Business

South Korean Government Indicts Uber CEO for Violating Transport Laws

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More trouble for Uber! After facing a number of regulatory and legal hurdles with its business in India, California, Germany and now South Korea is pushing back against the car service. The Seoul Central District Prosecutor’s Office has issued an indictment against Uber’s Korean unit and its CEO Travis Kalanick, for violating transport laws prohibiting individuals or firms without appropriate licenses from providing or facilitating transportation services.

As per a Reuters report, the charges allege that Uber drivers are not authorized to provide paid transportation services, if they will continue their services then the charges could carry a sentence of up to two years in prison and a fine of approximately USD 18,000. The Prosecutors’ office however, will not make any arrests under the indictment.

The South Korean government claims that the app is illegal because the vehicles shuttling users around aren’t registered as taxis. Also, the Government is offering rewards for passengers who report unauthorized drivers operating as a part of the Uber network.

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“We firmly believe that our service, which connects drivers and riders via an application, is not only legal in Korea, but that it is being welcomed and supported by consumers,” Uber said in its statement. “Uber Technologies respects the Korean legal system and will provide its full cooperation.”

Recently, the Delhi Government banned all activities by the cab service on similar grounds of operating without a license, and has recently issues fresh guidelines for operation. The city of Chongqing on mainland China is also reportedly investigating Uber and its operations within its city limits.

Image Source: Uber

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