Mirae Ohsung Group, a Korea-based company, said on August 26 that it was in talks with Didi Chuxing to form a joint venture in Korea next year, which implies the second-largest ride-hailing company is marching into Korean market.
“We have almost completed the building of ride-hailing platform, and we are waiting for Didi’s final decision,” a senior executive from the Korean company said.
The joint venture’s Korean office is ready for use and Mirae Ohsung Group’s president Kim Beom-chang will take charge of the new company.
Before Didi decided to enter Korean market, Korean government was trying various solutions to alleviate long-term conflicts between traditional taxi sector and mobility startups, and a string of regulations was published in July. For instance, a taxi license is a necessity for drivers to pick orders on ride-hailing platforms.
Conflicts of the two sectors are the issue Didi most concerns, according to people who know the matter, and Didi is still worrying about it even though the situation gets mitigated after the government’s consecutive efforts.
Stepping into Korean market is the Chinese ride-hailing giant’s further global expansion. The company was reported to start its business in Latin America earlier this year, and enter Austria and Japan in 2018. By expanding Korean market, Didi again confronts Uber Technologies Inc, the largest ride-hailing company in the world.
Founded in 2012, Didi is valued at USD 56 billion nowadays and has 90% of market share in China. Eyeing global expansion, the company operate its business in over 1,000 cities in Japan, Southeast Asia, North America, and Latin America.