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Taxi fares will be raised from June 1st and are about to get much more expensive.
The basic fare for medium-sized taxis will be increased by 1,000 won, from 3,800 won to 4,800 won, while the basic distance of 2 km will be maintained.
The distance rate will be adjusted from 133m to 132m per 100 won, and the hourly rate will be adjusted from 34 seconds to 33 seconds per 100 won. On average, this represents a 15.6% increase in fares per ride.
For deluxe and large-sized taxis, the basic fare will be increased by 1,500 won, from 6,000 won to 7,500 won, for up to 3 km. Afterward, the distance fare will be increased from 141 to 140 m per 200 won, and the hourly rate will be increased from 34 seconds to 33 seconds per 200 won. This represents a 4.3% increase in fares per km compared to the current rate.
Late-night surcharges will be applied from 11 p.m. to 4 a.m., which is an hour earlier than the current midnight to 4 a.m.
However, a 30% surcharge will be applied for the midnight to 2 a.m. section, and a 20% surcharge will be applied for the remaining sections.
The taxi fare increase was approved by the Korea Economic Policy Institute in March 2023, the transportation innovation committee in May 2023, and the Busan Metropolitan City Price Countermeasure Committee in May 2023.
The decision was made to reflect the circumstances of the taxi industry, including the non-reflection of transportation cost increases, accumulated deficits due to COVID-19, and a decrease in income due to the departure of transportation workers.
The city of Busan has been discussing ways to strengthen competitiveness and develop the taxi industry by organizing the “Taxi Development Roundtable” composed of various layers such as the city council, industry, labor union, civic groups, and experts. The discussions on taxi fare adjustment continued during this time.
The Price Countermeasure Committee has decided to apply late-night surcharges from 11 p.m., which is an hour later than in the metropolitan area.
This is due to concerns about the contraction of business activities by small business owners and the increased burden on citizens.
Jeong Im-soo, director of Busan Metropolitan City Transportation Bureau, said that while the basic fare of 4,800 won may seem the same as the Seoul fare, Busan has maintained the same distance of 2 km to minimize the burden on citizens.
The city is expecting a smooth supply of taxis to be achieved through the application of differentials.
The city strongly demands that taxi operators prepare self-rescue measures, such as improving the quality of services, to minimize citizen inconvenience caused by taxi fare hikes. They also confirm that the increased revenue from fare hikes will be directly reflected in the poor transportation workers’ wages. Implementation plans, such as punishment, are also being prepared.
In addition, the Dongbaekjeon cashback was raised from 5% to 7%, and discount coupons were issued in consultation with Dongbaek Taxi operators to reduce the burden on citizens.
