Seoul Mayor Park says taxi fare hike inevitable

By Kang Hyun-kyung

A taxi fare hike is unavoidable due to increased oil prices, Seoul Mayor Park Won-soon said Monday.

The city government will decide the expected rate hike by September.

In a radio program, Park said current fares in Seoul, which have been fixed for four years, have not reflected hikes in global oil prices, while taxi fares in other provinces and cities have been increased.

“I am planning to sort things out in the first half of this year and make a decision no later than August or early September,” the mayor said.

Currently the basic taxi fare for the first two kilometers in Seoul is 2,400 won ($2.2) and 100 won is added to the fare for each 144 meters.

Park noted that the fare hike must be in line with an improvement in services. “I understand that some people are angry about taxi services. A taxi fare hike should be accompanied by better customer service,” he said.

The mayor said compared with other global cities, Seoul has too many cabs. Tokyo has five taxies per 1,000 people; New York, 1.7; while Seoul has seven.

However, he admitted that reducing the number of taxies was a complicated issue, adding that he would consult with the central government, as well as taxi drivers.

In the meantime, Park had a meeting with taxi drivers to listen to their demands.

In January, then President Lee Myung-bak vetoed a taxi bill calling for cabs to use bus-only lanes and enjoy other benefits granted to operators of public transport.

The government has since worked on an alternative plan to stabilize the taxi industry plagued with the fallout of an oversupply of cabs, taxi drivers’ long working hours and poor working conditions.

There has been virtually no progress in the government’s stabilization plan over the past four months due to a wide gap between demands from taxi drivers and government proposals.