by JAMES S. KIM | @james_s_kim
editor@charactermedia.com
South Korean authorities arrested nearly 30 people in a raid at Uber South Korea’s offices, Yonhap News Agency reports. According to police, the employees were booked on suspicion of operating illegal taxi services in the country through the UberTAXI app.
The 32-year-old head of Uber Korea was arrested on Tuesday along with other company officials, including drivers and heads of six different car rental firms. A spokesperson for the company said they were cooperating with authorities, but denied any wrongdoing. Police also seized over 400 items as evidence.
Uber launched its UberTAXI service in October, despite Seoul officials cracking down on its other services in the city. The battle has gone back and forth, with Seoul apparently preparing their own GPS-enabled taxi app and offering rewards for reporting illegal Uber drivers as they continued their crackdown.
Uber responded earlier this month by suspending Uber X, their ride-sharing platform, and offering its UberBLACK service, which only employs professional chauffeurs, in an apparent effort to avoid a complete ban. In a statement, Uber said they were committed to cooperating with the city.
South Korean authorities still cite several concerns with Uber, saying its services threatened the cab industry and posed a risk for passenger safety since drivers aren’t screened and cars may not be insured. They also claim card information and phone numbers could be leaked.
Uber Technologies Inc. CEO Travis Kalanick, who resides in the U.S., was also charged a second time for conducting an illegal business. He was indicted without physical detention on charges of establishing and running Uber Korea in December.
So far, Kalanick has refused to come to South Korea and stand trial, but authorities said they are planning to summon him again; if he continues to ignore the summons, police said they plan to seek an arrest warrant.
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