Travis Kalanick, Uber Technologies Inc.’s chief executive officer, was indicted in South Korea for disregarding a local transportation law prohibiting rental cars from operating as cabs, according to a report by Yonhap News.
Kalanick, Uber’s Korean unit and car rental partner MK Korea were charged by the Seoul Central District Prosecutors’ Office.
Authorities intensified their investigation in response to angry local taxi drivers who said their income has been impacted unfairly by the Uber service, according to the report.
Uber said that it would cooperate with the investigation. "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 a statement.
Under the domestic law in South Korea, rental car operators are banned from conducting passenger-transport business using their vehicles, according to the report. Violators could face up to two years in prison.
Last year, the Seoul Metropolitan Government filed a complaint against Uber, which led to this investigation, says the report.
Click here for the full Yonhap News report: http://english.yonhapnews.co.kr/search1/2603000000.html?cid=AEN20141224007800315