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Photo = Kakao Mobility |
[Alpha Biz= Kim Jisun] Kakao Mobility is under investigation by South Korea’s Fair Trade Commission (FTC) over allegations that it imposed excessive commission fees on designated drivers and engaged in unfair business practices.
According to industry sources on Wednesday, the FTC launched an on-site inspection of Kakao Mobility late last year.
The regulator is reportedly examining whether Kakao Mobility abused its market power by charging designated drivers excessively high commissions, a practice often described as “gapjil,” or unfair treatment by dominant companies.
In October last year, the Korean Confederation of Trade Unions’ Service Industry Federation and the National Designated Drivers’ Union held a press conference accusing Kakao Mobility and its call-taxi subsidiary CMNP of unfair practices. The union claimed the companies charged designated drivers a commission of up to 20% of fares.
The union argued that the rate is disproportionately high compared with taxi drivers, who pay a commission of around 2.8%. Allegations also include claims that drivers were pressured into purchasing paid dispatch vouchers in order to receive ride assignments.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
