Kakao Mobility to allocate $15 million for programs for affiliate drivers

A Kakao T Blue taxi parked near Seoul station in February, 2023 [YONHAP]

Kakao Mobility, Korea’s largest ride-hailing service provider, will allocate 20 billion won ($15 million) over next three years to improve labor conditions for its affiliated taxi drivers.

The Kakao subsidiary plans to establish a foundation by the first half of this year to operate the fund, with a goal of beginning operations by the latter half of this year.

The foundation will develop various projects in line with its objective, such as enhancing the development and competitiveness of the taxi industry; creating a safe labor environment for taxi drivers and maintaining their welfare; creating an industry ecosystem that encourages mutual growth with mobility startups; and carrying out research and development into policies that can strengthen mobility platforms’ competitiveness.

The money injected into the foundation is 40 percent of what the company initially promised back in 2022 when it announced that it will spend 50 billion won to enforce its social responsibilities, such as supporting taxi drivers’ medical welfare and providing accessible transportation to people with disabilities.

The new foundation will oversee all of the related campaigns that the company has been running or plans to start in the future.

“As the nation’s leading mobility company, we have consistently pondered ways to coexist with various consumers, workers and startups within the industry,” said Kakao Mobility CEO Ryu Gung-seon. “We will strive to create an ecosystem where we can harmoniously coexist and collaborate with our counterparts, and fulfill our social responsibilities.”

BY LEE JAE-LIM [lee.jaelim@joongang.co.kr]