Taxi Odd-Even System Lifted... Measures to Ease Late-Night Ride Shortages

Legislative and Administrative Notice on Amendment to Subordinate Regulations of the Passenger Transport Service Act
Abolition of Requirements for Conversion to Large and Premium Taxis... Relaxation of Taxi Vehicle Age Standards, etc.

Photo by Yonhap News

The Ministry of Land, Infrastructure and Transport announced on the 31st that following the 'Late-night Taxi Shortage Relief Measures' announced earlier this month, it will issue an administrative notice for the amendment of three administrative rules and a legislative notice for the amendment of five enforcement decrees and enforcement rules of the Passenger Transport Service Act.

The amendments to the subordinate laws of the Passenger Transport Service Act mainly include the lifting of taxi rotation system restrictions.

The taxi rotation system was implemented after the 1973 oil crisis as a fuel-saving measure. It has been in operation for 50 years, forcing drivers to take days off and being applied differentially to mid-sized taxis (about 98% of all taxis), which has acted as a factor reducing taxi supply capacity. In Seoul, drivers were forced to take a day off once every three days.

Accordingly, taxi rotation will not be applied in areas such as Seoul where taxi boarding difficulties occur, and the amendment to the administrative rule (Operational Guidelines for Taxi System) is expected to be promulgated on November 22 and will be implemented immediately from the date of promulgation.

Furthermore, if local governments wish to operate or extend the rotation system, they must comprehensively evaluate the operation results of the rotation system considering taxi supply and demand, opinions from the public, taxi industry, and experts, and the Ministry of Land, Infrastructure and Transport's Taxi Policy Deliberation Committee must review the operation or extension of the rotation system every two years.

The requirements for conversion to large vans and premium taxis will be abolished, and the standards for eco-friendly premium taxis will be relaxed.

Currently, the taxi market has increasing demand for large vans and premium taxis, but mid-sized taxis constitute the overwhelming majority. There were high entry barriers for large vans and premium taxis (about 1% of all taxis), limiting consumer choice.

Going forward, the requirement for personal taxis to have a 'mid-sized → large van or premium taxi' conversion condition (5 years accident-free) will be abolished, allowing conversion to large vans or premium taxis through registration (local government). The power output standards for eco-friendly vehicles that can be used as premium taxis will be lowered to the level of internal combustion engine vehicles to promote the spread of eco-friendly taxis.

Overnight parking outside corporate taxi garages will be allowed, and shift changes outside the garage will also be possible.

Currently, corporate taxi drivers return to the garage (corporate taxi company) after finishing late-night operations, where overnight parking (00:00?04:00) and shift changes take place, reducing taxi operation efficiency and increasing drivers' commuting inconvenience.

Many garages are located on the outskirts, and inefficiencies such as selective passenger picking and increased operating costs occurred during the movement to and from the garage for taxi operation start/end (commuting and shift changes).

Accordingly, if a corporate taxi driver operates the same vehicle for two or more days and secures a separate parking space, overnight parking will be allowed in places other than the garage, such as near the driver's residence, to improve late-night taxi operation efficiency. Also, alcohol checks for taxi drivers conducted before shift changes will be improved to be possible outside the garage.

Taxi vehicle age standards and vehicle allocation period limits will be relaxed.

The vehicle age system rigidly restricts vehicle operation based on uniform usage periods, and the vehicle allocation period limit for taxis (within 1 year) has not sufficiently reflected improvements in vehicle durability and quality since the system was introduced in June 2002.

Therefore, the taxi vehicle age system will be operated flexibly reflecting local government characteristics, allowing operation even if the usage period is reached but the mileage is low. The vehicle allocation period limit will be relaxed from 'within 1 year → within 2 years' after vehicle registration, enabling near-new vehicles to be used as taxis.

Photo by Asia Economy

The obligation to install taxi roof signs on franchise taxis will also be exempted.

Taxi roof signs were external regulations for mid-sized taxis based on the premise of cruising operations in the past, but platform-based mid-sized taxis can operate with pre-booking and pre-determined fare systems, making taxi roof signs unnecessary.

Therefore, the exemption from the obligation to install taxi roof signs, currently applied only to large vans and premium taxis, will be extended to platform franchise taxis to establish a foundation for differentiation and premium services in mid-sized taxis.

Kim Soo-sang, Director of the Transport and Logistics Office at the Ministry of Land, Infrastructure and Transport, said, "From November, visible measures such as flexible late-night call fees, late-night operation groups for personal taxis, and lifting of the rotation system are expected to be fully implemented." He added, "At the same time, we will promptly proceed with the amendments to subordinate laws to boldly reform unreasonable regulations that have hindered taxi supply and quickly resolve public inconvenience caused by the taxi shortage."

The full text of the amendments can be found on the Ministry of Land, Infrastructure and Transport website under 'Information Center / Legal Information / Legislative Notice & Administrative Notice.' If you have any opinions on the amendments, you can submit them by mail, fax, or through the Ministry's website.

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