South Korea taxi industry turns to foreign drivers amid labor shortage

South Korea's corporate taxi industry is increasingly turning to foreign workers to combat a severe labor shortage and an aging workforce. According to the Korea Transportation Safety Authority, the number of corporate taxi drivers nationwide fell by 33.5% over the last decade, dropping from 112,890 in 2016 to 75,109 by August this year.

While the total number of foreign drivers remains relatively small, their growth is rapid. The number of foreign drivers rose from 54 in 2016 to 122 recently, representing a 47% increase in just one year. This shift is driven by Korean drivers moving to private taxi services and foreign workers transitioning from the construction and manufacturing sectors due to economic downturns in those industries.

Some taxi companies in Seoul are actively recruiting Chinese nationals with F-4 or F-5 visas, offering monthly salaries of over 3 million won. While the industry views this as an inevitable response to demographic shifts, challenges remain, including ensuring passenger safety, managing communication barriers, and addressing social tolerance and potential xenophobia.