President Yoon Suk Yeol said on Wednesday that he would not tolerate monopolistic practices in the banking and taxi app sectors, as he met with small business owners in Seoul to discuss his economic policies.
Yoon defends belt-tightening measures
Yoon, who took office in August, has been facing criticism for his austerity measures that aim to curb inflation and fiscal deficit. He has also been accused of neglecting the plight of the low-income and vulnerable groups amid the COVID-19 pandemic.
However, Yoon defended his policies as necessary to protect the public interest and ensure long-term stability. He said that his government was not cutting spending on welfare and social programs, but rather reallocating resources to more efficient and effective areas.
He also said that he was committed to creating a fair and competitive market environment, where small businesses and consumers can thrive. He said that he would crack down on unfair trade practices, corruption, and tax evasion by large corporations and conglomerates.
Yoon targets banks and Kakao Mobility
Yoon singled out two sectors where he said monopolies were harming the public: banking and taxi app services. He said that he would take measures to increase competition and transparency in these sectors, and protect the rights and interests of customers and service providers.
He said that he was concerned about the dominance of a few banks in the financial market, especially in the online banking sector. He said that these banks were charging high fees and interest rates, and offering low-quality services to customers. He said that he would encourage more entrants and innovation in the online banking sector, and regulate the fees and interest rates of existing banks.
He also expressed concerns about the business misconduct of Kakao Mobility Corp., the operator of the nation’s leading taxi-hailing service, Kakao T. He said that Kakao Mobility was abusing its market power to exploit taxi drivers and passengers. He said that Kakao Mobility was charging high commissions to taxi drivers, while offering low fares and discounts to passengers. He said that this was creating a vicious cycle of low income for drivers, low quality of service for passengers, and low profitability for Kakao Mobility.
He recommended taking measures like reducing the commission charges for taxi drivers to a level similar to credit card commissions, which is typically around 1 percent. He also suggested introducing a cap on the fares and discounts offered by Kakao T, and ensuring fair competition with other taxi app services.
Yoon listens to small business owners
Yoon held the meeting with small business owners at a cafe in Mapo District, western Seoul, as part of his regular economic policy meetings. He has convened 20 of these meetings so far, most of which were held at the former presidential office of Cheong Wa Dae. However, the latest event took place in the form of a town hall meeting, reflecting his intention to show that he was actively listening to public opinion.
The small business owners who attended the meeting included housewives, office workers, convenience store owners, and taxi drivers. They shared their opinions and suggestions on various issues such as inflation, taxation, regulation, digitalization, and social welfare.
Yoon listened attentively to their views and responded with empathy and sincerity. He said that he valued their feedback and would reflect it in his policy decisions. He also thanked them for their hard work and contribution to the economy.
