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Photo = Kakao Mobility |
[Alpha Biz= Kim Jisun] Seoul, South Korea – May 25, 2025 – Kakao Mobility (Kakao Mobility, or “Kamo”) has implemented an AI-based dispatch system that prioritizes drivers with high acceptance rates—over 50%—to enable faster ride assignments. A recent court ruling determined that this dispatch method, including preferential treatment for affiliated taxis, does not constitute unfair business practices.
According to the court ruling obtained by Yonhap News, Kakao Mobility introduced the AI-based dispatch system in mid-April 2020. The system prioritizes the driver with the shortest estimated time of arrival (ETA) among those who meet specific performance criteria.
To be eligible for AI-priority dispatch in 2020, drivers had to meet all of the following criteria:
A ride acceptance rate of at least 40% either the previous day or on a weekly average
Fewer than one daily “Avoid this driver” flag over the past week
Fewer than one low-rating (1-star) occurrence per day over the past week
A ride completion count equal to or greater than the average in the driver’s service area (daily or weekly basis)
If no eligible drivers accepted the ride, the system would sequentially send notifications based on ETA rankings.
In late August 2020, Kakao Mobility raised the minimum required acceptance rate to 50%, and the AI dispatch logic has remained in effect ever since.
The Korea Fair Trade Commission (KFTC) had previously argued that Kakao Mobility unfairly manipulated its dispatch algorithm to favor Kakao T Blue-affiliated taxis and issued a corrective order and a provisional fine of KRW 25.7 billion (approx. USD 19 million) in February 2023.
However, the appellate court ruled on May 22, 2025, that Kakao Mobility's practices—including the AI-priority dispatch, preferential dispatching of affiliated taxis, and short-distance ride prioritization—did not constitute significantly discriminatory or unfair conduct, thus overturning both the corrective order and fine.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
