A 100-won taxi and regulatory reform

Around 30 percent of 60,000 residents in Seocheon County of South Chungcheong Province are 65 years or older. Out of some 700 villages in the county, 23 villages have never seen a bus since the time when Korea was liberated from Japan. The elderly had to walk for more than half an hour to see a doctor or go to a market in town. Now, these villages have a taxi, which cost only 100 won (0.1 U.S. dollar). It is called a “hope taxi” introduced by the county in June last year.

Some might worry about what if people want to take a taxi to go to Seoul and Busan at 100 won, but they don’t need to. The taxis run only two to four days per week connecting the villages to the town. As they are offered at minimum levels of transportation necessary for the residents, it cost only 100 won (0.1 dollar) to 1,300 won (1.22 dollars) per ride. It originally costs 6,000 won (5.6 dollars) to 13,000 won (12.2 dollars) for the ride but the county makes up for the cost. With the annual subsidy of 80 million won (74,800 dollars), the elderly can go to the 5-day market and see a doctor.

As the 100 won taxi became known to the rest of the country, some 70 counties and cities plan to follow suit. The candidates for the June 4 local elections are pledging a “100-won taxi.” But things change depending on who takes the system. The idea can make a local government bankrupt, if it is adopted regardless of its own financial conditions. Naju City of South Jeolla Province had failed to introduce a similar “village taxi.” But the Seocheon County customized the Naju model to its own conditions. It was a pledge made by Na So-yeol, a three-time Seocheon governor since 2002.

At first, the Seocheon County tried to introduce the new system by proposing an ordinance related to the “Passenger Transport Service Act.” However, the proposal was dumped after South Chungcheong Province ruled that it was in violation of three laws including the Support and Promotion of Utilization of Mass Transit System Act. Although the officials could have given up due to too many regulations blocking financial support to taxis, they delved into rules and laws again. They eventually found a provision of the Local Autonomy Act, which mentions the promotion residents’ welfare, based on which they created a “hope taxi.” The county’s 100 won taxi proved that officials’ willingness and creative ideas can produce great services for residents.

Editorial Writer Shin Yeon-soo (ysshin@donga.com)