Song Jin-woo, the head of Uber Taxi Korea, has sparked controversy for his remarks indicating that he would not raise issues with corporate taxi operators joining as franchise affiliates even if they do not adhere to the business plans approved by the Ministry of Land, Infrastructure and Transport. The Ministry of Land, Infrastructure and Transport stated that if the remarks are true, it would constitute a clear violation of the Passenger Vehicle Transportation Business Act, and administrative actions such as corrective orders or business suspensions should be implemented.
According to recordings obtained by ChosunBiz on the 23rd, Song Jin-woo stated at a franchise business briefing held for corporate taxi operators in the Seoul area that, "While the Ministry of Land, Infrastructure and Transport advises that wrapping (attaching brand designs to the exterior of vehicles) is required, I will not terminate or penalize the franchise if wrapping is not done."
Song noted, "There are many questions asking whether wrapping is mandatory or whether we can make the Uber wrapping smaller or not do it at all," and added, "While the Ministry of Land, Infrastructure and Transport advises that wrapping is required due to the declaration system in the franchise business law, we will not terminate the franchise if wrapping is not actually done." He continued, "While we can ask, 'Why didn't you wrap it?' there are no actual penalties."
Song's remarks effectively indicate a refusal to follow the business plans approved by the Ministry of Land, Infrastructure and Transport. Uber submitted a business plan to the Ministry of Land, Infrastructure and Transport that included brand wrapping and exterior design, and although it was approved, it is reported that a significant number of Uber franchise taxis are currently operating without wrapping. Skipping the wrapping work allows taxi companies to attach external advertisements to generate revenue and reduces expenses.
A representative from the Ministry of Land, Infrastructure and Transport stated, "If taxi platform operators have submitted a business plan, then they should naturally comply with the wrapping as per the plan. If they do not comply, they must receive approval for changes," and noted, "If they operate differently from the approved plan, they could be subject to administrative actions such as fines, penalty surcharges, or business suspension."
According to the Passenger Vehicle Transportation Business Act, operators must receive approval to change the business plans they have been authorized. Specifically, it states that administrative actions will proceed even in cases where 'approval for changes to the business plan has not been obtained or a change declaration has not been made.' It explicitly allows for business suspension in case of violations.
After parting ways with T Map Mobility in December last year, Uber has begun independent operations in the domestic taxi platform market but is significantly lagging behind Kakao Mobility, which operates KakaoT. According to Mobile Index, the monthly active users (MAUs) of Uber taxi have declined for four consecutive months this year, with last month's MAU at 592,427. This is only 4.6% of KakaoT's MAU (12,894,451).
Since being appointed as the representative of UTI, a joint venture with T Map, in September 2023, Song has led Uber Taxi Korea since March last year.
An industry representative in the mobility sector noted, "Uber appears to have made imprudent remarks to appease corporate taxis that are concerned about wrapping expenses and advertising revenue, realizing that they need to increase the number of affiliate transportation companies to expand its business in Korea." He added, "Explaining to transportation companies that wrapping is not necessary essentially conveys the message of 'it's okay to break the law,' reflecting an attitude that disregards the Korean government and its regulations."