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Taxi Fares of Five Major Cities Will Increase by 20 Percent Next Year

Taxi Fares of Five Major Cities Will Increase by 20 Percent Next Year

Posted November. 24, 2004 22:56,   


Starting from next year, taxi fares in five major cities, Seoul, Busan, Incheon, Gwangju and Ulsan, will increase by around 20 percent.

According to the announcement made by the Seoul Taxi Transportation Union yesterday, the taxi service unions of five big cities are moving forward to increase taxi fares during the first half of next year, which will be the first increase since the freezing policy in September 2001, in order to ameliorate financial difficulties of taxi businesses.

As for Seoul, the taxi companies requested a 28 percent increase last September, and Seoul city is now in the process of studying an appropriate fare, which is forecasted to be concluded by next February or March.

Taxi unions in the rest of the four cities, Busan, Incheon, Gwangju and Ulsan, are supposed to request 15-20 percent fare increases of each city soon, and their requests are likely to be applied within the first half of the next year.

Taxi industries in Daegu and Daejon are not moving forward with fare increases for fear that the management status of taxi businesses may get worse due to a possible decrease in the number of passengers.

Since the fare increase by 24.4 percent on September 2001, Seoul taxi unions claim the upcoming fare raise should be at least more than 20 percent, considering that fares have been frozen until now regardless of the increase of prices of commodities and labor costs.

If the taxi fare in Seoul city rises up to 28 percent as taxi companies have requested, the fare for five kilometers, which is an average riding distance, will increase to 4,200 won from the current 3,300 won.

At present, 1,600 won is applied by at the first two km as a base rate, and 100 won per either 168 meters or 41 seconds is added from that point.

Chi-Young Shin higgledy@donga.com