Prosecution Seeks 1-Year Prison Sentence for Socar CEO Lee Jae-woong: "Tada is a Multi-Passenger Call Taxi"

Lee Jae-woong (right), CEO of Socar, and Park Jae-wook, CEO of VCNC, are entering the courtroom to attend the first trial sentencing hearing disputing the illegality of 'Tada' at the Seoul Central District Court in Seocho-gu, Seoul on the 10th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporter Kim Hyung-min] The prosecution has requested a prison sentence for Lee Jae-woong, CEO of Socar and operator of 'Tada,' who has been embroiled in controversy over 'pseudo-taxi' services and brought to trial.

On the 10th, at the sentencing hearing presided over by Judge Park Sang-gu of the Seoul Central District Court Criminal Division 18, the prosecution asked for "a one-year prison sentence." They also requested a one-year prison sentence for Park Jae-wook, CEO of the subsidiary VCNC, who was indicted alongside Lee. The companies involved were each fined 20 million won.

The prosecution stated, "Customers using 'Tada' perceive the service as taking a call taxi, not as renting an 11-passenger Carnival through a lease contract with Socar," adding, "In conclusion, 'Tada' constitutes multi-passenger call taxi operations, that is, paid passenger transportation, and cannot be considered a car rental business."

They further pointed out, "Tada users should be guaranteed rights as passengers, and drivers as workers, but the operation does not reflect this."

Lee and Park were indicted without detention last October on charges of violating the Passenger Transport Service Act. They are accused of operating a paid passenger transport business without a license by using an 11-passenger van and driver through a smartphone application.

Socar has argued that Tada's operation is legal based on an exception clause for driver mediation by rental car operators. The Enforcement Decree of the Passenger Transport Service Act allows driver mediation for "passenger vehicles with seating capacity between 11 and 15." The taxi industry has opposed this, claiming that Tada distorts the legislative intent of the exception clause and operates illegal taxi services.

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