Lee Jae-woong: "'Tada' Faces Crisis of Closing Without Even Starting"

Jaewoong Lee, CEO of Socar

[Asia Economy Reporter Bu Aeri] Lee Jae-woong, CEO of Socar, who is scheduled for a verdict trial on the 19th, stated regarding the van call service 'Tada' that "If the Park Hong-geun law, known as the Tada Prohibition Act, passes, we will face a crisis where we have to prepare to close down without even starting."

On the 10th, the prosecution requested a one-year prison sentence for Lee and Park Jae-wook, CEO of VCNC, who were indicted on charges including violation of the Passenger Transport Service Act related to the van call service 'Tada'. The verdict trial for this case is scheduled for the 19th.

On the 17th, Lee said on his Facebook, "However, we are restarting with the belief that our society will not shut down companies that create new value."

He added, "The first step after Tada's independence is protecting drivers, who play the most important role in the Tada ecosystem," and explained, "Although it is still the beginning and there may be shortcomings, we will steadily improve."

Socar had earlier decided to split and establish 'Tada (tentative name)'. Accordingly, 'Tada' will be spun off from Socar and launched as an independent company starting in April.

Lee emphasized, "There are many criticisms about the platform economy and sharing economy, but I believe that since it is still in the early stages worldwide, Korea can set a model. It is time for companies, government, National Assembly, and labor sectors to put their heads together and think about how to create a new ecosystem based on the future. It is time to create new rules and new agreements."

Meanwhile, the amendment to the Passenger Transport Service Act, which was primarily proposed by Park Hong-geun, a member of the Democratic Party of Korea, is pending in the National Assembly's Legislation and Judiciary Committee. If the bill passes, Tada will become illegal after one year and six months.