Taxi fare increase inevitable in Seoul

While Seoul taxi fares are set to increase this year, taxi drivers, companies and the city are at crossroads about how much the rise should be and when it should be introduced. / Korea Times file

By Ko Dong-hwan

Seoul’s first taxi fare increase in five years looks inevitable, with the city unions agreeing to an increase within this year. It remains to be seen how much the increase will be and when exactly it will begin.

The Korean Taxi Workers’ Union and the Seoul Private Taxi Association say the rise in the starting fare should be no more than 1,000 won ($0.94). They are worried that increasing the fare too much will cause the industry to lose passengers.

“In October 2013, when the starting fare increased by rather an affordable amount from 2,400 to 3,000 won, the outcome caused only a brief public outcry, which soon dissipated,” says the Korean Taxi Workers’ Union Seoul Office.

“If the increase gets out of proportion this time, the repercussions could be serious. It will be worse than not having initiated the measure at the first place.”

While those asking for the fare increase to be kept small are concerned about passengers, the opposing group is tilted toward improving drivers’ working conditions.

Korea Taxi Union wants the starting fare to increase by at least 1,500 won, saying any rise of 20 percent or less will not be enough.

“Taxi drivers who work for companies return part of their earnings to their operators at the end of every shift,” the union says. “The amounts returned to companies go up when there is a rate increase. If the fare increased is not enough, the drivers will return the increased proportion to the companies while there will be not enough money to improve working conditions. In fact, it will worsen the situation for the drivers.”

The increase will take effect some time after March, when the city’s research on the necessity for an increase and how rises in the price of LPG taxi fuel and in the minimum hourly wage for workers nationwide will affect the industry is due to close. The outcome of the research will determine the level of the fare increase.

People involved in issue mostly agree that an increase is inevitable, because the starting fare has been frozen for five years while 40 percent of corporate taxi companies are short of drivers.

Drivers argue that the increase should be introduced before April, because any delay will be overshadowed by the general election in June and prolong the increase indefinitely.

But the city says discussion among every involved party ― including the drivers unions, companies, civic groups and experts ― must be a priority. It predicts there will be no increase before April.