By Jung Min-ho
Ridesharing service Uber CEO Travis Kalanick has been indicted for operating an illegal taxi service.
The Seoul Central District Prosecutors' Office said Wednesday it filed charges against Kalanick, 38, and executives of Uber Korea Technology and MK Korea, a rental-car service operator, for violating the Passenger Transport Service Act.
Insight Communications, Uber's PR agent in Korea, said that its client was ready to cooperate with Korean prosecutors without saying whether Kalanick would come to Korea to stand trial.
Under the law, rental-car service operators are not allowed to offer taxi services. Violators can face imprisonment for up to two years or a fine of 20 million won ($18,000).
The prosecution said Uber, the provider of a ridesharing smartphone app service, has run a business since August last year in partnership with MK Korea, which takes 20 percent of the total revenue as commission for providing cars and drivers.
The Seoul Metropolitan Government (SMG) responded promptly by filing complaints repeatedly against Uber with police and the prosecution.
But Kalanick has refused to show up for questioning.
Prosecutors have stepped up their investigation in response to local taxi drivers, who are afraid of losing their customers to the new service.
In July, an Uber driver, who operated a driving service with a rental car, was fined 1 million won by Seoul Western District Court.
SMG ramped up its efforts to crack down on Uber early this week by offering a reward of 1 million won ($910.5) for those who report drivers.
This followed the passing of an ordinance banning Uber from the capital by the city council last Friday.
SMG said that the service put the public at risk, following rapes by an Uber driver in New Delhi and one in Boston.
Uber, however, has vowed to continue its business, claiming SMG is hindering the function of market forces as over 90 percent of people who have used its service wanted to use it again.
"We have such overwhelming support from our customers because UberX is safer than any other mode of transportation in Seoul," Uber said in a statement.
Founded in 2009, Uber quickly spread to 250 cities in 50 countries. But it has been in the eye of the storm lately as it grapples with a growing number of controversies.
The Netherlands, France, Spain, Thailand, Vietnam and Singapore, and the cities of Nevada and New Delhi have all banned Uber. It has also been sued in Portland, San Francisco and many other cities around the world.
Especially, the company was hit hard after the two sexual assaults.
For its part, Uber maintains that it will operate within the law. The company says it works with local governments wherever possible to ensure its services comply with legal constraints.
 |
Travis Kalanick |
The Seoul Central District Prosecutors' Office said Wednesday it filed charges against Kalanick, 38, and executives of Uber Korea Technology and MK Korea, a rental-car service operator, for violating the Passenger Transport Service Act.
Insight Communications, Uber's PR agent in Korea, said that its client was ready to cooperate with Korean prosecutors without saying whether Kalanick would come to Korea to stand trial.
Under the law, rental-car service operators are not allowed to offer taxi services. Violators can face imprisonment for up to two years or a fine of 20 million won ($18,000).
The prosecution said Uber, the provider of a ridesharing smartphone app service, has run a business since August last year in partnership with MK Korea, which takes 20 percent of the total revenue as commission for providing cars and drivers.
The Seoul Metropolitan Government (SMG) responded promptly by filing complaints repeatedly against Uber with police and the prosecution.
But Kalanick has refused to show up for questioning.
Prosecutors have stepped up their investigation in response to local taxi drivers, who are afraid of losing their customers to the new service.
In July, an Uber driver, who operated a driving service with a rental car, was fined 1 million won by Seoul Western District Court.
SMG ramped up its efforts to crack down on Uber early this week by offering a reward of 1 million won ($910.5) for those who report drivers.
This followed the passing of an ordinance banning Uber from the capital by the city council last Friday.
SMG said that the service put the public at risk, following rapes by an Uber driver in New Delhi and one in Boston.
Uber, however, has vowed to continue its business, claiming SMG is hindering the function of market forces as over 90 percent of people who have used its service wanted to use it again.
"We have such overwhelming support from our customers because UberX is safer than any other mode of transportation in Seoul," Uber said in a statement.
Founded in 2009, Uber quickly spread to 250 cities in 50 countries. But it has been in the eye of the storm lately as it grapples with a growing number of controversies.
The Netherlands, France, Spain, Thailand, Vietnam and Singapore, and the cities of Nevada and New Delhi have all banned Uber. It has also been sued in Portland, San Francisco and many other cities around the world.
Especially, the company was hit hard after the two sexual assaults.
For its part, Uber maintains that it will operate within the law. The company says it works with local governments wherever possible to ensure its services comply with legal constraints.
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