24 December 2014/Categories: Industry News
Uber CEO Travis Kalanick, the company’s local subsidiary and car-rental partner MK Korea have been indicted in South Korea for allegedly violating a public transport licensing law.
In South Korea, it is illegal for companies or individuals to offer public transport services without the correct license. In this case, it is alleged that rental cars were illegally used to offer passenger transport services.
While the South Korean authorities say no arrests will be made in connection with the charges, the accused are facing a fine of up to 20 million won (£11,684) or a maximum of two years in prison if convicted.
Uber’s parent company Insight Communications has released a statement that says: “Uber Technologies respects the Korean legal system and will provide its full cooperation.” Seoul has also passed a motion to fine Uber drivers who do not register as taxi drivers. The lack of regulation around Uber’s services has led to scrutiny from authorities in countries around the world.
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