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Leaked documents reveal N. Korea’s push for digital taxi payments

Leaked documents reveal N. Korea’s push for digital taxi payments

Daily NK has obtained the complete text of North Korea’s taxi operation rules, which were enacted in 2022. The rules require taxis to be equipped with credit card machines and smartphone payment systems, suggesting that cashless taxis may be operating in North Korea.

Article 2 of the taxi operation rules defines taxis as “passenger vehicles that are authorized by the state and registered as taxis with the vehicle licensing body.” The rules divide taxis into sedans and minibuses marked as taxis, distinguishing them from other vehicles.

The rules limit taxi operations to agencies, enterprises and organizations designated by the state (Article 7) and require taxi operators to obtain a permit from the Central Vehicle Transportation Oversight Agency (Article 9).

Those applying for taxi operation permits must submit documents detailing their organization’s legal grounds, registered location, the number and types of taxis in their fleet, taxi number ranges, operation dates and hours, operational capacity including office and repair facilities, fuel and parts supply capacity, and traffic safety instruction capacity.

Taxi operators must clear multiple procedural hurdles before receiving authorization. Long-distance taxi operations require police approval, and minibuses traveling between Pyongyang and the provinces, between different provinces, or between different cities and counties within a province must first obtain a “route pass” from the Central Vehicle Transportation Oversight Agency (Article 11).

Technical requirements and electronic payment systems

The technical requirements in the taxi operation rules are particularly striking.

According to Article 18, all taxis (except minibuses with a route pass) must install a taximeter that automatically calculates distance traveled and fare owed. Taximeters must be government-inspected, securely installed and capable of printing receipts.

Additionally, Article 21 requires taxis to “acquire a credit card payment terminal and a smartphone electronic payment system and advertise themselves accordingly.”

This requirement appears to support the authorities’ efforts to track and monitor all transactions electronically while minimizing cash circulation in taxi fares. Taxi operators also need a separate permit to accept fares in foreign currency, reflecting the authorities’ interest in monitoring and controlling foreign currency circulation.

Rule violations carry harsh penalties. Taxi operators are warned that unauthorized operation, failure to install or maintain a taximeter and electronic payment system, failure to comply with state-mandated fare tables, and complaints about poor service may result in suspended operations (Article 27) or confiscation of operating licenses or route passes (Article 30).

The rules also address driver qualifications and services. According to Articles 15 and 20, taxi drivers are expected to be cultured individuals with strong moral character who dress conservatively. Drivers and conductors of minibuses must also wear their designated uniforms.

A notice displaying the driver’s photograph, name and phone number must be prominently displayed in each taxi.

Regarding taxi service (Article 25), taxis are supposed to operate short routes to set destinations and are prohibited from exceeding the vehicle’s seating capacity, forcing passengers to share rides with strangers, and loading excessive cargo. Taxi operators also cannot collect fares from passengers forced to disembark before reaching their destination when the taxi breaks down or is pulled over by authorities (Article 24).

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