Taxi Fare Increase of 4,800 Won Proposed... "Can't Afford It Now," Common People 'Bewildered'

Base Fare Reduced, Midnight Surcharge Extended by 2 Hours
"If Penalties Increase, Driver Income Remains Unchanged... Questionable Incentive Effect"
Taxi Operation Rate: Q1 2019 50.4% → Q1 This Year 31.5%
City to Hold Public Hearing on May 5 to Address Midnight Taxi Shortage

Seoul City is pushing for a taxi fare increase to alleviate late-night boarding difficulties. The photo shows the taxi stand at Seoul Station on the 2nd.
[Image source=Yonhap News]

[Asia Economy Reporter Park Hyun-joo] Citizens are showing bewildered reactions to the Seoul Metropolitan Government's proposed taxi fare increase plan aimed at resolving the late-night taxi shortage. With fares significantly raised, citizens face a heavier financial burden, and there are negative forecasts that the actual effect of attracting drivers will be minimal.

Recently, Seoul submitted the 'Taxi Fare Adjustment Plan (Draft) for Resolving Late-Night Boarding Difficulties' to the Seoul Metropolitan Council. The plan includes raising the basic fare for mid-sized taxis from the current 3,800 won to 4,800 won next year, an increase of 1,000 won, and shortening the basic distance from the current 2 km to 1.6 km. The late-night surcharge period, currently from midnight to 4 a.m. the next day, will be moved forward to 10 p.m., extending it by 2 hours. Additionally, the late-night surcharge rate will be expanded from the existing 20% to 20?40%. With the fare meter rising faster and more quickly, the perceived fare increase by citizens is expected to be even higher.

However, some voices express negative opinions that only citizens' fare burdens will increase without actually resolving the taxi crisis. Mr. A, who has been driving a taxi for 17 years, said, "Even if the basic fare goes up, the number of taxis will not increase," adding, "If fares go up, the company will want to raise the quota, which will only hurt taxi drivers." It is pointed out that if the company raises the quota, the actual income of taxi drivers will not increase, so the incentive effect will not appear.

Citizens are also showing unfavorable reactions. One netizen commented, "I think I will avoid taking taxis unless it is really urgent now." Another netizen criticized, "They are trying to solve the taxi crisis by raising fares to reduce demand instead of increasing taxi supply," adding, "If fares go up, won't ordinary people be unable to take taxis?"

On the morning of the 10th of last month during rush hour, citizens waiting to take a taxi formed a long line extending outside the West Taxi Stand at Seoul Station in Jung-gu, Seoul. [Image source=Yonhap News]

The taxi crisis continues in the metropolitan area. Following the full lifting of social distancing measures in April, the population movement during late-night hours increased, while the number of taxi drivers decreased. According to the National Taxi Transportation Business Association Federation, the number of corporate taxi drivers nationwide, which was 102,320 at the end of 2019, dropped to 74,536 in May, a decrease of over 10,000. The taxi operation rate fell from 50.4% in the first quarter of 2019 to 31.5% in the first quarter of this year.

The cause of the taxi crisis is the departure of taxi drivers. During the social distancing period, some taxi drivers whose income decreased due to reduced floating population switched to parcel delivery, food delivery, and substitute driving jobs. The aging of taxi drivers also led to avoidance of night shifts. Among Seoul’s individual taxi drivers, who are about twice as many as corporate taxi drivers, more than half are aged 65 or older.

Mr. A said, "During the COVID-19 social distancing period, since money was not coming in, many switched to parcel delivery or substitute driving, but just because social distancing ended doesn't mean those people are returning to the taxi industry," adding, "Because the quota burden is heavy, no one wants to get behind the wheel again."

Meanwhile, the city plans to hold a public hearing to find solutions for the late-night taxi boarding difficulties. Along with discussions on taxi fare adjustments, the city intends to gather various opinions on increasing taxi operation rates and incentives for taxi drivers. The public hearing will be held on the 5th of next month at the Seoul Traffic Culture Education Center in Gwanak-gu.

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