Daejeon City to Lower Taxi Card Fees... Expected to Save 200 Million Won

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Daejeon City announced on the 9th that it has amended and signed a written agreement on taxi fare card payment with transportation operators Tmoney and Idongeui Jeulgeoum.

According to the agreement, from payments made after February 14 this year, the credit card commission rate will be reduced from an average of 1.59% to 1.54% for corporate taxis, and from 1.2% to 1.1% for individual taxis.

As of 2024, the total annual revenue of the taxi industry in Daejeon is estimated at 330 billion KRW. Applying the 0.05~0.1 percentage point reduction in commission rates to the total revenue, annual cost savings are expected to range from at least 165 million KRW to a maximum of 330 million KRW.

Since 2012, the city has covered the entire card commission fee from its budget to support the struggling taxi industry. However, this led to a decline in the industry's self-help efforts. As part of its taxi industry innovation plan, Daejeon City has continuously negotiated with transportation operators (Tmoney, Idongeui Jeulgeoum) and others to achieve lower commission rates.

Nam Sideok, Director of Daejeon City’s Transportation Bureau, stated, "This reduction in commission rates is not just about saving budget; it is an important turning point for enhancing the rationality and sustainability of public financial management." He added, "We will continue to actively negotiate with transportation operators and card companies to ease the burden on the taxi industry and ensure that citizens’ valuable taxes are used more efficiently."

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