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US cab-hailing app operator Uber was slapped with a fine of 8,890 US dollars Wednesday after a court found it guilty of providing illegal tax services in a suit filed by city officials and tax drivers.
Uber launched its key ride-sharing business in South Korea in 2013 despite stiff resistance from Seoul city authorities and taxi driver. The business was suspended in March 2015.
In December 2014, Uber Technologies CEO Travis Kalanick and his South Korean unit were charged with violating a law on passenger transport services because their local partner and rental-car service operator, MK Korea, was not allowed to offer tax services.
In Wednesday's trial, Uber's local unit was fined 10 million won. A Seoul court said Uber acknowledged its wrongdoing and observed domestic rules after suspending its operation. Kalanick has boycotted court hearings.
Last year, Uber launched its premium taxi service, Uber Black, in Seoul, hired existing tax drivers to operate their own vehicles and pick up riders using Uber's mobile app.
This year, Uber plans to jump into South Korea's thriving mobile food delivery market as its taxi hailing service remained stagnant due to legal hurdles and competition with a cab-hail app launched by Kakao Talk, the country's largest mobile messenger app.
Lim Chang-won = cwlim34@ajunews.com
임장원 cwlim34@ajunews.com
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