'Anti-Tada' bill

Innovation is possible without political consideration

A National Assembly committee has passed a revision bill aimed at banning Tada, a ride-hailing service operator. After the decision was announced Friday, startup firms criticized the Assembly ― and the administration ― for choosing to protect the vested interests of taxi firms ahead of the general election next year instead of supporting innovation.

If the bill is passed at the Assembly's plenary session, Tada would have to quit its app-based business within 18 months or obtain a taxi service platform license, which means its services will be subject to regulations for taxi firms.

So it was natural that Lee Jaewoong, chief executive of car-sharing firm SoCar, which owns Value Creators & Company that operates the Tada service, posted on Facebook that he was "speechless" on hearing the decision. He said the Assembly and the government had ignored people's convenience and new industries that had huge growth potential, instead choosing to serve the interests of taxi firms. "They are protecting the past to kill the future," Lee said.

We understand his frustration. Kim Sangjo, Cheong Wa Dae chief of staff for policy, said the government could not neglect the hardships that hundreds of thousands of cab drivers would suffer from the Tada service. However, Lee claimed the government did not even have accurate data on how much the existing taxi firms would suffer.

It was partly true that banning the Tada service was a political decision ahead of the crucial election. But the real problem is that South Korea could lag in the global ride-hailing market, which is anticipated to grow rapidly with the development of related technologies. South Korean conglomerates, such as Hyundai Motor, SK and Naver have given up investing in the local market due to regulations and unpredictability, and instead opted to invest in foreign firms. This is very sad.

The country's ban on Tada would be another example of politics killing innovation. The Assembly should have enough time to review the bill from a broad perspective for the benefits of the people and the nation's future.