Designated as a Suitable Industry for SMEs, but Substitute Driving Industry Faces Backlash from Existing Sector Claiming "No Practical Effect" (Update)

Dongbanwi Recommends Designated Industry Status for Small and Medium-Sized Substitute Driving Companies
Existing Substitute Driving Firms 'Oppose'... "No Practical Effect"

The Win-Win Growth Committee designated the designated driver service industry as a suitable sector for small and medium-sized enterprises (SMEs), but the existing designated driver industry’s opposition has not subsided. In summary, the recommendation decided by the committee on the 24th is to ‘restrain large corporations from entering and expanding’ in the designated driver service industry. However, the designated driver industry claims that it is an ineffective decision and there are serious procedural errors.

On the morning of the same day, the committee held a plenary session at the JW Marriott Hotel in Seocho-gu, Seoul, and deliberated and approved a recommendation to designate the designated driver service industry as an SME-suitable sector. The main content is to restrict new large corporations from entering the designated driver service industry and partially limit the business expansion of Kakao Mobility and T map Mobility, a subsidiary of SK Square, which are already operating in the designated driver service industry.

The committee recommended that large corporations refrain from newly entering the designated driver service market. It also recommended that Kakao and T map refrain from promotions involving cash incentives. To improve the treatment and welfare of designated driver drivers, large and small-medium enterprises will jointly make efforts, and a consultative body will be formed to regularly discuss compliance with agreed matters.

Despite this decision by the committee, existing small and medium designated driver companies are opposing it. The Korea Designated Driver Federation (hereinafter the Federation), which applied for the designated driver service to be designated as an SME-suitable sector, stated that the committee lost fairness and forcibly pushed for agreements between companies. The Federation held a press conference immediately after the resolution and raised their voices, saying, "Is this the Win-Win Growth Committee working together with large corporations?" and "Replace the working-level committee that only sides with large corporations."

A Federation official claimed, "There are serious procedural errors in the committee’s decision process," and said, "The SME-suitable sector was designated through a rushed deliberation." They explained that a proposal biased toward T map was unilaterally adopted at the working-level committee the day before, and this proposal was directly brought up as an agenda item at the plenary session. They also argued that since there are practically no large corporations other than Kakao and T map entering the designated driver service industry, the recommendation to restrict new entries is ineffective.

The Federation official criticized, "Allowing large corporations to share calls is like picking apples from an apple tree in our front yard by the neighbor," and added, "The recommendation uses the vague expression ‘refrain from,’ which seems to restrict large corporations’ entry but will have no practical effect."

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