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South Korean Ride-Hailing Service VCNC Granted Exceptional Case Demonstrations to Foster Innovation

South Korean ride-hailing service company VCNC, a subsidiary of Socar, recently received a particular case demonstration approval from the Ministry of Science and Technology, Information and Communication.

In addition, the South Korean government introduced the regulatory sandbox program, also known as the particular case demonstration for companies, in January 2019.

The policy aims to promote innovation and new opportunities by giving local companies more freedom and less control.

VCNC's particular case demonstrations cover three areas: temporary approval for a GPS-based application taxi meter business, a platform-based temporary taxi driver qualification business, and a flexible taxi fare program.

Currently, taxi drivers manually enter fares from traditional taxi meters in their vehicles, and all taxi applications, such as Kakao T or Macron Taxi, operate similarly.

The GPS-based app meter service will automatically calculate taxi fares, overcoming regulatory barriers.

TADA light vehicles will be allowed to be driven without a taxi driver's license, addressing the decline in taxi driver license applicants due to the COVID-19 pandemic.

Applicants will be able to obtain a temporary driving permit and obtain permission within three months, provided they complete the required training.

The flexible fare system will be based on customer demand and vehicle supply, considering time, area, and distance.

This system will create different fare schedules on the market, which are unavailable for regular taxis.

The GPS-based application metering system will be adopted after a demonstration with the Korea Transportation Safety Authority.

However, the actual go-live date for TADA Light has yet to be determined.

Last month, TADA announced that TADA Light would be launched as a beta service.

VCNC highlighted its patented ride-hailing matching technology in a press release.

During the beta service phase, the company will collect ride-hailing passenger data, with plans to expand the number of cars by the end of the year.