Published On: Wed, Dec 24th, 2014

South Korea Prosecutors Indict Local Uber Subsidiary

Uber CEO Travis Kalanick works with fourth graders during Cooking Matters,   a nutrition class taught by 18 Reasons,   a local partner of Share our Strength at Glen Park Elementary School in San Francisco


South Korean prosecutors have indicted the local subsidiary of U.S. taxi-hailing service provider Uber Technologies Inc for violating a law governing public transport, Yonhap News Agency reported on Wednesday.

The Seoul Central District Prosecutors’ Office issued an indictment – which also named Chief Executive Officer Travis Kalanick – for violating a law prohibiting individuals or firms without appropriate licences from providing or facilitating transportation services, Yonhap reported, citing an unnamed prosecution official.

Prosecutors will not make any arrests as part of the indictment, Yonhap said. The penalty for breaking the law in question is a maximum fine of 20 million won ($18, 121) or a prison sentence of up to two years, the news agency reported.

Uber, through its apps, charges fees to play matchmaker for passengers and drivers – some registered as taxi drivers. But a lack of regulation for the relatively new business model has brought Uber to the attention of authorities worldwide.

Last week, Seoul’s city legislature passed a measure to fine Uber drivers not registered as taxi drivers, and offer financial reward for those reporting such drivers.

The prosecutors’ office declined to comment on the Yonhap report. An Uber spokeswoman was checking the veracity of the report and said Uber services were functioning as normal.

($1 = 1, 103.7000 won)

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