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Korea Will License Ride-Share Services, Drivers
The South Korean government plans to require that ride-share services obtain taxi licenses, and their drivers hold a taxi driver license.
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The South Korean government plans to require that ride-share services obtain taxi licenses, and their drivers hold a taxi driver license.
The new regulations will take effect in the first half of 2020, according to the Ministry of Land, Infrastructure and Transport. The agency says the ruling aims to ensure that new ride-sharing businesses and the traditional taxi industry “can coexist in a mutually beneficial way,” The Chosunilbo reports.
The ministry also proposes creating a government body that would purchase taxi licenses and rent them out to ride-share startups. The scheme would involve an estimated 900 licenses per year at a cost of 60 billion won ($51 million), only 10% of which would be paid by the companies.
The Chosunilbo notes that the measure would make it illegal for startups to use rental cars in their fleets, as some do now to skirt current regulations about drivers using their own vehicles.
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