'Tada' First Trial Verdict Today... "Illegal or Innovation?" Conclusion

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

[Asia Economy Reporter Seongpil Jo] The first trial ruling on the legality of the vehicle call service 'Tada' will be announced on the 19th. On the morning of the 19th, Judge Park Sang-gu of the Seoul Central District Court Criminal Division 18 will hold a sentencing hearing for Lee Jae-woong, CEO of Socar, and Park Jae-woong, CEO of its subsidiary VCNC, who were indicted for violating the Passenger Transport Service Act. Thus, Tada, which sparked controversy as an 'illegal taxi,' will face a court ruling 1 year and 5 months after its service launch.

The case was triggered when the Seoul Private Taxi Association filed a complaint with the Seoul Central District Prosecutors' Office in February last year, just 4 months after the service launch, claiming that "Tada is an illegal similar taxi." The prosecution then handed the case over to the police. The Seoul Gangnam Police Station, which conducted the investigation, sent the case back in April with a 'no charges' opinion. Meanwhile, the taxi industry continued to hold rallies demanding that "Tada be declared illegal and its operations be stopped." Eventually, in October last year, the prosecution decided to seek a final court ruling and indicted the management.

The trial was held twice. The first hearing took place on the 8th of last month, and the closing arguments were held on the 10th of this month. During the trial, the prosecution argued that Lee and others violated Article 34-2 of the Passenger Transport Service Act. This law stipulates that using or mediating the use of leased commercial vehicles for paid transportation is punishable by imprisonment for more than 2 years or a fine of up to 20 million won. Based on this, the prosecution requested a sentence of 1 year imprisonment each for Lee and Park during the closing arguments and a fine of 20 million won for the corporate entity.

In response, Socar argued that the business was legal based on the Enforcement Decree of the Passenger Transport Service Act. This decree allows driver mediation for 'passenger vehicles with a seating capacity of 11 to 15.' They claimed innocence, stating that they were operating a legally permitted 'rental car with driver' business.

The trial outcome is also expected to influence the 'Tada Ban Act' currently under discussion in the National Assembly. This bill is pending in the National Assembly's Legislation and Judiciary Committee, and with the temporary session starting on the 17th, the possibility of its passage has opened. It is reported that the ruling party and the Ministry of Land, Infrastructure and Transport are closely watching the sentencing result in relation to the direction of handling the Tada Ban Act.

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