“I think the tax fare was 2,000-2,500 won higher than usual. The gas price has gone up and so has the price of restaurant meals. They say everything but your salary is going up, and I can really feel that.”

Jeon (54) took a taxi from Severance Hospital in Sinchon to Seoul Station on February 1 and was surprised after looking at the fare flashing on the taximeter. He knew that the basic taxi fare in Seoul went up 1,000 won, but when he saw that the fare was more than 2,000 won higher than before, that’s when he actually “felt” the inflation.

From Wednesday, the basic taxi fare in Seoul went up to 4,800 won. Not only did the base fare go up 25% (1,000 won), but the standard rate according to time and distance also went up. So for taxi users, it felt like the rate actually rose much higher.

Im (29), an employee of a company, said, “The taxi fare for my 10-minute commute from Seongsu-dong to Oksu-dong was about 5,000 won, but now it’s up 1,000 won,” and added, “I think I’ll have to ride the subway from now on. I’m worried because they say the public transportation rates will also go up in April.” Seong Gi-tae (24), a university student who travels from Suwon, Gyeonggi to Seoul to go to school, also said, “I often took a taxi when traveling short distances, but I plan to ride the bus from now on.”

Some citizens said that it would be hard to take a taxi if they didn’t receive any support for transportation expenses. Usually, a lot of people use taxis late at night after working overtime because there are no alternatives, but from February 1, the basic late-night fare from 11 p.m. to 2 a.m. jumped to 6,700 won.

Jo Geum-mi (25), a graduate student, said, “Maybe if I’m paying with our lab’s corporate credit card, but if I have to pay for the taxi fare with my money, I’m not riding.” She further said, “Prices have soared, but the wages of a graduate student have practically been frozen for a decade, and the personal tutor fees have also been pegged, so it’s tough.” Hong Yu-ri (24), who was hailing a taxi after arriving at Seoul Station from Daegu Wednesday morning, said, “I am taking the taxi since I can pay with the company credit card. But if I had to pay for the ride, I wouldn’t be taking the taxi.”

Now that the fares have gone up, some people voiced expectations for better services. Gim (55), a passenger, said, “The quality of the general transportation service should go up, such as obeying traffic signals and no more sudden acceleration or brakes.” The Seoul metropolitan government announced on Tuesday that they would review measures to end support, such as fuel subsidies and communication expenses, for taxi drivers against whom multiple complaints on poor service have been filed.

Taxi drivers appear to welcome the higher fare, since they had struggled with fewer passengers and smaller revenues after the spread of Covid. Given the soaring price of living, some drivers claimed that the fare was raised at a minimum. However, it was also clear that they were worried about the number of passengers decreasing.

Choi (72), a taxi driver, said, “Since the base fare jumped by 1,000 won at once, the citizens will probably feel that the burden is heavier than the rising prices of restaurant meals and drinks.” He continued and said, “Usually, when they raise the taxi fare, the number of passengers drop for a couple of months and bounce back up, but I don’t know what it will be like this time, since prices in general have gone up.” Choi also said, “At night, the rate goes up even more, so there could be a significant difference in income, but during the day (the fare hike is not so significant), I wonder if it will be effective (in increasing the supply of drivers).”

Song Nam-geun (68), another taxi driver, said that the money he earned from driving a taxi for four hours from 7 a.m. Wednesday actually decreased from before. He said, “Usually, I earn over 60,000 won, but today, I only earned slightly more than 40,000 won.” He further said, “Taxi drivers should be able to earn enough money to at least maintain their lives,” and added, “The rate needs to be raised to a level on par with advanced nations.”