2 Uber Korea officials indicted over taxi service

Two Uber Korea officials have been booked for violating the local transport law, Seoul police said Tuesday, amid growing controversy over the legality of the business.

Uber Korea’s branch manager and his subordinate official were accused of taking commissions on connecting rental car drivers through a smartphone application since August 2013. The company took a 20 percent commission fee from the ride fares, the police said.

Under the Korean transport law, providing unpermitted or unlicensed transportation is banned.

The two officials also faced allegations that they provided the location information of the passengers to drivers without due registration with the authorities, investigators said.

Uber Technologies Inc. CEO Travis Kalanick has also been indicted for additional illegalities, three months after he was booked for establishing and operating the ride-sharing company, they added.

While the police are planning to summon Kalanick for the further probe, they are considering issuing an arrest warrant if he does not comply, the authorities said. Kalanick, who is reportedly staying overseas, has not been appearing in the trial.

A total of 27 rental car company owners and private drivers were also indicted for involvement in the illegal ride-sharing service, the police said.

Earlier this month, the San Francisco-based company said it would suspend the service as it continued to face regulatory hurdles and resistance from local taxi drivers.

By Lee Hyun-jeong (rene@heraldcorp.com)