"Strike Two, You're Out": Overcharging Van Services Face Upgraded Regulations | Be Korea-savvy

“Strike Two, You’re Out”: Overcharging Van Services Face Upgraded Regulations


The margin for error has grown slim for van service operators guilty of overcharging fares, as the government announced it will trim the existing "Three Strikes" rule down to two chances at-bat before revoking operating licenses. (Image: Yonhap)

The margin for error has grown slim for van service operators guilty of overcharging fares, as the government announced it will trim the existing “Three Strikes” rule down to two chances at-bat before revoking operating licenses. (Image: Yonhap)

SEOUL, Nov. 11 (Korea Bizwire)The margin for error has grown slim for van service operators guilty of overcharging fares, as the government announced it will trim the existing “Three Strikes” rule down to two chances at-bat before revoking operating licenses.

The Ministry of Land, Infrastructure, and Transport (MLIT) announced on November 10 that a revision to the enforcement ordinance of the Trucking Transport Business Act will be legislated. The legal modifications are intended as a follow-up measure to the ‘Comprehensive Plan for Traffic Safety in 2017’ that was publicly disclosed last April.

Under the revised policy, tow trucks will also be given “two strikes” for reckless driving, after which operators will likewise face revocation of their licenses.

The measures will be enacted to tamper down on future swindling by dishonest drivers. One example of exploitation occurred when Thai tourists were charged 800,000 won by a van service for a ride from Incheon International Airport to Cheolwon in Gangwon province, five times the actual price of 200,000 won. 

One example of exploitation was when Thai tourists were charged 800,000 won by a van service for a ride from Incheon International Airport to Cheolwon in Gangwon province, five times the actual price of 200,000 won. (Image: Yonhap)

One example of exploitation occurred when Thai tourists were charged 800,000 won by a van service for a ride from Incheon International Airport to Cheolwon in Gangwon province, five times the actual price of 200,000 won. (Image: Yonhap)

Going forward, a penalty of 500,000 won is to be levied when a driver is caught cheating customers. Additionally, the driver’s supervisor will be punished with a 30-day suspension for the first offense, and an “Out” for the second.

Since van services are not classified as taxis, they are barred from charging rates based on distance traveled. Rather, their business model is to charge for freight volume or the number of passengers. Moreover, passengers without luggage cannot be served.

“We expect illegal overcharging to be uprooted by this measure.” said an MLIT official. “After gathering opinions from relevant groups and organizations and going through consultations of concerned agencies, the measure is planned to be enforced in January next year.”

Lina Jang (linajang@koreabizwire.com)

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