The taxi service industry is heavily regulated by local government. Especially a majority of large urban area tends to control entry, fares, services, and quality. Governmental laws strongly guarantee taxi services area of each district. For example, Seoul taxi cannot attract taxi user in other districts such as GyeongGi-do, Incheon-si and Gangwon-do. To enhance taxi user’s convenience, some districts, Guro-gu, Geumchon-gu in Seoul and Gwangmyong-si in GyeongGi-do where both regions are spatially adjacent, allow to operate freely and to exempt from extra fee since 1998 under bilateral agreement. However, some are raising several arguments about this deregulated entry.

The policies and manuals associated with taxi operation in consolidated area are not indeterminate. Even though some laws guide the mutual coordination, there are significant conflicts between local offices. For instance, the total number of fleet need are different according to the situation of each district and this policies have not been considered integrally. Thus Gwangmyeong-si, where total taxi number would increase in taxi operation manual, could affect the service quality of Seoul when Gwangmyeong taxies allure taxi customers.

The results of analysis of effect of the consolidated taxi service show that the policy is needed to improve and revise the problem of the current consolidated taxi service region policy. This research is possible because all of company taxi in Seoul are equipped with Digital Taco Meter(DTG). The effects are evaluated whether the policies achieve its goals. One of the main aims of the policy is to give the benefit the local taxi companies by enlarging the market and to demand for taxi. It is true that the operation area of taxi in Seoul broaden. But there is relatively low benefit of the taxi companies in Guro·Geumcheon-gu due to the fact that these area drivers operate their taxi in other region than the consolidated area. And taxi drivers in Guro·Geumcheon area show greatly their dissatisfaction due to the loss of their operation area from Gwangmyeong taxi. The survey results present the major discontent is the conflict between two areas and the second is financial loss.

There are no indicative improvements in service for taxi customers. The result of Taxi user survey presents that users still experience refusal of taking a taxi. The law powerfully bans the rejection of passenger in inner-city, but, taxi could deny when customer requests inter-city trip. Nevertheless, with the ignorance of consolidation policy, passenger are currently not raise an issue about the refusal. Taxi drivers mind driving forward to other district because it is hard to attract passengers who have their destination is the driver’s operation area. Taxi drivers would not refuse when they could go back from the region with passenger, however the DTG analysis tells that the consolidated area has low rate of success of going back travel with passenger.

In a nutshell, the consolidated policies has to be revised in oder to meet the major purposes of taxi policies. It is necessary to enhance the service quality and taxi driver’s income, however, the disadvantages of policies triggers the conflicts between taxi drivers and passengers do not recognize the advantages of the policies. Whereas all of the company taxies in Seoul have the DTG system, the taxies in other district are not installed this equipment. So it is difficult to manage and monitor the taxi services and operation. The research limitation is lied on this bias, so we should rely on survey method to identify the characteristics of taxi operation pattern of Gwangmyeong-si