Yoon slams Kakao T, big banks for monopolistic practices

Nov 02, 2023, 10:27 am

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President Yoon Suk-yeol speaks during an economic policy meeting with housewives, office workers, small business owners and taxi drivers at a café in Mapo-gu, western Seoul, on Nov. 1, 2023./ Source: Yonhap News

AsiaToday reporter Hong Sun-mi

President Yoon Suk-yeol on Wednesday slammed Kakao T for its monopolistic practice, saying such tyranny on taxi drivers is “immoral,” and stressed the government should take measures against them.

Yoon made the remarks during an economic policy meeting with housewives, office workers, small business owners and taxi drivers in Seoul, after a taxi driver who attended the meeting pointed out Kakao T’s excessive commission charges for tax drivers. Yoon ordered the government to take measures, saying, “It is immoral and must be sanctioned by the government.” Kakao T is the nation’s leading tax-hailing service operator.

The president pointed to the “predatory” practice of eliminating all competitors by charging little money or setting at low price, and then monopolizing the market to raise prices. “This is very immoral among monopolistic practices.”

Yoon also called out major banks for their monopolizing of the sector. “Korean banks are engaged in a kind of monopoly, and often overuse their power. Compared to corporate loans, household loans and small business loans have a lower default rate and stable loan bonds. The banks should change in this manner and change their attitude,” he said. “The monopolistic form of banks should not be ignored.”

Financial authorities are expected to improve the system to cut interest rates soon upon Yoon’s remarks on the need to cut interest rates on small businesses and improve the monopolistic system of commercial banks.

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