Korea denies talks with Uber over registration system

The South Korean government denied that it has been in talks with Uber Technologies to adopt a driver registration system, reiterating its opposition to the online ride-hailing tech firm’s “illegal” operations in the country.

The Transport Ministry said last week that allowing local Uber drivers to become licensed could be a threat to existing taxi drivers and can excessively intensify competition in the oversaturated market. 

“Uber’s proposal contradicts the government’s policy that aims to reduce the number of taxis here and resolve the market’s oversupply problem,” the ministry said in a statement.

The ministry’s statement came after David Plouffe, Uber’s senior vice president for policy and strategy, said at a press conference that the company was in negotiations with the government on its registration proposal.

The executive of the California-based tech company suggested that it set up a registration system requiring Uber drivers to meet certain standards, including training and experience, which will in effect help curb potential safety risks and insurance coverage concerns.

The ministry, however, underscored its tough stance against Uber’s operations, saying that “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 operations,” the ministry said.

The provider of the controversial taxi-hailing app has faced strong resistance and intense scrutiny by the authorities since it was launched in 2013 as its unregistered service is currently regarded as illegal.

Since last month, the Seoul City government has begun offering a 1 million won ($916) reward to those who report vehicles operating on the Uber platform.

In December 2014, the prosecution in Seoul indicted Uber chief Travis Kalanick and the head of the Korean unit for violating transportation licensing regulations.

By Park Han-na (hnpark@heraldcorp.com)