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Coupang Flex delivered by car.
The Viva Logistics Service Development Law, which recognizes only trucks and motorcycles as means of delivery and delivery, was passed by the National Land Transportation Committee on the 24th. Related industries protested vigorously, saying it is a ‘new law of impediment to the development of the industry ‘that puts not only the delivery of cars and bicycles, which are still in use, but also the delivery of drones, a promising new industry, in the blind spot of the law.
The National Assembly, Land and Transportation Committee held a plenary meeting on this day to discuss the so-called ‘Courier Delivery Law’. The Life Logistics Service Development Act is a law for the purpose of preparing a legal basis for various new means of delivery other than freight cars. However, vehicles other than two-wheelers were excluded from transportation under this law. This is due to the reaction of the freight union that “if other means of transport are recognized, the delivery of freight cars will suffer.” Eventually, companies using other means of transportation, such as cars, bicycles and electric scooters, as in the past ‘Ride’, are placed on the limit of the law, not legal or illegal.
At this time, Coupang Itz and Baemin Connect are expected to become companies without legal basis. The basis for promoting drone delivery, which President Moon Jae-in directly selected as a case of innovation, will disappear. It is very likely that the conflict between Tada and the taxi industry last year will be repeated in the parcel industry. Tada ended his service when the “Tada Prohibition Law” was passed by the National Assembly amid backlash from the taxi industry that it was “illegal.”
Industry was concerned that the contraction of the new industry would become evident due to increased uncertainty. One industry official criticized: “A few months after the Tada crisis ended, we have to think about what’s left besides the discomfort of citizens and the downsizing of new industries.” “The National Assembly is making the same mistakes.”
Unilateral treatment of 與, Life Logistics
Driven by the encouragement of the existing cargo industry … In addition, legislation to prevent the emergence of new industries.
Delivery of electric bicycles to CJ Logistics.
There is criticism that the ruling party enforces the Viva Logistics Services Industry Development Act, which excludes passenger cars, bicycles and skateboards from courier and delivery means of transport without soliciting opinions or deliberating. It is noted that it is pushing forward the bill by reflecting only the demands of the cargo industry, an existing industrial interest group. It is reported that there was no procedure to collect opinions from stakeholders, such as Coupang and People of Delivery, who are in the package delivery industry using cars and bicycles.
According to the Land, Infrastructure and Transportation Committee of the National Assembly on the 24th, in the first car proposed by Democratic Party lawmaker Park Hong-geun in June, in addition to trucks and motorcycles, drones were regulated as a means of transportation, and automobiles and bicycles could be prescribed by Presidential Decree. Later, contrary to the cargo union, all other means except trucks and two-wheelers were established by Presidential Decree. However, when the freight union even opposed this, it was decided to recognize as law only trucks and motorcycles.
It is assessed that the Democratic Party has made a ‘vote’ option this time, just as the Democratic Party gave a hand to the taxi industry in the last tada-taxi debate. Currently, the freight industry is limiting the number of vehicles through commercial license plates to avoid a decrease in transportation rates due to an unlimited number of vehicles. On the yellow business license plate, a premium of tens of millions of won is attached to the so-called “numerical value” similar to the premium for the taxi license. The freight industry was concerned that the numerical value would drop dramatically if other modes of transportation were accepted. The Democratic Party accepted this view as it came from organized freight unions such as the National Federation of Freight Transport Companies, the National Federation of Individual Freight Transport Companies and the National Federation of Freight Transport Companies.
Related industry was concerned that business uncertainty would increase as the parcel industry abandoned the law and moved into the “gray” zone that is neither legal nor illegal. An industry official said, “The biggest problem in doing business is uncertainty” and said, “Who will invest in industries that may be banned?”
It is analyzed that if the industry contracts, there is a high possibility that a significant number of related jobs will decrease. According to the Samsung Transportation Safety Research Institute, etc., the number of courier workers currently using cars, bicycles, hiking and skateboards is estimated to reach 150,000. The legal basis for the drone delivery industry, which he predicts will become a promising new industry in the future, will also disappear. President Moon Jae-in announced the ‘Road Map to Promote the Use of Drone Parcel Delivery’ at a state affairs coordination and review meeting held in October last year, chaired by Prime Minister Lee Nak-yeon , and ordered business revitalization. However, the government and the ruling party drew up a bill to prevent the growth of new industries. Amazon and Uber of the US have announced that they will commercialize drone delivery within 3-4 years, and drone delivery companies such as DJI and Leehang are growing rapidly in China.
It is pointed out that it is a problem to prevent new industries from emerging by law considering only the damage to existing workers. Professor Sung Tae-yoon from the Department of Economics at Yonsei University said: “It is difficult to protect the existing industry itself, but it is difficult to protect the existing industry itself. It is very likely that industry change cannot be prevented. artificially anyway, and only the economic losses will increase. ” said.
Reporter Sung Sang-hoon [email protected]
