Home / / South Korea snubs Uber’s driver reg proposals, pledges ban of service

South Korea snubs Uber’s driver reg proposals, pledges ban of service

Transport ministry denounces online cab service as ‘clearly illegal’

Law and regulation, Government, Uber (www.uber.com/)

Beleaguered Internet cabbie business Uber faced another setback in South Korea today, as the country's transport ministry rejected the company's proposal for a new driver registration system and declared its operations "clearly illegal", Reuters reported.

US-based Uber has faced a litany of legal and regulatory backlashes around the world in its four years of operations. Earlier this week, news emerged that its biggest investor, Google, was considering the launch of a competing service.

Uber business model works by allowing private individuals to create accounts online and become drivers without having to obtain a licence or submit to rigorous screening.

Uber CEO Travis Kalanick and the head of the company's South Korean division have been charged with violating the country's licensing regulations. The company faces similar probes in Belgium, France, Germany, the Netherlands and Spain.

"Transporting customers with private or rented cars and accepting compensation is clearly illegal. The company is ignoring local laws by stating its intention to continue such operations," South Korea's transport ministry said in a statement, vowing a concerted effort to stop Uber operating in the country.