Gwangju Taxi Association: "Mid- to Long-Term Plans Needed Alongside Fare Increase"

"Cost Calculation Should Consider Inflation Forecasts for 2026-2027"

Taxi Fare Increase. Photo is not related to specific expressions in the article.

The Gwangju Taxi Transportation Business Association has called for the establishment of mid- to long-term measures alongside the taxi fare increase.

In a press release on September 16, the association stated, "Over the past 30 years, approximately 3,200 corporate taxi drivers, accounting for 56% of the workforce, have left the industry," adding, "While the minimum wage and public servant salaries have risen significantly, taxi fares have remained relatively low, causing drivers' wages to stagnate at the minimum wage level."

The association pointed out, "During the same period, the minimum wage increased by 857% and the starting salary for public servants rose by 591%, but the base taxi fare only increased by 430%." They argued, "As a result, drivers' wages only rose by 319%, ultimately dropping to the minimum wage level."

They identified the fundamental cause of low taxi driver wages as follows: "Local governments, aiming to curb inflation, have failed to comply with the Ministry of Land, Infrastructure and Transport directive requiring fare reviews every two years. Instead, fares have been adjusted on average every four years." They further explained, "Consequently, taxi fares have not kept pace with minimum wage increases, and inflation control measures have limited fare increases to only half of what is needed, making it impossible to guarantee a living wage."

The association emphasized, "Although recent cost increases have been reflected in the taxi fare hike decision for this year, the accumulated cost shortfall over the past 30 years remains unresolved." They stressed the need to calculate costs by taking into account inflation and minimum wage forecasts for 2026 and 2027.

They also added, "Currently, taxi drivers are leaving because their wages do not meet the cost of living. The Gwangju living wage (12,930 won per hour) should be reflected," and "It is also necessary to guarantee an appropriate profit margin of about 10%."

The taxi association presented the following urgent tasks for the future: ▲ Prompt implementation of the 2025 fare increase plan ▲ Compliance with the biennial fare review obligation under the Ministry of Land, Infrastructure and Transport directive ▲ Establishment of a mid- to long-term fare adjustment plan applying the Gwangju living wage ▲ Preparation of standards for reflecting omitted costs and incorporating them into ordinances.

Meanwhile, the Gwangju City government plans to implement a fare increase this year, including a 500-won rise in the standard fare for mid-sized taxis, raising overall fares by about 13.3% after review by the Price Countermeasures Committee.

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