South Korea has become the latest country to fight
against the rise of ride-hailing service
Uber, by indicting the local subsidiary and CEO Travis Kalanick shortly after launch. The company is said to be "violating a law prohibiting individuals or firms without appropriate licenses from providing or facilitating transport services," a legal challenge previously arising in a number of other markets around the world.
Yahoo reports the Seoul city government is offering a financial reward for individuals reporting Uber drivers who are not registered as taxi drivers, with the Uber employees facing individual fines. While there will not be any arrests, the Yonhap News Agency claims the company is risking a prison sentence for staff of up to two years, and a maximum fine of 20 million won ($18,100).
"Uber Technologies respects the Korean legal system and will provide its full cooperation," said the company in a statement. "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's services are reportedly operating normally in the city.
South Korea is only the latest market to raise legal issues with Uber. In December alone, there have been reports of disagreements between Uber and legislators in
Portland,
San Francisco, Los Angeles,
Nevada,
India, Thailand, Spain, and Vietnam. The company
recently raised over a billion dollars in its latest funding round, which Kalanick claimed would help "make substantial investments, particularly in the Asia Pacific region."