(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] The Korea Fair Trade Commission (KFTC) has initiated an investigation into KM Solutions, a subsidiary of Kakao Mobility, for suspected violations of the Franchise Business Act. On the 22nd, it was reported that the KFTC sent investigators to KM Solutions' headquarters last month to conduct an on-site investigation.

The investigation centers on allegations that KM Solutions has engaged in unfair contracts by charging commissions on fares collected from passengers hailed through other taxi-hailing apps such as Uber or Tada, or from passengers picked up through roaming operations on the street. The KFTC believes these commission contracts may violate franchise business regulations.

KM Solutions is responsible for managing all Kakao-affiliated taxis nationwide, excluding the Daegu and Gyeongbuk regions. Recently, the KFTC concluded its investigation into DGT Mobility, Kakao Mobility's franchise headquarters for the Daegu and Gyeongbuk regions, which was suspected of imposing excessive fees on franchise taxi drivers. A summary report, akin to a prosecutorial indictment, has been sent out.

Daegu City had previously reported DGT Mobility to the KFTC, claiming that the company charged commissions for calls received through other platforms like 'Daegu Ro' in addition to its own platform. The KFTC plans to hold a review session on this case within the second half of the year to decide on potential sanctions and their severity.

 

 

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