South Korea has decided to reject online ride-sharing firm Uber Technologies Inc's proposal for a brand new driver registration system. The government also vowed to shut down the U.S. company's operations on Thursday, according to Reuters.
Uber proposed a new registration system on Wednesday to allow company drivers to operate legally in South Korea, where Uber CEO Travis Kalanick and the head of the company's South Korean unit have been indicted for violating licensing rules.
The transport ministry for Asia's fourth-largest economy said a parallel taxi registration system was not acceptable in a market that is already supplied with taxis.
"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," the ministry said in a statement, according to Reuters.
The government said it will continue to curtail Uber's activities and work with legislators to ban Uber's ride-sharing service.
The four-year-old U.S. company, which lets people summon taxi-like services through their smartphones, has been criticized all over the world over a number of issues, despite its expansion into 250 cities globally.
Last month, Seoul started offering rewards of up to 1 million won ($929) to people who reported private or rented car drivers providing transportation through Uber, according to Reuters.
Uber's proposal has already been implemented in places like London, New York and California, based on the company's new conciliatory tone to legal issues and criticism of his business approach.
"The solution that we seek with Seoul city, the ministry of transportation and the National Assembly is to find a solution that works for taxis, works for consumers and works for the overall Korean economy," said Plouffe, former campaign manager for U.S. President Barack Obama, according to Reuters.
For now, it doesn't look like Uber is going to get its way, and its dispute with South Korea seems far from over.
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