“We don’t require a high level of education, and it doesn’t matter if you’re a man or a woman. All you need is a driver’s license. Just give it a try for six months!”
This was the message heard at Busan Citizens Park on the morning of Oct 7., where a recruitment fair for corporate taxi drivers was held. Facing a severe shortage of drivers, Busan Metropolitan City and the Busan Taxi Conveyance Association teamed up for their first joint recruitment event to attract potential candidates.
Ten corporate taxi companies from Busan set up booths at the event, showcasing three pristine taxis to catch people’s attention. Even union leaders were present, eager to recruit new drivers.
“Why not give taxi driving a try? The city and companies will help you adjust, and they’re even offering a monthly allowance of 400,000 won (about $291) for six months,” shouted Lim Chae-woong, Director of the Korean Public & Social Services and Transport Workers’ Union, Busan branch, to passersby.
Lee Dong-yul, CEO of Hannam Transportation, voiced his frustration: “We have 144 taxis, but only 75 drivers. Half of our fleet is sitting idle.” He added, “I’m here because our company is facing serious challenges due to this shortage.”
Despite the efforts, the event yielded little success. Over the course of seven hours, from 10 a.m. to 5 p.m., 120 people visited the booths, but no one applied for the position. However, Bae Jae-won, an official from Busan’s Taxi Transportation Division at the city’s Transportation Innovation Bureau, remained optimistic: “We didn’t expect to fill all the vacancies immediately,” he said. “We plan to continue promoting the recruitment drive through subway ads and YouTube videos.”
The number of corporate taxi drivers in Busan has halved over the past five years, falling from 10,649 in 2019 to just 5,630 last month. As a result, almost 40% of the city’s 9,500 corporate taxis are off the roads due to the driver shortage. One industry insider explained, “During the COVID-19 pandemic, many younger drivers left for the delivery industry, and with monthly salaries averaging around 3 million won, it’s been tough to attract new drivers.”
A Busan city official expressed concern: “We’ve been receiving numerous complaints from residents about the difficulty of finding a taxi, and we’re especially worried as the year-end holiday season approaches, when demand peaks.”
Taxi companies are also feeling the strain. One industry representative noted, “In 2022, a well-established taxi company that had been operating for over 60 years went bankrupt, and two or three others are on the verge of closing. It’s hard to predict when they might shut down.”
The driver shortage isn’t limited to Busan. Seoul is facing a similar challenge. In response, the Seoul city government is considering hiring foreign drivers. Last month, Seoul launched a pilot program to hire Filipino housekeepers, and now they are exploring the option of employing foreign taxi drivers to ease the shortage.
A report published last month by the Seoul Institute, titled “Plans for Introducing Foreign Workers into the Transportation Industry,” stated, “Seoul needs an additional 40,000 taxi drivers to operate at full capacity, but under current conditions, it’s nearly impossible to recruit new drivers. Hiring foreign drivers is the most practical solution.”
The report suggested that each corporate taxi should have at least two drivers to allow for shift work and recommended that foreign drivers receive local language and driving training before being hired by companies. However, there are hurdles to overcome, especially regarding visa regulations. The report emphasized that “currently, only foreigners with Overseas Korean (F-4) and Work and Visit (H-2) visas can drive taxis. We need to expand eligibility to include those with Non-professional Employment (E-9) visas, such as the Filipino housekeepers.”
According to data from Lee Sang-wook, a member of the Seoul Metropolitan Council (People Power Party), the number of corporate taxi drivers in Seoul has dropped by 34% over the last five years, from 30,527 in 2019 to 20,171 last month. Despite this decline, the number of corporate taxis has remained steady at 22,603.
