SUWON — The city of Suwon will launch a voluntary taxi reduction program in 2027 to address an oversupply of cabs.
The move follows warnings that a prolonged mismatch between taxi supply and demand deepens financial strain on operators and erodes service quality, making a phased reduction necessary.
The city said on the 15th that it held the first meeting of its taxi reduction committee for 2026 a day earlier at the city council's community space.
The committee discussed annual reduction targets, compensation levels and priority rules for payouts. It voted to cut 30 corporate taxis in 2027, with compensation set at 50 million won ($34,000) per vehicle.
The oversupply is evident in the numbers. Under Suwon's fifth taxi supply notice, the appropriate number of taxis for Suwon is 4,370. The city currently has 4,700 licensed taxis, or 330 more than that level. When there are more taxis than needed, fare revenue is spread thinner, adding to the financial burden on drivers and operators. Excessive competition also encourages overwork behind the wheel and can undermine the stability of service for residents over the long term.
Suwon plans to cut a total of 70 taxis — 30 in 2027 and 40 in 2028. The city said the reduction is not a simple cut in licenses but a structural measure to secure the long-term sustainability of the taxi industry.
The decision will be finalized after review and approval by the Gyeonggi Province taxi reduction committee, followed by approval and public notice from the Ministry of Land, Infrastructure and Transport.
"We will ease the taxi oversupply step by step to improve business conditions in the industry," said Park Sun-hee, head of Suwon's public transportation division. "We will work to ensure that residents can use a stable taxi service."