Kakao Mobility to revamp taxi commissions after President Yoon criticism

Kakao Mobility said it will shake up the commission structure of its taxi business as Korean President Yoon Suk Yeol slammed the mobility firm for its monopolistic position.

Kakao Mobility said it will overhaul its taxi business' commission system on Wednesday evening. [NEWS1]

Kakao Mobility said it will shake up the commission structure of its taxi business as Korean President Yoon Suk Yeol slammed the mobility firm for its monopolistic position.

“Kakao Mobility decided to hold an emergency meeting with taxi drivers to reform our commission structure,” said the company in a release Wednesday evening.

“Upon collecting taxi drivers’ opinion, we will roll out a complete overhaul of our commission system.”

Kakao Mobility’s statement comes as President Yoon pointed out the mobility firm for being "very tyrannical by taking advantage of its monopoly position” at a town hall meeting with some 60 Koreans Wednesday.

“[Kakao Mobility] is wiping out competitors by collecting very little or no fee and then when it monopolizes the market, it raises up the price,” Yoon said.

Kakao Mobility, an affiliate of Korea's IT giant Kakao, is the No. 1 taxi operator in Korea, taking up more than 90 percent of the market share.

Its commission rate is known to be between 3 to 5 percent, according to industry sources.

Taxi drivers, affiliated to Kakao Mobility have been requesting for a markdown in the commission rate, citing rivals where the rate is 0.5 to 2.5 percentage points lower.

“Regarding the latest concerns raised recently, we take it very seriously, thinking that it is the voice of Koreans and the industry about our businesses,” Kakao Mobility said in the release.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]