 30 vehicles with 13 seats or fewer), garages, and insurance.

The Platform Transport Business Deliberation Committee for licensing review is composed of members appointed by the chairperson (Minister of Land, Infrastructure and Transport) from individuals with extensive knowledge and experience in transportation and related fields.

Eom Myung-so, Director General of Comprehensive Transportation Policy at the Ministry of Land, Infrastructure and Transport, said, “Since the Mobility Innovation Committee, composed of experts in related fields, prepared this coexistence plan after 13 meetings and in-depth discussions including industry feedback, the government has accepted the committee’s recommendations and prepared the subordinate legislation amendment. We will continue to collect opinions from the public and related industries during the public notification period and proceed with related procedures to ensure there are no disruptions to the full implementation of the system in April next year.”

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