Republic of Korea: Fair Trade Commission issued corrective order and imposed a KRW 3.88 billion fine on KM Solution for anti-competitive conduct in KakaoTaxi’s operations

On 28 May 2025, the Fair Trade Commission fined KM Solution KRW 3.882 billion over unfair contract terms in KakaoTaxi’s operations. KakaoTaxi was found to charge taxi drivers a 20% franchise fee for total fares, including for the use of its dispatch platform even when riders were not booked through KakaoTaxi's app (KakaoT). KM Solutions, the franchise headquarters of KakaoTaxi, has been ordered to immediately stop charging 20% fees on rides hailed by street or through a competitor's app, such as Uber or Tada. KM Solutions must also revise contracts to clearly state that fees apply only to KakaoT app-dispatched rides and negotiate with drivers to adjust past overcharges.